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Judge sentences ex-Forsyth insurance broker to 4+ years in prison, $155K in restitution

Gavel
Posted at 1:35 PM, Jan 04, 2024
and last updated 2024-01-09 19:27:33-05

A former Forsyth insurance broker who admitted defrauding customers was sentenced to four years and three months in federal prison and ordered to pay $155,436 in restitution to victims, U.S. Attorney Jesse Laslovich announced Thursday.

Kileen Moria Hagadone, 57, pleaded guilty in August 2023 to wire fraud and aggravated identity theft for her activities with her business, Rosebud County Insurance Inc.

Through her business, Hagadone acted as an intermediary between customers and insurance companies. Federal prosecutors argued in court documents that she took payments from multiple clients and failed to send the money to the insurance company, instead spending it on personal expenses.

The wire fraud charge centered around her dealings with one of her largest customers, Chief Dull Knife College in Lame Deer. Hagadone collected nearly $200,00 from the college in insurance premiums over two years for policies that did not exist.

In July, Montana Insurance Commissioner Troy Downing secured a court order barring Hagadone from selling insurance. She was arrested later that month.

U.S. District Judge Susan P. Watters presided. The court allowed Hagadone to self-report to the U.S. Bureau of Prisons.

The Montana State Auditor, Commissioner of Securities and Insurance, FBI and Rosebud County Sheriff’s Office conducted the investigation.

Related: Forsyth insurance agent arrested by FBI
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