DELAWARE - The Delaware Department of Insurance announced that former Delaware insurance agent Zenaida Nieves-Cordero has been sentenced to three years in prison and will also have to pay over $600k in restitution. She pleaded guilty to three counts of felony theft involving the misappropriation of client funds.
The Department says their investigation began after multiple reports of unexplained withdrawals and missing funds were received. DOI investigators started a detailed inquiry into business practices at Nieves-Cordero's former agency, Apple Insurance Inc., and uncovered a pattern of unauthorized withdrawals from clients' bank accounts. Her clients had entrusted Nieves-Cordero to withdraw funds solely for the purpose of paying insurance premiums, but evidence showed she diverted hundreds of thousands of dollars for her own personal use over several years.
According to the DOI, the majority of Nieves-Cordero's clients were Spanish-speaking residents of Kent and Sussex Counties. Department officials believe she deliberately targeted this vulnerable community, exploiting fears of talking to law enforcement and therefore making it less likely that victims would report her misconduct. The DOI adds that they acknowledge and commend those who overcame these fears and came forward anyway, allowing investigators and the Department of Justice to hold Nieves-Cordero accountable.
Insurance Commissioner Trinidad Navarro asked for and was granted a Court of Chancery conservatorship over Apple Insurance Inc. and Nieves-Cordero's business operations in order to ensure an orderly wind-down of the business. The DOI says after the conservatorship was approved, investigators found that Nieves-Cordero had already emptied the company's known bank account and continued accessing funds through undisclosed accounts, which the DOI says demonstrates clear efforts to evade accountability.
Commissioner Navarro highlighted the severity of Nieves-Cordero's crimes. He said that in nearly a decade as Commissioner and more than 26 years of combined law enforcement experience, he had never seen a case involving theft of this magnitude by an insurance agent. Commissioner Navarro emphasized that Nieves-Cordero's fiduciary responsibilities and her deliberate targeting of a community based on their heritage should be recognized as significant aggravating factors.
"This was one of the most severe breaches of trust by an insurance agent that our Department has ever encountered," said Commissioner Navarro. "Ms. Nieves-Cordero exploited her position and targeted a community that placed their confidence in her. I am grateful to the individuals who came forward despite their fears, allowing us to uncover the full scope of her actions and ensure she is held accountable. The Department remains steadfast in protecting Delaware consumers and upholding the integrity of our insurance marketplace."
In addition to her three-year prison term, Nieves-Cordero received additional levels of probation after her release. The Department says she was ordered to have no contact with victims and must pay $625,226.75 in restitution.
