A District businessman, whose license to sell insurance was revoked more than two years ago, was arrested yesterday on charges that he continued to sell insurance and pocketed thousands of dollars in premiums from his customers.
One customer, a gardener who paid more than $1,000 over a four-year period for automobile insurance recently had an accident and has been sued for $100,000 in damages by the other party involved. Investigators said this man initially was covered but that his policy has been canceled because premiums were not paid.
The accused agent, Horace B. Dixon, 47, of Culpeper, Va., was charged with eight felony counts of false pretense yesterday in U.s. District Court. In addition, 13 other cases of violations of Dixon's license were filed yesterday with the D.C. Corporation Counsel for local prosecution, acacording to consumer fraud division police officers.
According to police, Dixon encouraged his clients, most of whom were high-risk customers turned down by other agents, to make checks out to him personally rather than the three insurance firms Dixon said he represented.
Officers said that some of the customers complained about receiving cancellation notices or high bills, but that Dixon assured them that everything would be taken care of for them.
Acting D.C. Insurance Superintendent James R. Montgomery said Dixon's firm, H. B. Dixon and Associates, at 1511 K St. NW, was barred from doing business on April 30, 1977, after Montgomery's office received "several complaints" from persons who asserted that they had not received the insurance coverage that they had purchased from Dixon.
Dixon, who has operated his firm since 1968, was released on bond yesterday.
He could not be reached for comment.
Lee Brown, a 29-year-old gardener at Walter Reed Hospital and a resident of Southeat Washington, was quoted by police as reporting that he paid $450 a year for four years to Dixon Associates. Brown said he had an accident in January this year and then learned that he had no insurance coverage. He is being sued for $100,000 by the other driver.
One other customer of Dixon's a housewife in the District, also is facing a $100,000 suit stemming from an accident earlier this year. Investigation said.
Police declined to release her name. However, they said she had paid more than $1,000 over a five-year period in insurance premiums, but is not insured.