Knoxville insurance agent lied about criminal past on state application

Knoxville insurance agent lied about criminal past on state application

By DON DARE
6 On Your Side Reporter

KNOXVILLE (WATE) -- In August, 6 On Your Side reported about an elderly Knoxville woman who lost tens of thousands of dollars to an insurance agent she trusted. Now, we have new details about her case and what you need to know to protect yourself.

Insurance is one of the careers that requires a license before you can work in Tennessee.

Before you become an agent, the state wants to know if you have a criminal past. The Department of Commerce and Insurance requires prospective agents to answer a series of background questions.

First on the list is, have you ever been convicted of a crime?

6 On Your Side discovered new information about a licensed agent named Ward Molitor. He's the chairman of Income Strategies, Inc. in Knoxville.

He did business with an 81-year-old widow named Mary. She asked us not to use her last name.

In our earlier report, Mary explained how she lost at least $40,000 to $50,000 in surrender charges to Molitor after he sold her three annuities in seven months.

"He said that I would invest my money in a company and make a large amount of interest. Instead, I lost large sums of money," Mary said.

She also said Molitor told her she'd make up the losses, but she never has.

Although she approved the transactions, she said the changes were based on Molitor's advice.

A state investigator asked Mary questions about Molitor a few months ago.

Public documents obtained by 6 On Your Side show Molitor wasn't honest on his application to become a Tennessee insurance agent in September 2003.

For instance, he marked "no," he's never been convicted of committing a crime.

However, a court document from Broward County, Florida says in 1987, Ward A. Molitor pleaded guilty to one count of indecent assault of a child under 16 and was sentenced to 18 months probation.

Before Molitor's plea bargain, there had been two counts of indecent assault of a child and other charges.

"Plus four counts of sexual battery against a victim 12 years and under," I told Mary. "Oh, how horrible. I had no idea," she said.

She also said if she'd known about his criminal past, "I would not have let him in my house."

In Maryville, Donna Dowdy is the East Tennessee president of the state Association of Independent Insurance Agents. It has a strict code of ethics.

"We're just set to a higher standard than some other industries. We are considered professionals. That's why we have licensing requirements," Dowdy explained.

6 On Your Side showed Dowdy a blank copy of the state's application to become an insurance agent.

"If someone were to check no about having committed a felony, but they actually had, what should happen?" I asked.

"I would expect to lose my license. It talks about perjury under that application. If you lie on that application, the state of Tennessee should remove you from ever selling insurance or being an insurance agent in this state again," Dowdy said.

Back in Knoxville, 6 On Your Side visited Molitor's office, which is also his home. The garage door was open, but no one was outside.

We knocked at his front door, waited, then heard someone come out the garage. When he recognized us, Molitor left before we could ask about the discrepancies on his license application.

"I hope the Department of Commerce and Insurance takes his license so that he can't do this to any other person," Mary said.

6 On Your Side has also learned Molitor has delinquent court-ordered child support obligations that total nearly $100,000. There's another question on the insurance application where he marked no, he's not delinquent.

The Department of Commerce and Insurance has been informed about the apparent deceptions. To date, no action has been taken.