Former Ohio insurance agent Rhonda Chandler is now facing the consequences of her illicit actions, having been sentenced to five years of probation on Feb. 7, as announced by the Ohio Department of Insurance. If Chandler violates her probation agreement, she will be imprisoned for three years. This sentence is the fallout from her pleading guilty to felony theft, involving more than $1.4 million taken from numerous victims. According to a news release by the Ohio Department of Insurance, Chandler has already paid $350,500 in restitution and is ordered to pay the remaining amount.
Investigations conducted by the Ohio Department of Insurance uncovered that Chandler, through her businesses, Senior Marketing Consultants and Chandler Insurance Agency, managed to steal and misappropriate funds deceptively. These were premiums collected for pre-need life insurance policies designed specifically to cover funeral expenses for the policyholder. "Protecting Ohio consumers is our top priority, and this case shows our commitment to holding those who abuse the trust of consumers accountable," stated Judith L. French, the director of the Ohio Department of Insurance. Chandler's fraudulent actions were reported to have negatively impacted 14 Ohio funeral homes and their clients.
Chandler's scheme was initially exposed when a civil lawsuit was filed against her for failing to deliver pre-need funeral funds to a funeral home, which she was responsible for placing in insurance or trust products. Subsequently, the insurer that had issued the policies compensated the affected funeral homes, and Chandler's restitution payments are now directed at reimbursing the insurer for those outlays. The department revoked Chandler’s insurance license in October 2021 after pinpointing 25 counts of agent misconduct, including failure to submit applications and premiums on time and engaging in fraudulent practices.
Significantly troubled by the ordeal, in November 2023, Chandler was indicted on charges of theft, a second-degree felony, and falsification, a third-degree felony. After initially denying the allegations, she eventually confessed her misconduct. Ohioans who have any inkling about insurance professional misconduct or insurance fraud are strongly encouraged to report such suspicions. The Ohio Department of Insurance has made provisions for such reports to be made by calling 800-686-1527 or through their website, ensuring anonymity and legal protection for those who make the reports, barring acts of fraud or bad faith on the reporter's part.
