Local News

Insurance agent accused of pocketing $52K in premiums

Posted December 23, 2010 12:03 p.m. EST
Updated December 23, 2010 7:43 p.m. EST

— A Holly Springs man has been arrested on charges that he allegedly pocketed more than $52,000 in insurance premiums while working for a Cary insurance agency.

Douglas Lee Borsum, 62, of 1010 Holly Park Drive, was arrested Wednesday on 13 counts of obtaining property by false pretense, the North Carolina Department of Insurance said Thursday.

Investigators say Borsum worked at Insurance Group of North Carolina where he sent invoices to customers asking them to remit their premium payments to him, deposited $52,176.36 in premiums into his bank account and then issued customers false certificates of insurance.

Authorities said that they found that many clients paid Borsum in cash and later discovered they did not have insurance coverage.

Nelson Torres, a stone mason, was among those swindled by Borsum. Torres said he paid in full for three insurance policies for his business. He found out he had no coverage when the insurance company told him they never got his payment. Without coverage, Torres can't work and is hoping the company can work out a way to uphold the promises Borsum made.

The Department of Insurance was trying to work with the insurer to help those victimized by Borsum, but a spokesman advised Thursday that 

Borsum was in the Wake County jail Thursday under a $60,000 secured bond.