Former California agent pleads guilty to 90 counts of insurance fraud

A former insurance broker has pleaded guilty to a number of charges, including insurance fraud for collecting premiums without placing coverage.

Karen Marie Dondanville, 56, a former broker in Mission Viejo, pleaded guilty to 90 charges, including auto theft, insurance fraud and forgery.

According to the California Department of Insurance, over an eight-year period, Dondanville collected premiums from 32 victims and failed to place insurance coverage, resulting in $183,047 in stolen payments.

Dondanville was ordered to pay $335,349 in restitution to the victims. She was sentenced to three years of formal probation and 33 years in prison if probation is violated.

CDI reportedly filed several consumer complaints against Dondanville while it was operating Streamline Insurance Services and Broadstreet Insurance Services. In addition to trading insurance without a license, she tried to cover up the theft by giving customers forged documents as proof of insurance, according to CDI.

Dondanville’s actions also resulted in several policies being canceled for non-payment. Her 32 victims were left without insurance for more than 10,000 collective days, according to CDI.

Two cease and desist orders were issued against Dondanville when consumers who purchased insurance from it filed complaints, which came after CDI had already revoked its license on November 6, 2019.

The Major Fraud Unit of the Orange County Prosecutor’s Office prosecuted the case.

TOPICS
California Agency Fraud