The Dakota County Attorney’s Office has filed criminal charges against a former licensed insurance agent for swindling a senior client.
Burnsville native Paul E. Kottke, 70, was charged with one count of insurance fraud and one count of theft by swindle. Kottke, who now lives in Omaha, Nebraska, allegedly stole from an Apple Valley client of his.
“The criminal complaint in this case alleges that this insurance agent stole money from a senior client and then left her worse off at time when she needed the money most for her care and well-being,” Commerce Commissioner Mike Rothman said in a statement. Rothman continued, urging seniors and their family members to remain vigilant on their financial affairs, and to report any cases of potential fraud to the Commerce Department.
The client provided Kottke with $10,000 to purchase a Certificate of Deposit with Prudential on her behalf back in 1995, according to the criminal complaint. Later, in 2004, she gave him an additional $1,000 to add to the previous investment. For his client’s investments, Kottke gave her a handwritten statement.
Over the course of nine years, Kottke sent his senior client annual statements reflecting the principal and interest amounts on the certificate—the last statement revealed a total balance of $22,196.67.
The senior client’s health later deteriorated, so in March 2013 the client’s family contacted Kottke requesting that her investment be liquidated to help pay for assisted living services. Kottke, however, told the family that they had to wait before they could withdraw any funds and that there would be an early withdrawal penalty.
Kottke ultimately did not send any funds to the client or her family; he has not contacted them since 2013. His senior client has recently perished.
A Commerce Fraud Bureau agent investigating the case contacted Prudential, and the insurer verified that the account number used in the statements was not using the company’s format. Prudential also stated that it had no record of an investment made by the victim or her family.
