A Virginia insurance agent has agreed to plead guilty to federal wire fraud after prosecutors said he diverted more than $164,000 in client insurance premiums, leaving some individuals and businesses without coverage they believed had been secured.
Thomas Robert Hoyt operated Hoyt Insurance LLC in Accomac beginning in 2019 and served clients primarily on Virginia’s Eastern Shore. According to federal court records, Hoyt collected premium payments with the understanding that he would forward the money to insurers. Instead, prosecutors said he used some of the funds for personal expenses. The conduct caused policies to lapse and, in some cases, prevented coverage from taking effect at all.
Investigators also accused Hoyt of creating fraudulent certificates of insurance and other documents that made it appear customers had valid policies. About 16 clients reported paying premiums in full only to later receive cancellation notices from the carriers that were supposed to provide their coverage. Hoyt ultimately agreed to the permanent revocation of his insurance licenses and those of his agency.
The allegations illustrate a significant problem for claims professionals when policyholders believe they are insured but carrier records show no active coverage. Adjusters handling a loss under those circumstances may need to establish policy status, payment history, effective dates and communications among the insured, agent and carrier. Fraudulent certificates can add another layer of complexity, particularly when businesses or third parties relied on those documents as evidence of coverage.
One business cited in court records paid about $5,000 for truck insurance but discovered there was no active policy when the owner attempted to renew license plates. Another case involved a tree-service company that paid about $33,000 for multiple policies, some of which investigators said were never opened. Prosecutors also alleged that Hoyt provided a fraudulent certificate of insurance and used a fake signature on a premium-finance agreement.
The case extended beyond Hoyt’s customers. Prosecutors said he attempted to sell his book of business to a Maryland insurance agency without disclosing mounting complaints or an investigation by the Virginia Bureau of Insurance. The purchasing agency paid more than $27,000 as a down payment before discovering that numerous customer policies had lapsed or had never been placed because premiums had not reached insurers.
Hoyt agreed to plead guilty to one count of wire fraud. The offense carries a maximum prison term of 20 years. He also agreed to pay full restitution, with the final amount to be determined by the court, and accept a forfeiture judgment of at least $110,909.30. Sentencing is scheduled for Dec. 10, 2026.
For claims organizations, the case reinforces the importance of independently verifying policy records when questions arise about certificates, premium payments or coverage status. A document presented as proof of insurance may not resolve the issue when an intermediary has allegedly diverted premiums or fabricated coverage records.
