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AG Horne Announces Insurance Agent Sentenced To Prison For Diverting Premiums

(Phoenix, Ariz. – Thursday, April 19, 2012) -- Attorney General Tom Horne today announced that 33 year-old Jeffery Ray Capshaw of Flagstaff was sentenced today in Maricopa County Superior Court to 3 years in prison for Forgery, a class 4 felony as a result of a plea agreement with the State. Capshaw was indicted for Insurance Fraud, Theft and Forgery for collecting payments for insurance premiums after his insurance license had been revoked and providing a forged certificate of insurance. 

Capshaw's insurance license was revoked by the Arizona Department of Insurance on March 8, 2011. Between April 10, 2011 and June 14, 2011, after Capshaw lost his license, he continued to collect premiums from small business owners but did not forward the money to insurance companies so no policies were ever issued. In one instance, when asked by the business owner for a copy of their policy, Capshaw created a forged Certificate of Insurance. None of the business owners suffered a loss during this time period. 

"Arizonans need to be confident that their insurance providers operate with integrity and that the regulatory system protects consumers," Horne said. "The individual sentenced in this case violated that trust for his own personal gain and was fortunately brought to justice. I am very pleased with the efforts of the Department of Insurance working with my office to bring this prosecution to a close." 

Capshaw was also ordered to pay total restitution of $29,838.99 to Dawn Mickelson of Mickelson Construction, Ynez Cross of Helping Hearts, John Merell of Golden Shore General Store and Christine Wijcik. 

This matter was handled by Assistant Attorney General Beverly Rudnick. This case was investigated by the Arizona Department of Insurance Fraud Unit.

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