Ohio Insurance Agent Sentenced for $1.4 Million Fraud Scheme

Rhonda Chandler, a former Ohio-licensed insurance agent, has been sentenced to five years of probation, with the possibility of three years in prison if she violates her probation terms. Chandler pleaded guilty to felony theft for misappropriating over $1.4 million through her businesses, Senior Marketing Consultants and Chandler Insurance Agency. So far, she has repaid $350,500 and has been ordered to pay the remaining amount.

An investigation by the Ohio Department of Insurance found that Chandler stole funds meant for pre-need life insurance policies, commonly used for funeral expenses. Instead of properly allocating these payments, she diverted the money for personal and business use, impacting 14 funeral homes across Ohio. The insurance company responsible for issuing the policies has reimbursed the affected funeral homes, while Chandler’s restitution payments will be directed to the insurer.

Chandler’s fraudulent activities surfaced when a civil lawsuit was filed against her for failing to provide funeral funds. Further investigation revealed multiple violations, leading to the revocation of her insurance license in 2021. She was later indicted in November 2023 on felony charges of theft and falsification. Initially denying the allegations, Chandler ultimately admitted to the misconduct.

Ohio residents are encouraged to report suspected insurance fraud to the Ohio Department of Insurance. Reports can be submitted anonymously, and legal protections are in place for those who report in good faith.