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A former Hicksville, Ohio, insurance agent has been sentenced to three years’ probation for his role in an auto insurance fraud scheme, state insurance regulators announced.

Ohio Lieutenant Governor and Department of Insurance Director Mary Taylor said Greg Newton was sentenced in the Defiance County Court of Common Pleas on Feb. 25. In addition to probation, Newton was ordered to pay court costs.

A joint investigation by the insurance department and the Defiance County Prosecutor’s Office revealed that from December 2008 to February 2009, Newton submitted false automobile insurance claims totaling more than $13,000 on the behalf of his clients. The payments were issued directly to a local repair facility and then given back to Newton. These claims were submitted without the knowledge of Newton’s clients.

Newton was convicted on two counts of felony insurance fraud on Jan. 7, 2011. He surrendered his resident agent insurance license on Jan. 22, 2010.

Deron Eicher, the owner of the automobile repair facility, pled guilty for his involvement in this scheme and will be sentenced on April 5, 2011.

Source: Ohio Department of Insurance

Topics Agencies Fraud Ohio