February 22, 2025 | JacobiJournal.com — 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.
This case of insurance fraud underscores the risks consumers face when entrusted funds are misused by licensed professionals. Regulators noted that Chandler’s actions not only violated industry rules but also caused financial harm to funeral homes that depended on those funds to serve grieving families.
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.
Industry observers point out that this form of insurance fraud is particularly damaging because it undermines trust in pre-need funeral policies, which are designed to ease financial burdens on families during times of loss. Experts stress that stricter oversight of agents handling these funds is critical to prevent similar abuses and to protect both funeral providers and consumers.
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.
The investigation further revealed that Chandler’s misconduct had been ongoing for several years, with multiple instances where she concealed the true status of client accounts. Regulators noted that her ability to operate undetected for so long exposed weaknesses in monitoring practices, prompting calls for stronger safeguards in the oversight of funeral-related insurance policies.
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Chandler’s insurance license was revoked in 2021 due to 25 violations, including: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.
Read the full ODI statement here.
FAQs: Ohio Insurance Fraud
What was the Ohio insurance fraud case involving Rhonda Chandler?
Rhonda Chandler, a former insurance agent, was sentenced for Ohio insurance fraud after diverting $1.4 million in funeral insurance funds for personal use.
How much restitution is owed in the Ohio insurance fraud case?
Chandler has repaid $350,500 but must continue paying restitution to cover the $1.4 million loss from the Ohio insurance fraud scheme.
How did investigators uncover the Ohio insurance fraud scheme?
The Ohio Department of Insurance investigated Chandler after a civil lawsuit revealed she failed to transfer pre-need funeral funds, exposing the fraud.
What penalties did the Ohio insurance fraud case result in?
The court sentenced Chandler to five years of probation, strict supervision, and ordered restitution for losses caused by her Ohio insurance fraud scheme.
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