SAN DIEGO (CN) - Insurance agent Michael Philpot and five cronies defrauded his employer, the North American Company for Life and Health Insurance, of "millions of dollars" in commissions and bonuses by secretly paying bogus customers to buy universal life policies, sometimes paying the first premium themselves, to collect the full commission and bonuses, knowing the policies will lapse for nonpayment, North American claims in Federal Court.
It claims Philpot continues to run the scam on other insurance companies, through his Michael Philpot Agency.
Also sued are Philpot's alleged agents and cohorts, Virginia Hirsh, John Kuykendall, C. Richie McNamee and Hector Paez Valdez.
North American claims Philpot, of Downey, Calif., runs his business out of Lake Havasu City, Ariz., and that his sales agents and writing agents work in both states.
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