Probation and Restitution Ordered in Funeral Insurance Theft Case
A former Ohio insurance agent, Rhonda Chandler, must serve five years of probation for stealing more than $1.4 million from pre-need funeral insurance policies. The Ohio Department of Insurance (ODI) uncovered her fraudulent activities, which affected 14 funeral homes.
How Chandler Misused Funeral Funds
Chandler took insurance premiums meant for funeral expenses and trust settlements. Instead of allocating the money properly, she used it for personal and business expenses. The insurer responsible for these policies has reimbursed the funeral homes. Chandler now owes restitution to the insurer.
Investigation Uncovers Fraud
Former Ohio Insurance Agent: The case surfaced when a civil lawsuit accused Chandler of failing to transfer pre-need funeral funds to a funeral home. ODI then investigated her financial dealings. Chandler had worked with funeral directors to manage insurance policies and trusts, but instead, she diverted funds for personal gain.
ODI Director Judith L. French emphasized the importance of protecting consumers. “This case highlights our commitment to holding fraudsters accountable,” she stated.
License Revoked After Multiple Violations
Chandler’s insurance license was revoked in 2021 due to 25 violations, including:
- Failing to submit applications and insurance premiums on time
- Engaging in fraudulent, coercive, or dishonest practices
A November 2023 indictment charged her with felony theft (second-degree) and falsification (third-degree). At first, Chandler denied the allegations, but she later admitted her wrongdoing.
Sentencing and Restitution
Chandler has repaid $350,500 so far but must pay the remaining balance. The court sentenced her to five years of probation, during which she will remain under strict supervision.
For more updates on insurance fraud cases, visit JacobiJournal.com.
Read the full ODI statement here.