Schuette Charges Two in Insurance Fraud Scheme

After Joint Investigation with Department of Insurance

and Financial Services

Contact: Andrea Bitely, Megan Hawthorne; 517-373 8060

October, 30, 2018

LANSING – Michigan Attorney General Bill Schuette today announced his office
has filed felony charges against Angella Swain and Cornell Jones for allegedly
selling fraudulent insurance to customers. The charges are a result of a joint
investigation by Schuette’s Child, Elder, and Family Financial Crimes Division
and the Department of Insurance and Financial Services.
Swain, 51, of Flint, is charged with the following 13 felonies:

• 1 Count of Conducting a Criminal Enterprise, a felony punishable by up to

20 years in prison;
• 11 Counts of Embezzlement by an Agent of more than $1,000 but less
than $20,000, a felony punishable by up to five years in prison; and
• 1 Count of Using a Computer to Commit a Crime, a felony punishable by
up to 20 years in prison.

Jones, 68, of Flint, is charged with one count of Conspiring to Conduct a Criminal
Enterprise, a felony punishable by up to 20 years in prison.
“Michigan residents pay the highest auto insurance rates in the country, and
fraud is part of the reason we have such high costs," said Schuette. “I want to
thank DIFS as well as my Child, Elder, and Family Financial Crimes Division for
their team work and dedication on this matter.”
“These charges are a positive development that sends a strong message that
those who commit fraud will be investigated, charged, and prosecuted,” said
DIFS Director Patrick McPharlin. “I am grateful to DIFS’ staff and our partners at
the Attorney General’s office for their fine work on this matter.”
Swain and Jones were arraigned on Monday, October 29, 2018 in the Genesee
County 67th District Court in Flint in front of Judge David Guinn. Both defendants
were released on Personal Recognizance bond. Their next court date is
scheduled for November 8, 2018.

Case Background
An investigation was started by the Department of Insurance and Financial
Services (DIFS) in June 2016 after an alleged victim reported that they had
unknowingly purchased fraudulent insurance. DIFS identified the two defendants
as the alleged individuals involved in selling fraudulent insurance. In September
2016 the case was referred to the Department of Attorney General for further
investigation.
Swain was a licensed insurance agent in Michigan beginning in 2002 and
operated Swain Insurance until 2013, when DIFS suspended her license for
failing to remit premiums to insurance companies. Also in 2013, Swain’s ex-
husband Cornell Jones began operating Select Insurance Services, and Swain
allegedly sold fraudulent insurance through Select. DIFS permanently revoked
Swain’s license in 2014 and Jones’ license in 2016.
Between 2011 and 2016 it is alleged that at least twenty victims paid either
Swain Insurance or Select Insurance for homeowners and auto insurance but
never received coverage, and some victims did not discover they lacked
insurance until they were in a car accident and tried to make an insurance claim.
The investigations found that Angella Swain allegedly pocketed some of her
client’s insurance premiums instead of remitting them to the insurance
companies. It is alleged that Swain then issued clients false insurance
certificates, leading them to believe they had insurance coverage when they did
not.
A criminal charge is merely an accusation and defendants are presumed
innocent until proven guilty.
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