Former insurance agent pleads guilty to wire fraud

NORFOLK, Va. - A former insurance agent pled guilty today to wire fraud related to a scheme to pocket the premiums he was paid for policies he sold.

According to court documents, Thomas Robert Hoyt, 32, of Melfa, contracted with insurance carriers to sell the carriers' products to Hoyt's clients, serving as the intermediary between the insurers and the insured. For certain policies, Hoyt directed his clients to pay premiums to him and represented that he would forward those payments to the insurance carriers.

In response to complaints from Hoyt's clients, the Commonwealth of Virginia's Bureau of Insurance opened an investigation, contacting Hoyt in June 2021. On Sept. 9, 2021, Hoyt signed an agreement with the Bureau to voluntarily agree to the permanent revocation of the insurance licenses for himself and Hoyt Insurance.

Hoyt then sold his book of business to a small independent insurance agency. Hoyt falsely represented that all premiums due on policies that were part of the purchase by the agency had been paid to the respective companies providing insurance and that there were no pending investigations. The agency provided Hoyt with a $27,282.28 down payment. Upon review of the policies Hoyt had purported to sell, the agency discovered that a significant number had lapsed or were never in place because Hoyt had failed to pay the insurance carriers the required premiums.

In August 2022, the Bureau referred the matter to the U.S. Postal Inspection Service (USPIS). The USPIS investigation found that Hoyt had repeatedly assured his clients they had a valid insurance policy, collected premium payments from them, and then used those payments for his own personal use rather than providing them to the insurance companies. A review of Hoyt's bank accounts for the relevant time frame revealed that he diverted approximately half of the inflows to his business were diverted to personal use, including significant cash withdrawals. As a result of the scheme, Hoyt fraudulently obtained approximately $164,345.

Hoyt is scheduled to be sentenced on Dec. 10 and faces up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Theophani K. Stamos, First Assistant U.S. Attorney for the Eastern District of Virginia, and Damon E. Wood, Inspector in Charge of the Washington Division, U.S. Postal Inspection Service made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea.

Assistant U.S. Attorney Rebecca Gantt is prosecuting the case.

Related court documents and information are located on the website of the District CourtLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. for the Eastern District of Virginia or on PACERLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. by searching for Case No. 2:26-cr-74.