For Immediate Release: December 23, 2010
Former Wake County Insurance Agent Accused of Pocketing Premiums
RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Douglas Lee Borsum, Sr., 62, of 101 Holly Park Drive, Holly Springs. He is charged with 13 counts of obtaining property by false pretense.
Department of Insurance criminal investigators allege that Borsum, while working as an insurance agent at the Insurance Group of North Carolina in Cary, sent invoices to customers asking them to remit premium payments to him, deposited the payments into his account without fully remitting them to the insurance companies, and issued false certificates of insurance to the customers. Investigators found that many clients paid Borsum in cash and later discovered they did not have insurance coverage. Borsum is accused of pocketing $52,167.36 in premiums.
The alleged improprieties were discovered and reported to the Department of Insurance by an agent from Vic Fisher Insurance Agency who had been planning on purchasing Borsum's book of business.
Borsum was arrested on Dec. 22 in Wake County and placed under a $60,000 secured bond. He surrendered his insurance license to the Department of Insurance in November 2010.
The Department of Insurance employs 20 sworn law enforcement officers dedicated to investigating claims of insurance fraud. So far in 2010, these criminal investigators have seen more than 362 cases successfully closed with more than $20.4 million in restitution and recoveries, 71 criminal convictions and 111 arrests.
An estimated 10 cents of every dollar paid in premiums goes toward the payment of fraudulent claims. To report suspected fraud, contact the Department of Insurance Criminal Investigations Division at 919-807-6840. Callers may remain anonymous. Information is also available at www.ncdoi.com.