Texas Insurance Agent Guilty of $300K Premium Theft and Wire Fraud

When Trust Breaks: The Texas Agent Who Misused Premiums

By Insurasales

In a stark reminder of the risks lurking in fiduciary roles, the case of Carlyle Poindexter offers lessons for agents, carriers, regulators, and policyholders. Poindexter recently pleaded guilty to conspiracy to commit wire fraud after overcharging nearly $300,000 in insurance premiums. He’s been sentenced to five years in federal prison, plus a $50,000 fine.

What Happened

Poindexter’s scheme was not small-time. The case begins in 2012 when Maverick County Solid Waste Authority (MCSWA) needed a surety bond to secure a state permit for landfill operations. An independent agent, Jose Jaime Rodriguez, connected MCSWA with Poindexter, who placed the bond (first $2.9 million, later raised to $3.8 million) with an insurer called Lexon Insurance Company.

Over a span of six years, Poindexter charged MCSWA total premiums of $712,350. But here is where things go wrong: only $329,313 of that was submitted to the insurer. Alongside commissions of roughly $82,532 (shared with Rodriguez), Poindexter kept the rest under the guise of “fees” that were claimed without any documented agreement with the client.

Regulators discovered irregularities and Lexon reported suspected fraud to the Texas Department of Insurance (TDI) in 2017. License revocation, restitution, and now prison time followed.

Why This Case Matters

This is more than just a fraud story. It illuminates several vulnerabilities and systemic issues in insurance practice that are relevant industry-wide:

• Fiduciary duty erosion: Agents and brokers are supposed to act in clients’ best interest, including transparent handling of funds. When “fees” are invented or misrepresented, trust is eroded.

• Regulatory oversight delayed: The overbilling happened over many years before being uncovered. That signals weaknesses in both internal audits by insurance providers and external regulatory oversight.

• Impact on public entities and taxpayers: One of the victims in this case is a public authority. Misused funds affect service delivery, budgets, and public trust.

• Reputational damage: Agents or agencies that are part of such scandals harm not only themselves but can cast doubt on the wider profession.

Pull Quotes

“It’s just flat-out theft of taxpayer money.”
— Chris Yates, TDI Fraud Unit investigator

“At the end of the day he stole money from the citizens and masked it as legitimate fees.”
— Chris Yates

Key Takeaways for Industry Stakeholders

To avoid similar pitfalls, here are strategic actions that agents, carriers, and regulators should consider:

• Strengthened fee disclosure — ensure that any fees beyond standard commissions are documented in writing and agreed upon by clients.

• Regular audits of premium flows — internal carrier audits and regulator checks should specifically track premium receipts, commissions, and remittances.

• Enhanced licensing oversight — watch for red flags such as unexplained “fee” income, wide spacing between premium charged and remitted, or repeated client complaints.

• Strict consequence enforcement — revoking licenses, requiring restitution, imposing prison time where appropriate sends clear signals deterrent to fraud.

What Agents Should Learn

From the front lines, there are practical lessons:

• Always maintain transparency with clients. Be extra careful when presenting “fees.”

• Keep impeccable records of premium remittances to carriers and commissions.

• If you see something odd — large gaps in what’s billed vs what’s remitted — investigate proactively.

• Maintain professional ethics not only because it is required but because your reputation, the profession’s credibility, and clients’ well-being depend on it.

Final Thoughts

Cases like Poindexter’s are painful reminders that trust is the very foundation of the insurance business. When agents breach that trust, the costs are financial, reputational, regulatory, and human. But the industry is not defenseless. Strong oversight, ethics, and transparency can reduce risk, protect clients, and uphold the promise of insurance as a safeguard.

As the landscape gets more complex — more types of coverage, more intermediaries, more regulatory layers — we’re all reminded that integrity isn’t optional. It is the bedrock.