Ex-agent pleads guilty

COEUR d'ALENE - A 56-year-old insurance agent who previously owned and operated Rockwood Insurance in Coeur d'Alene pleaded guilty Wednesday to three counts of insurance fraud in U.S. District Court in Coeur d'Alene.

James K. Sokolis, of Spokane, sold his book of business in August 2010, and the new company hired Sokolis to work the book of business he sold to them until late January 2011, according to a plea agreement.

The Press reported previously that Missoula-based Western States Insurance Agency acquired Rockwood Insurance. The previous report also said Sokolis would remain with Western States. Western States executives said at the time they were expanding the insurance company's North Idaho market share.

Western States representatives couldn't immediately be reached for comment.

The U.S. Attorney's Office, which announced the guilty plea, said that while Sokolis was retained he misappropriated clients' premium payments.

The attorney's office said he failed to purchase the policies paid for or failed to pass along the entire premium entrusted to him to the insurance carrier.

The attorney's office said he misappropriated more than $356,000.

The charge is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release.

Sentencing is set for June 12 in front of U.S. District Court Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene.

The case was investigated by the U.S. Secret Service.