Former Flint insurance agent sentenced to jail for embezzlement

Published: Nov. 24, 2020 at 3:59 PM EST
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FLINT, Mich. (WILX) - A former Genesee County insurance agent, 53-year-old Angella Kay Swain, was sentenced to prison on Tuesday for embezzling more than $90,000 from her clients and giving them fake insurance certificates.

The following information was provided by Attorney General Nessel’s office:

Charges were filed in the case by the Attorney General’s office in October 2018 after it was referred to the office by the Michigan Department of Insurance and Financial Services (DIFS).

On Tuesday, Swain appeared before Judge Celeste D. Bell in Genesee County Circuit Court. Her sentencing follows a plea deal she entered in July in which she pleaded no contest to one count of conducting a criminal enterprise, 11 counts of embezzlement by an agent between $1,000 and $20,000, and one count of using a computer to commit a crime.

Swain was sentenced to 20 months to 20 years’ imprisonment. She will begin serving her sentence on January 11, 2021. She is also responsible for paying restitution of about $90,223 to 34 victims. She paid $12,000 of that Monday.

“I am grateful for the partnership between my office and the Department of Insurance and Financial Services, as well as the commitment to justice that is clearly shared by all of us involved with this case,” Nessel said. “Embezzlement is a crime my office takes very seriously and we will aggressively pursue justice by enforcing the laws that serve to protect our residents and consumers from fraudulent, predatory actions such as these.”

“Ms. Swain’s sentence makes it clear that there is no tolerance for fraud in the Michigan insurance industry, and it should serve as a warning to those who seek to exploit Michiganders,” said DIFS Director Anita Fox. “Our close partnership with the Attorney General’s office and other law enforcement enables DIFS to protect consumers and bring criminals like Ms. Swain to justice.”

Between 2011 and 2016, Swain took insurance premiums from at least 34 of her clients and converted the money to her own use instead of remitting the premiums to the insurance companies. In many instances, Swain issued her clients false insurance certificates, leading her clients to believe they had homeowners or auto insurance coverage when they did not.

Swain was a licensed insurance producer and operated the Swain Agency from 2002 to 2013.

DIFS took enforcement actions against Swain in 2003, 2006 and 2009. In 2013, DIFS summarily suspended Swain’s insurance producer license and permanently revoked it in December 2014 for misappropriating clients’ premiums.  In 2014, Swain continued to sell insurance without a license while working at her ex-husband’s insurance agency, Select Insurance Agency.

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