Unlicensed Insurance Agent Arrested on Suspicion of Fraud

An unlicensed Oceanside insurance agent was behind bars today on suspicion of defrauding clients out of more than $300,000, authorities said.

Howard Thomas Jackson, 59, was arrested Wednesday on six felony counts of grand theft, embezzlement and theft of fiduciary funds, according to the California Department of Insurance.

During an investigation prompted by a complaint filed in August 2011, the state agency determined that Jackson allegedly had diverted two of his customers' funds to his own use without their knowledge or consent, CDI spokesman Dave Althausen said.

Investigators say Jackson persuaded the clients to refinance their homes and put the resulting proceeds into life-insurance policies and an investment company associated with him.

The two San Diego-area residents gave Jackson money from their refinanced mortgages to pay the premiums of the policies and investments they believed they were buying. Instead, Jackson only paid the first-year premiums on the policies and used the remainder of the funds for his personal and business expenses, according to investigators.

The victims also made monthly payments to Jackson on the understanding that the proceeds would go toward additional investments. Jackson allegedly diverted that money for his own purposes as well, Althausen said.

Jackson had held two insurance-broker licenses, but one expired in 1995 and the other in 2009, according to the state agency.

If convicted on all counts, Jackson could face up to five years in state prison along with penalties, fines and restitution orders.   Any other clients of Jackson's who believe they may have been victimized by him are asked to call CDI criminal investigator Kevin Oden at (909) 919-2239.

—City News Service

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