A former Orem insurance agent has admitted he misused clients' insurance premiums.
Kipp G. Wilkinson, 36, pleaded guilty Monday in 4th District Court to one count of unlawful dealing of property by a fiduciary and one count of diverting trust funds, both second-degree felonies. Ten other charges against him were dropped in a plea arrangement with the Utah Attorney General's Office.Wilkinson was an agent with the Leavitt Insurance Group between 1983 and 1995, when, according to a court affidavit, he deposited into two checking accounts premiums paid by clients and checks issued by insurance companies to clients.
He allegedly withdrew funds from the accounts to pay personal expenses. Wilkinson's employer said the company was unaware of the two accounts.
When officials from the Leavitt Group discovered the accounts in April 1995, they conducted an audit and discovered a shortfall in premium payments of $233,000. The affidavit says the company paid the shortfall to prevent clients from losing insurance coverage.
Assistant Utah Attorney General David Gardner said they will seek restitution in that amount. Wilkinson's attorney, Ed Brass, said they will dispute the amount of restitution.
Gardner said his office agreed to drop the 10 other charges in exchange for the plea because Wilkinson will likely face the same penalty as if he had been convicted on all the charges. He could face a sentence of one to 15 years in prison and a fine of $10,000 on each count.
Sentencing is set for Jan 4.
Wilkinson has also had his license revoked by the Utah Department of Insurance.