For Consumers

Former insurance producer pleads guilty to first degree theft and money laundering

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January 31, 2024

OLYMPIA, Wash. — A Selah man pled guilty to first-degree theft and money laundering after an investigation by Insurance Commissioner Mike Kreidler’s Criminal Investigation Unit (CIU).

Jason Eaton was sentenced to 60 days of electronic home detention and ordered to pay $100 restitution after his guilty plea, entered on January 18, 2024, in Yakima County Superior Court.

From July to November 2019, Eaton worked as an insurance producer and issued policies to his clients with American Family Insurance. American Family tried, on multiple occasions, to collect $24,162.24 in policy premiums for 33 clients but was unable to collect any funds from Eaton’s premium trust account. 

American Family continued to provide coverage to the 33 clients, despite never collecting payment from Eaton. Ultimately, Eaton failed to remit $23,450.54 to American Family and was referred to the Office of the Insurance Commissioner. 

Eaton’s license was revoked before CIU conducted a criminal investigation. During their investigation, CIU conducted a search warrant on Eaton’s bank accounts. Detectives discovered Eaton had been transferring his client’s money from the premium trust account to both his personal account and to other business accounts instead of allowing the premium payments to be collected by American Family.

CIU investigates insurance fraud and works with allied law enforcement agencies and state and local prosecutors on criminal cases. Insurance fraud costs the average family $400 to $700 per year in increased premiums and companies are required by law to report fraud to the Commissioner.  

If you suspect someone of committing insurance fraud, report it to Kreidler’s investigators.