Forsyth woman accused of defrauding customers through her insurance company, Rosebud County Insurance Inc., by spending client payments on personal expenses appeared in federal court on charges Monday.
Kileen Moria Hagadone, 57, pleaded not guilty to an indictment charging her with six counts of wire fraud and three counts of aggravated identity theft, said U.S. Attorney Jesse Laslovich.
The maximum penalty for wire fraud is 20 years in prison, $250,000 fine and three years of supervised release. The penalty for aggravated identity theft is a mandatory minimum two years in prison, consecutive to any other punishment, a $250,000 fine and one year of supervised release.
The indictment alleges that from about 2020 until April 2023, Hagadone devised a scheme to receive payments from customers but failed to transmit the funds to the insurance companies. Instead, Hagadone misappropriated the funds and spent the money on personal expenses, according to the indictment.
In some instances, Hagadone fraudulently withdrew the money for her own use from the company trust account. At other times, Hagadone improperly deposited customer payments into the company’s business account so she could use the money, according to the indictment.
To help conceal the thefts, Hagadone allegedly stole the identities of several customers by forging their signatures on third-party financing contracts. As a result of the alleged scheme, many customers had their insurance policies canceled without their knowledge and had to repay the insurance companies for policies they had already paid for.
Assistant U.S. Attorney Colin M. Rubich is prosecuting the case. The Montana State Auditor, Commissioner of Securities and Insurance, FBI and Rosebud County Sheriff’s Office conducted the investigation.
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