Publicly available records provided by the Texas Department of Insurance, as well as contemporaneous news reporting by the Insurance Journal, indicate that Chia Wang, a former Texas-based insurance agent, has been indicted on charges that he sold a fraudulent life insurance policy to an 87-year old customer.
According to the Department of Insurance, Wang conducted his fraud by offering the woman fake insurance documents, “convincing” her that she had bought a life insurance policy worth $400,000. In connection with this fake policy, he collected payments exceeding $192,000 from the customer over the course of two years. The customer discovered that she was the victim of a fraud, according to the charges, when she later called what she thought was her insurance provider to check whether she had missed a payment on the policy. By that point, according to the allegations, “she had already written nine checks to Wang.”
In connection with these allegations, Mr. Wang has been charged with “theft and misapplication of fiduciary property,” both of which were classified as first-degree felonies in light of the victim’s age. According to the Texas Penal Code, “misapplication of fiduciary property” is defined as the intentional, knowing, or reckless misapplication of property a person holds “as a fiduciary or property of a financial institution in a manner that involves substantial risk of loss to the owner of the property or to a person for whose benefit the property is held.” The code defines “fiduciary,” among other things, as a trustee, attorney, agent, or any other person acting in a fiduciary capacity; it defines “misapply” as dealing with property contrary to tha agreement under which the fiduciary holds that property, or contrary to a law prescribing the custody or disposition of that property.
Mr. Wang could face a prison sentence as long as 99 years and a fine of as much as $10,000.
Chris Davis, the Texas Department of Insurance’s Fraud Chief, said in a statement: “It’s a very sad story. The victim thought she was being responsible, taking care of her affairs, and instead someone was stealing a large portion of her life savings.”