A former Forsyth insurance broker has agreed to plead guilty to two federal charges related to a scheme that bilked hundreds of thousands from customers without providing insurance coverage.
Kileen Hagadone agreed to plead guilty to one charge of wire fraud and one charge of aggravated identity theft, according to documents filed in U.S. District Court in Billings.
In exchange for the guilty plea, federal prosecutors agreed to drop 10 additional charges related to the scheme.
The wire fraud charge centered around her dealings with one of her largest customers, Chief Dull Knife College in Lame Deer. Through her business, Rosebud County Insurance and Taxes, Hagadone collected nearly $200,00 from the college in insurance premiums over two years for policies that did not exist.
In July, Montana Insurance Commissioner Troy Downing secured a court order barring Hagadone from selling insurance. She was arrested later that month.
The two charges contain a maximum punishment of 22 years in prison, a $500,000 fine and four years supervised release.
Hagadone is scheduled to appear in court Thursday.