Former ND Insurance Agent Charged with Cheating Elderly Clients out of Nearly $1.5M
Brent Kitzan, a former Bismarck insurance agent named in a Dec. 2011 Cease and Desist Order, has been officially charged with cheating his clients, many of whom were elderly, out of nearly $1.5 million over a period of nine years. State officials served the 27-count arrest warrant, which included eight counts of felony insurance fraud, 14 counts of felony theft, and five counts of “felony fraudulent securities practices,” on Kitzan while he was in custody earlier this month on an unrelated arrest.
In the Cease and Desist Order issued late last year, the North Dakota Securities Department accused Kitzan of representing himself to clients as a “Registered Financial Consultant” and insurance agent, despite the fact that he was never registered as a securities agent or investment adviser representative with the state.
The Order further alleged that Kitzan sold hundreds of thousands of dollars worth of unregistered investment contracts and securities to investors from mid 1999 to at least 2005. He also allegedly lied to investors about how much of their investments were at risk, how their funds were to be invested, and when and how they would receive returns. The Order was issued after a series of complaints caused the North Dakota Insurance Department and the North Dakota Securities Department to launch a joint investigation into Kitzan’s practices.
Once the investigation was complete, the Departments ordered Kitzan to stop doing business and turned their findings over to the Burleigh County State's Attorney's office for prosecution. No additional information is known about the state’s case against Kitzan at this time.