At National Agents Alliance we pride ourselves in helping others and making a difference in other people’s lives, but not all life insurance agents believe in those principles. Just like in any profession, there are a few bad apples in every bunch. As in a recent case involving a former Hawaii insurance agent (not affiliated with NAA) she drained the life insurance accounts of two customers.
Kathleen Kau was sentenced to 10 years in prison after she stole over $360,000 over five years from two longtime clients, as reported by InsuranceNewsNet.com.
According to reports, Kau stole money from March 1998 to June 2003, but an investigation wasn’t launched until 2010 when her clients questioned the balance in their life insurance accounts.
Kau reportedly opened a post office box to receive mail for her victims after falsely telling the life insurance company that a fire destroyed her clients’ homes. Kau also requested that the life insurance company mail a checkbook, which would allow her clients to withdrawal from their life insurance account savings due to the “loss of their home.”
“Mrs. Kau was in a position of trust, and in cold calculation took money out of what were the retirement investments of two individuals,” Ryan Shinsato, a special deputy attorney general for the state Insurance Fraud branch, said in a statement. “She only stopped because there was no money left in the victims’ accounts.”
The insurance company did reimburse the clients for the money that was stolen.
In addition to 10 years in jail, Kau was ordered to make restitution payments.