According to the Oklahoma Insurance Department, investigators with the department's anti-fraud unit provided information that helped Attorney General Drew Edmondson bring the embezzlement and computer crime charges against Sabrina Diane Sands, a former employee of Southlake Insurance agency of Gore.
Sands, 27, was recently charged in Sequoyah County District Court. She was booked into the Sequoyah County jail in Sallisaw Tuesday night. She has released on a $15,000 bond Wednesday afternoon, according to jail records.
Court records indicate that when Sands received cash or checks from customers, she allegedly converted them to her own use, disposing of the office copy of the receipt and leaving several customers without insurance coverage.
According to the state's complaint, Sands obtained more than $6,000 from her alleged scheme. Since the discovery, the Oklahoma Insurance Department has suspended Sand's license to conduct insurance business in Oklahoma. Court records reveal that the investigation was initiated based on a complaint by Peggy Sheffield, owner of Southlake Insurance Agency, alleging that Sands had been embezzling agency funds and using them herself.
The state insurance department's embezzlement investigation began in August after Sheffield first contacted the Gore Police Department over the possible mishandling of funds by a former employee, according to court records.
"I would encourage any person who has bought insurance from this person to call the Oklahoma Insurance Department immediately to find out if they may have been a part of this scam," Kim Holland, state insurance commissioner, said. "There are many cases we may never know about unless people come forward."
Holland said Sands is accused of converting policy holder premium payments to her own personal use. Three of the computer crimes allegations involve incidents where Sands allegedly pocketed the premium payments and then electronically submitted payments to the insurance company by debiting the Southlake account, causing a loss to the agency.
The remaining computer crimes allegedly involve three incidents in which Sands is accused of electronically securing insurance for herself or her husband, and debiting the premium payments from the Southlake account. The embezzlement counts represent four incidents where Sands allegedly accepted premium payments, but never purchased insurance for the policy holders, instead using the money herself.
Holland said if residents believe they or someone they know is a victim of insurance fraud or a scam, they can contact the Oklahoma Insurance Department at (405) 521-2991 or toll-free at 1-800-522-0071.
The insurance department is a state agency responsible for education and protection of the insurance-buying public and for oversight of the insurance industry in the state.
