Florida insurance agent charged with falsifying $3 million worth of life insurance policies

Cledith E. Oakley III, owner of Asset, Insurance & Mortgage Services, Inc. ("AIMS") in Boynton Beach, Florida, has been charged with grand theft and insurance fraud for allegedly selling fraudulent life insurance policies.

The Division of Insurance Fraud of the Florida Department of Financial Services ("DFS") said in a statement that Mr. Oakley used his experience in the insurance industry to write fraudulent life insurance policies for himself and his two minor sons, and that he falsely inflated his income in order to obtain higher commissions. 

According to the DFS, an investigation conducted in coordination with the DFS' Division of Agent and Agency Services found that Mr. Oakley, a licensed insurance agent, executed an elaborate scheme in which he created a shell company, AIMS, and directed an employee to file false applications for life insurance policies in excess of $3 million.  The government alleged that, as the head of AIMS, Mr. Oakley received monetary commissions from the sale of the policies but purposefully neglected to pay the subsequent premium payments. When confronted by investigators, Mr. Oakley admitted to intentionally defrauding insurance companies for the sole purpose of receiving commission payouts, the government said.