COLUMBUS — Ohio Lieutenant Governor and Department of Insurance Director Mary Taylor announced former Hicksville insurance agent Greg Newton will serve three year’s probation and pay court costs for his role in an auto insurance fraud scheme. Judge Joseph N. Schmenk sentenced Newton in the Defiance County Court of Common Pleas on Friday, February 25, 2011.
A joint investigation by the Department and the Defiance County Prosecutor’s Office revealed that from December 2008 to February 2009, Newton submitted false automobile insurance claims totaling more than $13,000 on the behalf of his clients. The payments were issued directly to a local repair facility and then given back to Newton. These claims were submitted without the knowledge of Newton’s clients.
Newton was convicted on two counts of felony insurance fraud on January 7, 2011. He surrendered his resident agent insurance license on January 22, 2010.
Deron Eicher, the owner of the automobile repair facility, pled guilty for his involvement in this scheme and will be sentenced on April 5, 2011.
Ohioans who believe an agent is committing fraud or misconduct should call the Department’s Fraud hotline, 1-800-686-1527. Information about agent fraud and misconduct can be found on the Department’s web site, www.insurance.ohio.gov.