Based on an investigation by the Department of Insurance Fraud Unit, prosecutors from the Arizona Attorney General’s Office have successfully obtained an indictment of Diana Lee Greene, a licensed insurance agent, accused of selling fraudulent surety bonds. She allegedly sold the phony bonds to victims in several states. Ms. Greene marketed the bonds through her insurance agency, International Bond Source, L.L.C.
An investigation by the Arizona Department of Insurance Fraud Unit and the Arizona Attorney General’s Office led to the indictment of this Arizona insurance agent. Referrals from representatives of local surety bond companies ignited this investigation. “This is a prime example of how the insurance industry, working together with insurance regulators, can stem the flow insurance fraud,” said Fraud Unit Chief, Terry Cooper. “We are very appreciative of the extensive cooperation we received from the surety industry and insurance regulators in other states in this matter.”
This criminal investigation uncovered evidence of Greene selling fictitious and fraudulent surety bonds. In some cases, Ms. Greene is purported to have collected premiums for bonds but made no application with any insurance company for a bond purchase, instead she kept the premiums and gave her victims phony documents that appeared to substantiate the bond purchase. In others, she allegedly sold bonds to customers from insurers not licensed to transact insurance in Arizona. Claims of victims in this case are estimated at approximately $1.5 Million.
Greene was indicted by the Arizona Grand Jury on May 16, 2003. She is charged with three counts each of Felony Theft and Fraudulent Schemes. In addition to the selling illegitimate bonds, Ms. Greene was also indicted on charges of misappropriating premium payments intended for the purchase of valid bonds.
Ms. Greene has been a licensed insurance agent in Arizona since January 2000. The Department of Insurance summarily suspended the insurance licenses of Ms. Greene and her agency,