Former Oakdale Insurance Agent Arrested and Issued C&D, Insurance
Commissioner Donelon Says
Released: December 27, 2006
A former Oakdale insurance agent has been arrested and issued a cease and desist
order on charges of fraud and misappropriation of funds, Commissioner of Insurance
Jim Donelon announced today.
John Craig Welch, age 40, was arrested this afternoon by the State Police Insurance
Fraud Unit and booked into the Bossier Sheriff Correctional Facility in Benton on
charges of felony theft. At the same time, members of the Department of Insurance
Fraud Section ordered him to cease and desist from engaging in the business of insurance.
An investigation and audit found that Welch misappropriated premiums and other funds
from his agency totaling over $20,000. It is alleged that after Welch collected
premiums from policyholders and issued them a receipt, he pocketed the money and
generated an agency check to pay the insurance company. In addition, he would receive
bonus checks from the agency for the premiums he collected. No policyholders were
believed to have been harmed by his actions, as all premiums were paid to the insurance
companies where policies had been issued.
Department of Insurance records show that Welch held a Life & Health license
from January 1998 until May 2002 and a Property & Casualty license from February
1997 until May 2003. He was issued a solicitor license in July 1993 that was later
changed to an agent license.
Commissioner Donelon urges consumers who feel uneasy about any insurance-related
transactions with an agent or a company to call the Department of Insurance Fraud
Section at 225-342-4956 or 1-800-259-5300. If callers don’t want their names
used, they can request that their involvement be kept confidential.