An Eagan insurance agent faces felony charges for allegedly filing and profiting from fake insurance policies.
Dewitt Alonzo Davison, 32, was charged in Dakota County court on Aug. 20 with felony theft by swindle — aggregating.
According to the criminal complaint, Davison filed numerous fake insurance applications using either fictitious or relatives’ names to collect the commission.
When an agent sells a policy to a new client, the policy holder can defer payment on the new policy for up to three months. However, the agent is able to receive up to 40 percent advanced commission within two to three business days after the application is filed, regardless of the policyholder’s chosen payment date.
Numerous applications filed by Davison allegedly used three of the same bank account numbers to pay for the policies, causing the insurance company to become suspicious.
In January 2011, the company contacted the Minnesota Department of Commerce, which investigated the matter.
The department’s investigation allegedly revealed that Davison, who worked for the company as an agent since July 2010, received $32,088.78 in commission on 88 applications for 22 policyholders between Sept. 3, 2010, and Oct. 17, 2010. However, 19 of those policyholders didn’t exist and the two who did exist didn’t know about the policies. Only one application was from a valid customer.
On all 21 fraudulent applications, Davison allegedly forged the signature of the purported applicant.
In an interview with Department of Commerce investigators, Davison allegedly admitted to filing the fraudulent applications and said he would be willing to repay the money.
Davison, who worked from home, also allegedly admitted to using his father’s and sister’s name and forging their signatures on some of the applications.
When asked, Davison said he didn’t know the exact amount of commission he received for the fake policies. He allegedly told investigators he was “having money issues” and “got in over his head.”
Davison has prior convictions for petty misdemeanor theft and misdemeanor domestic assault in 2009 and 2008, respectively.
If convicted, Davison faces up to 10 years in prison.