Insurance agent sentenced for misappropriating client money

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The following is a news release from the state of Idaho Office of the Attorney General.

BOISE — Attorney General Lawrence Wasden has announced an eastern Idaho man was sentenced Monday, Jan. 29, for one count of Diversion or Misappropriation of Fiduciary Funds.

Sixth District Judge Stephen Dunn sentenced 38-year-old Alan C. Rzeszutko, of Pocatello, after he pleaded guilty in October.

Judge Dunn granted Rzeszutko a withheld judgment and placed him on probation for four years. The judge ordered Rzeszutko to pay $6,201 in restitution to Farmers Insurance, and $1,043 to the Idaho Department of Insurance. He must also pay a fine of $750 and court costs of $245. The court also ordered 120 days of discretionary jail time to be utilized by a probation officer.

An investigation revealed that while working as an insurance agent for Farmers Insurance in Pocatello, Rzeszutko began diverting customers’ premium payments to his personal accounts. While doing so, he also took steps to make sure clients were not receiving late notices on their accounts. Rzeszutko admitted his actions to investigators.

The state revoked Rzeszutko’s insurance license in 2016.

The case was investigated by the state Department of Insurance and prosecuted by Deputy Attorney General Nicole Schafer in the Attorney General’s Special Prosecutions Unit.

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