Insurance Commissioner Poizner Announces Sentencing Of Former Agent For Scamming Victims Out Of More Than $23,000

Molly
December 2, 2008 1:43 PM

Insurance Commissioner Steve Poizner today announced that a former insurance agent has been sentenced to three years probation after stealing more than $23,000 from customers.  In addition to his three-year probation sentence, John Dallas Butler, 36, of San Marcos, was also ordered to pay $938 in fines.

In October, Butler pled guilty to theft of fiduciary funds, admitting that he unlawfully diverted more than $400 in fiduciary funds entrusted to him as an insurance agent.  As part of the plea, Butler agreed to pay more than $23,000 in restitution to nine victims.  Butler was sentenced to three years probation and ordered to pay $938 in fines on November 19.    

Butler previously operated First Choice Insurance Services, Inc., in Oceanside, where he sold automobile, homeowners, workers compensation and liability insurance.  A Department of Insurance investigation into Butler's business revealed that he repeatedly failed to remit insurance premium payments to insurance carriers, pocketing the money and leaving consumers exposed to potential losses.  The Department of Insurance issued an Order of Immediate Suspension on July 3, barring Butler from selling insurance.

The San Diego District Attorney's Office prosecuted this case.