Former Ohio insurance agent sentenced for thefts

COLUMBUS — Ohio Department of Insurance Director Judith L. French announced that former Ohio-licensed insurance agent Rhonda Chandler, of the Columbus area, was sentenced on Feb. 7 in Franklin County Common Pleas Court to five years of probation and three years in prison if the probation agreement is violated. Chandler, who pleaded guilty to felony theft involving numerous victims totaling more than $1.4 million, has paid $350,500 in restitution and was ordered to pay the remaining amount.

An Ohio Department of Insurance investigation revealed that Chandler, through her insurance businesses Senior Marketing Consultants and Chandler Insurance Agency, stole and misappropriated funds, including premiums for pre-need life insurance policies, commonly known as burial or funeral insurance.

“Protecting Ohio consumers is our top priority, and this case shows our commitment to holding those who abuse the trust of consumers accountable,” French said. “We appreciate the involvement of the Ohio Funeral Directors Association, the Franklin County Prosecutor’s Office, and the insurance industry for ensuring this individual was held accountable for her illegal conduct.”

The misused funds were intended to cover funeral expenses and settle trust claims after funeral services were provided, but Chandler diverted the money for personal and business use, impacting 14 Ohio funeral homes serving their customers’ financial needs. The insurer that issued the policies has fully reimbursed the affected funeral homes, and restitution will be directed to the insurer.

Chandler’s fraudulent activity came to light when a civil lawsuit was filed against Chandler for failing to provide pre-need funeral funds to a funeral home. Chandler assisted funeral directors in placing pre-need funeral funds in an insurance or trust product and administered a trust. When a customer enters into a pre-need funeral arrangement with a funeral home, the funds are required to be placed in an insurance product or a trust. Pre-need funeral funds are payments made in advance for funeral and burial arrangements.

The Ohio Department of Insurance revoked Chandler’s insurance license in October 2021 for failing to timely submit applications and insurance premiums to an insurer and engaging in fraudulent, coercive, or dishonest practices after identifying 25 counts of agent misconduct. Chandler was indicted in November 2023 on charges of theft, a second-degree felony, and falsification, a third-degree felony. Chandler initially denied the wrongdoing but later confessed.

Ohioans who suspect insurance professional misconduct and/or insurance fraud are encouraged to report it to the Ohio Department of Insurance at 800-686-1527 or insurance.ohio.gov. Referrals can be made anonymously, and the law protects those who report fraud from civil liability in the absence of fraud or bad faith.