Released: May 27, 2005

Lake Charles - Department of Insurance investigators, accompanied by law enforcement, today shut down the fourth insurance producer this week. The Lake Charles producer was charged with alleged misappropriation of funds, Commissioner of Insurance Robert Wooley said.

Michelle Pappillion, 31, was arrested by the State Police Insurance Fraud Unit and booked into Calcasieu Parish Jail. At the same time, she was served a cease and desist order by Department of Insurance Fraud Unit investigators. The c&d alleges that Pappillion violated the Louisiana Insurance Code by failing to timely remit premiums she had collected and for unlawfully obtaining and depositing for her own use two "cash surrender" insurance company checks that should have gone to two of her policyholders.

Department of Insurance records show that Pappillion was licensed to sell property and casualty insurance from April 2003 to May 2005 and licensed to sell life & health insurance from September 2002 to May 2004. Department records show her address as 1018 Royal St., Lake Charles, LA 70607.

"The vast majority of the state's more than 60,000 insurance producers are honest, forthright individuals who are a pleasure to do business with," Wooley says. "But, as this week's shutdown of four more producers shows, there are some who will rip off our people if they are not put out of business. Anybody who feel uneasy about an insurance-related transaction with any producer or insurance company should call the Department of Insurance Fraud Unit at 225-342-4956 or, statewide, at 1-800-259-5300. If callers don't want their names used, they can ask that their involvement be kept confidential."

"We are stamping out fraud, but we need the public's help to get the job done," Wooley said.

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