A former Virginia insurance agent has pleaded guilty to wire fraud after collecting insurance premiums from clients and diverting the money for personal use instead of forwarding payments to carriers.
Thomas Robery Hoyt, 32, of Melfa, Virginia, entered the guilty plea. Federal prosecutors said the scheme resulted in approximately $164,345 in fraudulently obtained funds.
Court documents show Hoyt had agreements with insurance carriers allowing him to sell their products to clients. He acted as an intermediary between policyholders and insurers.
For some policies, Hoyt instructed customers to send premium payments directly to him. He told clients he would transfer those funds to the insurance companies responsible for issuing their coverage.
- Complaints from customers eventually prompted the Virginia Bureau of Insurance to investigate. The regulator contacted Hoyt in June 2021.
- On September 9, 2021, Hoyt signed an agreement voluntarily accepting permanent revocation of his individual insurance licenses and those associated with Hoyt Insurance.
He later sold his book of business to a small independent insurance agency.
As part of the transaction, Hoyt represented that premiums owed on the transferred policies had been paid to the relevant insurers. He also stated there were no pending investigations involving the business.
The purchasing agency gave Hoyt a $27,282.28 down payment.
A subsequent review exposed problems across numerous policies included in the transaction. Many had already lapsed or had never taken effect because Hoyt hadn’t forwarded the required premiums to insurance carriers.
The Virginia Bureau of Insurance referred the case to the U.S. Postal Inspection Service in August 2022.
The federal investigation found Hoyt repeatedly told clients their insurance policies remained valid after collecting their premium payments. Instead of sending the money to insurers, prosecutors said he spent the funds for personal purposes.
Investigators also reviewed Hoyt’s bank accounts during the relevant period. Approximately half of the money flowing into his business was diverted toward personal spending, including substantial cash withdrawals.
Authorities calculated the fraudulent proceeds at roughly $164,345.
The case illustrates the financial exposure created when an insurance intermediary collects premiums directly from policyholders. A customer might believe coverage remains active even though the carrier never receives payment, leaving a policy lapsed or never properly placed.
Hoyt is scheduled for sentencing on December 10, 2026.
He faces a maximum sentence of 20 years in federal prison. A U.S. district court judge will determine the sentence after reviewing federal sentencing guidelines and other statutory factors.
