Cape man's insurance license not renewed after alleged fraud

Paul Bollinger of Jackson was being treated for cancer in August 2007 when he gave $80,000 to his insurance agent, Keith L. Monia.

Bollinger said he intended for the money to be invested in an annuity plan that Monia suggested. He told the state of Missouri in a December 2010 complaint against Monia that he never saw the annuity or his money, again.

Monia told the Missouri Administrative Hearing Commission he believed the money was a gift. He and Bollinger had become close during the execution of other policies and Bollinger decided to help him during financial difficulties he was having, he said Monday.

"I felt like a son," Monia said.

Last month, the commission refused to renew Monia's insurance license. The commission found he had "inappropriately withheld, misappropriated and converted Bollinger's money pursuant to Monia's work as an insurance agent by the use of fraudulent and dishonest practices and was not trustworthy."

The commission found Monia's testimony that the money was a gift "not credible."

"I was a fool," Bollinger, now 71, said in the hearing.

'His main interest'

When Bollinger met Monia, the agent seemed especially personable, Bollinger said. He spent numerous evenings at Bollinger's home, sometimes showing up unannounced.

"Like he almost didn't have anything else to do," Bollinger said. "At that time, I think I was probably his main interest."

When he was presented with the opportunity in August 2007 to invest in an annuity with American Equity Investment Life Insurance Co., Bollinger said he had grown to trust Monia, unaware that Monia's license to sell insurance products was under scrutiny.

That same month, the Director of Insurance refused to renew Monia's license and sought disciplinary action against him in connection with complaints that Monia forged a signature on an annuity application and misrepresented the terms on another.

Monia's license was later retroactively reinstated because the commission found "evidence of bias against Monia in the investigation."

However, during the time that he was unlicensed, Monia presented Bollinger's application to American, according to hearing documents. American refused the policy because they could not verify Monia's license and returned the $80,000 by check to Bollinger. Monia obtained the check from American, according to hearing records.

Monia has a different version of events. He said Bollinger wrote the annuity application himself while Monia was out of town on a trip with the Boy Scouts. The application was rejected because it wasn't complete and the producer number and phone number were incorrect, Monia said. The $80,000 was returned to Bollinger, he said, who then decided to give the money to Monia.

"Why he gave me that money, I don't know. Yes, I was financially having a rough time," Monia said. He first refused the money, but Bollinger convinced him to take it, Monia said.

But Bollinger said that Monia, check in hand, told him American refused to underwrite the policy and offered an alternative investment option with Washington National Insurance Co. that he said was better. Bollinger agreed to endorse the check over to Monia and that was the last Bollinger saw of his money, he said. Looking back, Bollinger said, he has wondered how he could have made that mistake.

"I was under a lot of duress ... going through the cancer and it was just hard to keep your head up and keep going every day," Bollinger said. "I was ripe for picking."

Bollinger's cancer is in remission.

Financial difficulties

Monia was having financial difficulties at the time. He filed for bankruptcy in April 2007, listing 42 creditors of record with claims against him of more than $300,000. Nearly all of the $80,000 taken from Bollinger was spent within days, according to check registers assembled as evidence by Bollinger's attorney, Adam E. Hanna of Bradshaw, Steele, Cochrane & Berens LC. Monia also owed the IRS $500,000, Hanna said.

Unknowing, Bollinger said he kept investing with Monia, who collaborated with a licensed agent, Leslie Sadler, to purchase another annuity for him with Washington National. Hanna said Monia split a commission of more than $7,200 with Sadler. Monia said he didn't get the commission until after his license was reinstated.

Attempts to reach Sadler were unsuccessful. The phone number listed with her license is routed to Farmers Insurance Agency and a representative there said Sadler is no longer affiliated with them.

Suspicion

Never having received documentation about the first annuity despite repeated requests, Bollinger began to become suspicious. He eventually called Washington National and was told that only one policy, the one that Sadler helped Monia secure, was listed with them.

Although uneasy and becoming increasingly upset, Bollinger said he waited to file a criminal complaint against Monia. Once he did, the statute of limitations had expired. Bollinger filed a civil case in October 2010, which is set for jury trial July 30.

Even though they think they will win, Bollinger and Hanna don't think he will get his money back.

"I don't have any doubt that we are going to get a judgment against him. I feel more confident about that than anything else in the world. But it might not be worth the paper that it's written on," Hanna said.

In the meantime, Monia holds a valid real estate license.

Janet Carter with the Missouri Real Estate Commission said participation in unfair or unethical business practices could jeopardize an agent's license, as the commission is a consumer-protection agency.

"We would need a complaint filed," Carter said.

David Owen, public information specialist for the Missouri Department of Insurance, Financial Institutions and Professional Registration said the department provides online services so consumers can research agents, agencies or particular insurance products. Although his license was refused by the director, Monia is free to apply for a new one, according to state law, Owen said.

Owen said state law prohibits paying a commission to an unlicensed agent and prohibits an unlicensed agent from collecting commission. An insurance producer who violates Missouri's insurance laws may be subject to discipline, he said.

"The Department of Insurance encourages any insurance producer or consumer who has concerns or complaints regarding an insurance producer or someone engaging in the business of insurance to contact the department by calling our Insurance Consumer Hotline at 800-726-7390 or visit insurance.mo.gov," Owen said.

Monia said he has been unfairly treated by the state and doesn't know if he is going to try to get his license again. He said Bollinger is a "golddigger."

"The DIFP does not properly investigate. Period. They want a conviction," Monia said. "All they hear is the public."

Bollinger hopes his story will serve as a cautionary tale to others who might be caught up in a similar situation. If suspicious, he recommends people investigate, either through state resources available or by asking another trusted agent.

salderman@semissourian.com

388-3646

Pertinent address:

Jackson, Mo.

Cape Girardeau, Mo.