MELFA, Va. - An Accomack County insurance agent has agreed to plead guilty to federal wire fraud on Friday after admitting he collected insurance premiums from clients, pocketed funds, and left some customers without coverage they believed they had.
According to federal court documents obtained by WBOC, Thomas Robert Hoyt, of Melfa, operated Hoyt Insurance LLC in the Town of Accomac beginning in 2019. Prosecutors say Hoyt served businesses and individuals, primarily on the Eastern Shore, and acted as a go-between for clients and insurance carriers.
From about February 2019 through November 2021, Hoyt directed some clients to pay insurance premiums to him with the understanding that he would forward the money to insurance companies, according to court records. Instead, prosecutors say he diverted some of those funds for personal use, causing policies to lapse or, in some cases, never take effect. Investigators also said Hoyt created fraudulent insurance certificates and other documents to make it appear clients had valid coverage.
A review of Hoyt's bank accounts found that about half of the money flowing into his business was diverted to personal use, including through significant cash withdrawals, according to an agreed statement of facts submitted in federal court on Aug. 21. Authorities say Hoyt fraudulently obtained at least $164,345.42 and later repaid victims or insurance companies at least $53,436.12 after complaints and an investigation began.
The Virginia Bureau of Insurance began receiving complaints in April 2021. Around 16 clients ultimately reported that they had paid Hoyt their premiums in full but received cancellation notices from the insurance carriers that were supposed to hold their policies. Hoyt later agreed to the permanent revocation of his insurance licenses and those of Hoyt Insurance.
Court documents detail several examples. The owners of an Eastern Shore and Virginia Beach tree-service company reportedly paid Hoyt about $33,000 for several insurance policies. Investigators say some of those policies were never opened. The filing also says Hoyt sent a fraudulent certificate of insurance and executed a premium-finance agreement containing a fake signature.
Another business owner paid Hoyt $5,000 for truck insurance but later learned he had no active policy when he tried to renew his license plates, according to the statement of facts. The man demanded his money back, but Hoyt told him he did not issue refunds and later stopped responding to him.
Federal prosecutors also say Hoyt tried to sell his book of business to a small Maryland insurance agency while failing to disclose the mounting client complaints and the Virginia Bureau of Insurance investigation.
In July 2021, Hoyt told the company's president his client list was "super clean and profitable" and sought $75,000 for the business. The purchase agreement also represented that premiums had been paid and that there were no pending investigations affecting the sale. The Maryland company paid Hoyt just over $27,000 as a down payment.
After the sale, the company discovered that numerous policies had lapsed or were never in place because required premiums had not been paid to insurers. Court documents say the actual value of Hoyt's book of business was less than two-thirds of what he had represented.
A July 2021 text message to the Maryland company's president serves as the basis for the federal wire fraud charge because Hoyt sent it from Virginia to Maryland.
Under the plea agreement, Hoyt will waive indictment and plead guilty to one count of wire fraud.
Wire fraud carries a maximum sentence of 20 years in prison, up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss, according to court documents.
Hoyt has also agreed to pay full restitution to victims, with the final amount to be determined by the court, and to a forfeiture judgment of at least $110,909.30. He agreed to turn over $11,943 already held in escrow by his attorney.
Hoyt’s sentencing is currently scheduled for Dec. 10, 2026.
