Attorney General Jim Hood issued the following statement.
Central Mississippi Insurance Agent Going to Prison for Embezzlement
Charles Myrick Winstead—an insurance agent from Terry—will serve 10 years in prison for embezzling $117,863.74 from a customer and converting the money for his own use, announced Attorney General Jim Hood.
Winstead, 54, pleaded guilty Monday to one count of embezzlement. Madison County Circuit Court Judge William E. Chapman III sentenced him to 20 years in the custody of the Mississippi Department of Corrections, with 10 years to serve and 10 suspended. Upon his release, he will be placed on supervised probation for five years. Winstead must also pay $121,811.56 in restitution to Nationwide Insurance Company as well as court costs.
While employed as an insurance agent, Winstead advised one of his customers to cash in an insurance policy with a face value of $117,863.74 and then purchase a different policy. The customer took his advice by cashing the policy and turning the funds over to him. Winstead deposited the money into his own personal bank account and spent the money instead of submitting it to Nationwide Insurance Company. Upon learning of Winstead's actions, Nationwide reimbursed the customer $121,811.56, which represented the principal and interest.
7 comments:
I went to high school with him......always was a loser.
Didn't he work hand in hand with the boisterous Nationwide Agent from Brandon known for his scathing emails?
WTH was this guy thinking? Usually the scheme requires a little more guile. This is the insurance equivalent of robbing your own bank while not wearing a mask.
WTF? Did he intend to kill the man who trusted him with the money or did he actually think the man would never know he did not have a policy? Somebody is on drugs here.
When I first saw this I thought maybe the Madison County guy who was withholding premiums for personal use had been brought to justice. Won't ever be a conviction up that way.
This is newsworthy precisely because it is rare. There is a 100% expectation of being caught, and as the company appointed this agent, they are absolutely on the hook, barring any fraud by the customer. I have heard of this three times in 35 years in Mississippi, though I'm sure it happens more than that. Your insurance commission protects you.
If anybody is stupid enough to fork out money for insurance coverage and doesn't have enough sense to expect to receive a policy in-hand deserves to be hornswaggled.
And any agent who pockets premium payments thinking he can get away with it deserves a meat-cleaver to the forehead.
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