Former Insurance Agent Convicted for Fraud After Stealing Nearly $200,000 in Premiums

Karen Marie Dondanville, a former insurance broker from Mission Viejo, was convicted of 90 counts including insurance fraud, grand theft, forgery, and financial elder abuse. Over the span of eight years, Dondanville stole $183,047 in premium payments from 32 clients by collecting their insurance payments but failing to place proper coverage, leaving them uninsured.

She provided her victims with falsified insurance documents to cover up her actions. An investigation revealed significant financial harm, including a $100,000 loss for one victim whose property was uninsured.

Dondanville has been sentenced to three years of probation and ordered to pay $335,349 in restitution, with a 33-year prison sentence pending for probation violations. The case was prosecuted by the Orange County District Attorney’s Office Major Fraud Unit.