Former Seattle Insurance Agent Faces Multiple Theft Charges in $424,000 Premium Scheme
A former Seattle insurance agent is now a fugitive after being charged with stealing over $424,000 in insurance premiums from his clients. Edward Hadley, who failed to appear in court on January 15, 2025, is now facing nine counts of first-degree theft following extensive investigations by Washington state authorities.
The Scheme
Between December 2020 and November 2021, Hadley orchestrated an elaborate scheme involving the misappropriation of client premium payments. He deposited 21 checks totaling $424,107 into his personal account, which were originally intended for HUB International Northwest LLC (HUB NW). The fraud came to light when one of his business clients switched their earthquake insurance provider.
Discovery of Fraud
The fraudulent activities were uncovered when Superior Underwriters, a competing insurance company, reviewed previous policies Hadley had sold to a client. Upon examination, they discovered significant discrepancies in the policies’ terms, premiums, and documentation. The investigation revealed that Hadley had provided falsified proof of coverage documents for earthquake policies.
Investigation Findings
The Office of the Insurance Commissioner’s Legal Affairs team conducted a thorough investigation, interviewing multiple victims. Eleven consumers confirmed they had made their checks payable to Hadley’s insurance agency, not to him personally. However, Hadley manipulated these checks by writing his “City B Properties” business name on them before depositing them into his personal account through ATM transactions.
Financial Discrepancies
During the period of his fraudulent activities, Hadley did return $276,387 to HUB NW, though it remains unclear whether these funds reached the affected consumers. A significant portion of the stolen funds, approximately $147,719, remains unaccounted for, raising concerns about the total extent of financial damage caused to his clients.
Legal Consequences
The King County Prosecutor’s Office has filed multiple charges against Hadley, and a bench warrant was issued following his failure to appear in court. The Office of the Insurance Commissioner has already taken action by revoking Hadley’s insurance producer license in June 2024. He has been added to Insurance Commissioner Patty Kuderer’s insurance fraud most wanted list.
Impact on Industry
This case highlights the ongoing challenge of insurance fraud in Washington state. Insurance fraud is not a victimless crime, as it typically results in increased premiums for all policyholders. According to the Criminal Investigations Unit (CIU), insurance fraud costs the average family between $400 and $700 per year in increased premiums.
Prevention and Reporting
The case underscores the importance of regulatory oversight in the insurance industry. Insurance companies are legally required to report suspected fraud to the commissioner. The CIU works closely with law enforcement agencies and prosecutors to investigate and prosecute insurance fraud cases.
Current Status
Authorities are currently seeking information that could lead to Hadley’s arrest. The case serves as a reminder of the importance of due diligence when dealing with insurance agents and the need for robust regulatory frameworks to protect consumers from financial fraud.
This case joins other significant insurance fraud investigations in Washington state, including recent cases involving fraudulent auto insurance claims. The Office of the Insurance Commissioner continues to maintain vigilance against insurance fraud through its Criminal Investigations Unit, working to protect consumers and maintain the integrity of the insurance industry.
Authorities urge anyone with information about Edward Hadley’s whereabouts to contact their local law enforcement agency or the Commissioner’s Criminal Investigations Unit. This case represents one of the larger premium theft cases in recent Washington state history and highlights the ongoing challenges faced by regulators in protecting consumers from insurance fraud.
