Unlicensed agent embezzled premiums

Sept. 10--By Michelle Charles

[email protected]

The Oklahoma Insurance Department is continuing its investigation into Cushing insurance agent Mark Lauderdale. OID says it began looking at Lauderdale after one of his clients, a not-for-profit corporation operating in Payne County, filed a complaint with the agency after discovering it had not had insurance of any kind since Dec. 31, 2013.

According to OID's application for a Cease and Desist Order against Lauderdale, the Payne County corporation identified only as I.A.C. purchased an annual commercial package that was to include both general liability and property insurance.

The company said it paid premiums monthly at Lauderdale's agency, thinking they were being forwarded to the insurance company but the money was instead deposited into Lauderdale's business bank account.

I.A.C. estimated it had lost about $5,400.

OID says it confirmed the corporation's commercial liability policy had been cancelled since December 2013.

Lauderdale was censured and fined $5,000 in 2003 after a client complained he collected premiums for its commercial policy but didn't forward the money to the company. The client did not have insurance but was provided with a bogus policy number, according to OID.

OID says it received another similar complaint about Lauderdale in 2012.

The agency executed a search warrant on Lauderdale's office July 31, at which time he told investigator Mark Drummond he had kept I.A.C.'s premium payments for his own use. Drummond said he also admitted to keeping premium payments from an incorporated town that thought it was buying liability insurance, vehicle coverage, property insurance, Fire Station liability and an Errors and Omissions policy for its public officials.

The town had been operating completely uninsured for approximately three years. OID alleges Lauderdale created counterfeit insurance documents to cover his activities.

The agency says it has identified more victims.

Lauderdale is barred from entering his office and a Cease and Desist Order has been filed, forbidding Lauderdale or any staff from engaging in unauthorized insurance business activities.

OID representatives said they were unable to discuss the case further at this time because the investigation is ongoing.

Twitter: @mcharlesNP

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