A former Delaware insurance agent received a three-year prison sentence after pleading guilty to three felony theft charges involving misappropriated client funds, according to the Delaware Department of Insurance.
The court also ordered Zenaida Nieves-Cordero to pay $625,226.75 in restitution and barred her from contacting the victims.
Prosecutors said most of Nieves-Cordero’s clients were Spanish-speaking residents of Kent and Sussex counties. The Delaware DOI said investigators believe she exploited concerns among some clients about contact with law enforcement, reducing the likelihood that they would report suspected misconduct.
Several clients eventually contacted authorities. Their complaints helped insurance investigators and the Delaware Department of Justice examine unexplained bank withdrawals and missing funds tied to Nieves-Cordero.
The DOI investigation focused on business practices at Apple Insurance Inc., her former Georgetown insurance agency. Investigators identified a pattern of unauthorized withdrawals from client bank accounts over several years.
Clients had authorized Nieves-Cordero to withdraw money solely to pay insurance premiums. Prosecutors said she instead redirected hundreds of thousands of dollars for personal use.
Apple Insurance sold property and casualty coverage, including auto, homeowners, renters and commercial insurance. The agency no longer operates.
At Insurance Commissioner Trinidad Navarro’s request, the Delaware Court of Chancery placed Apple Insurance under conservatorship. The arrangement allowed state officials to manage an orderly wind-down and permanently close the agency.
Delaware regulators also revoked Nieves-Cordero’s authority to sell or manage insurance. She is now serving the three-year prison sentence imposed in the criminal case.
Navarro described the conduct as one of the most serious breaches of trust involving an insurance agent encountered by the department. He said Nieves-Cordero abused her position and targeted clients who had placed significant trust in her.
