Insurance salesman arrested for fraud
A Muscle Shoals insurance salesman who had an office in Red Bay has been arrested for fraud and financial exploitation of an elderly person.
The arrest was announced by Brian C.T. Jones, district attorney for the 39th Judicial Circuit, Limestone County; James Ridling, commissioner of the Alabama Department of Insurance; and Joseph Borg, director of the Alabama Securities Commission. Ronald “Ronny” Warren Powell, age 55, of Muscle Shoals, was arrested following indictment by the Limestone County Grand Jury in August; he subsequently surrendered to authorities, who are now investigating whether additional charges against Powell might be warranted.
Powell was indicted on one count of insurance fraud first degree and one count of financial exploitation of an elderly person first degree. Both charges are Class B felonies punishable by possible imprisonment of two to 20 years imprisonment and up to a $30K fine per charge upon conviction.
The indictment and arrest of Powell alleges that he did, with the intent to defraud or conceal material information about the embezzlement, theft, or conversion of monies and/or premiums related to the transaction of the business of insurance, cause a loss in excess of $1,000. The indictment also alleges that Powell committed the crime of financial exploitation of an elderly person involving property exceeding $2,500 in value.
State investigator Jimmy Collier said that, with Powell’s office in Red Bay, investigators are asking anyone who believes that they too have been defrauded to contact either the Alabama Securities Commission or the Alabama Department of Insurance.
Jones, Ridling and Borg complimented the agents and employees of their respective organizations for their “outstanding teamwork and collaboration in the investigation of the case.”
Jones, the Alabama Department of Insurance and the ASC caution potential investors and persons interested in purchasing insurance products to thoroughly scrutinize and research any investment or insurance-related opportunity or offer. Contact the Alabama Department of Insurance with inquiries concerning the offer or sale of any insurance related opportunity or product. Contact the ASC with inquiries concerning securities broker-dealers, agents, investment advisers, investment adviser representatives, financial planners, registration status of securities or debt management programs, to report suspected fraud or to obtain consumer information.
The ASC provides free investor education and fraud prevention materials in print, online and through educational presentations upon request.
People who think they too might have been defrauded are asked to contact either the Alabama Securities Commission, 334-242-2984 or 1-800-222-1253, or the Alabama Department of Insurance, 334-269-3550.
