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Nov 10, 2009 11:59 AM by sleonard

Ville Platte insurance agent accused of fraud

A Ville Platte agent has been issued a cease and desist order, summary suspension of his licenses and fine notice today for allegedly providing fraudulent proofs of insurance.

John Melvin Lavergne, 64, was served by Department of Insurance Fraud Section Investigators with an order to cease and desist from engaging in the business of insurance, a six month summary suspension of his licenses and a $16,500 fine notice. His agency, Lavergne's Insurance Agency, was also issued a cease and desist order and summary suspension.

Lavergne is alleged to have provided fraudulent proof of insurance to the Lafayette Department of Motor Vehicles on four occasions.

Department records show that Lavergne was issued a Casualty, Property and Vehicle Physical Damage license in April 1977 which is valid through April 2011; and a Life, Accident & Health license in May 1973 which is valid through April 2010. His licenses will be summarily suspended for six months from today unless a hearing is requested with the Department.

Commissioner Donelon urges consumers who feel uneasy about any insurance related transaction to call the Department of Insurance Fraud Section at 225-342-4956 or 1-800-259-5300. If callers do not want their names used, they can request that their involvement be kept confidential.

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VILLE PLATTE, La. (AP) - The state Department of Insurance has issued an immediate cease and desist order against Lavergne's Insurance Agency of Ville Platte for allegedly providing fraudulent
proofs of vehicle insurance.
In a news release, investigators with the department's Fraud Section said the notice was served Monday on 64-year-old John Melvin Lavergne and his agency.
Insurance Commissioner Jim Donelon said in the release that Lavergne, who has been in business for almost 40 years, currently holds both a casualty, property and vehicle physical damage license
and a life, accident and health license.
In addition to having his license suspended, Donelone said Lavergne has been fined $16,500.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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