Former Bannock County Insurance Agent sentenced for misappropriating client premiums

Sixth District Judge Stephen Dunn sentenced a 38-year-old Pocatello man for misappropriating client premiums on Monday.

Judge Dunn granted Alan C. Rzeszutko a withheld judgment and placed him on probation for four years.

The judge ordered Rzeszutko to pay $6,201 in restitution to Farmers Insurance, and $1,043 to the Idaho Department of Insurance. He must also pay a fine of $750 and court costs of $245.

The court also ordered 120 days of discretionary jail time to be utilized by a probation officer.

An investigation revealed Rzeszutko began diverting customers’ premium payments to his personal accounts while he working as an insurance agent for Farmers Insurance in Pocatello. He also took steps to make sure clients were not receiving late notices on their accounts officials said.

Rzeszutko admitted his actions to investigators and pleaded guilty in October. He was charged with one count of Diversion or Misappropriation of Fiduciary Funds.

The state revoked Rzeszutko’s insurance license in 2016.