The state Department of Commerce took action against 107 insurance professionals or businesses in the first half of 2011. The first 10 people in the following list had their insurance producer licenses revoked for allegedly violating state law. Among the most common infractions: embezzling funds and forging documents.
All on this list, with the exception of Cynthia Strand, agreed to allow the state to take action against his or her license. Some licensees may have agreed to the action without admitting to the allegations, which are listed here.
Cynthia T. Strand, Forest Lake, $420,000 fine
An administrative law judge found that Strand, while operating Strand Closing Services, Inc., pocketed about $1.3 million of her clients' money over 39 closing transactions. Strand also failed to pay 35 insurance premiums.
In addition to the revocation and fine, Strand was charged in Washington County with almost three dozen felonies, including theft by swindle, insurance fraud, aggravated forgery and racketeering. A plea agreement was reached earlier this year in which she pleaded guilty to three counts of theft by false representation and two counts of theft by swindle. She is scheduled to be sentenced on Friday.
James B. Crook, New Brighton, $10,000 fine
Crook diverted about $25,000 from nine real estate deals. A complainant told the state that Crook, a co-owner of Compass Title LLC in St. Anthony, stopped payment on a commission check. Crook allegedly claimed an employee embezzled the funds, but he later admitted he had taken the money. He also diverted company funds for personal use. Compass' license was revoked.
Gregory A. Caskey, Duluth, $5,000 fine
Caskey forged signatures, falsely told a client an application was signed in Minnesota, failed to identify himself as an insurance producer, sold an unsuitable annuity to a client and misrepresented terms of an annuity, including interest rate, surrender charges and early withdrawal provisions.
Katherine Stangle, Cloquet, $2,500 fine
Stangle failed to "maintain control over business funds and documents," according to her consent order.
Ruben A. Griess, Laguna Vista, Texas, $2,000 fine
Griess sold annuities to Minnesota residents that were not approved by the Department of Commerce, falsely stated that applications were signed in Wisconsin, failed to indicate on several annuity applications that they were replacements for existing ones and sold an unsuitable annuity.
Kimberly A. Van Raalte, Shannon, Ill., $1,500 fine
On three occasions, Van Raalte made up information regarding client's prior insurance coverage that included fake expiration dates, policy numbers, time periods and liability limits.
Richard A. Buteau, Woodbury
The state alleged that Buteau failed to ensure that the life insurance policy he sold a client was a suitable replacement for an existing one. The state also alleged Buteau tried to remedy the situation by submitting a fraudulent application and then failed to deliver the policy to the client within 30 business days.
Andrew J. Manning, North Mankato
Manning misrepresented coverage on a policy and accepted a policy that contained a forged signature.
Stephen A. Momberg, Faribault
Momberg's license was revoked in 2008 for failing to pay a judgment against him by an insurance company. The revocation was stayed on the condition that he paid $600 a month to the insurance company until the debt was paid off.
In December 2010 the insurance company notified the state that Momberg hadn't made a payment since April. The state lifted Momberg's stay, revoking his license.
Dawn M. Pila, Fargo, N.D.
Pila "knowingly and intentionally" converted money intended for insurance premiums to personal use.
Donald L. Knutson, Hastings
The teaching and education certifications of Knutson and his company, Excel Training, were permanently revoked after investigators discovered Knutson's company conducted classes that awarded continuing-education credits to insurance agents even though they didn't log the proper hours. As of Friday, 173 class participants have been publicly disciplined.
Hard Data digs into public records and puts a spotlight on rule breakers in Minnesota. Contact me at jfriedmann@startribune.com.
