BOISE, Idaho (KLIX)- A Rupert insurance agent convicted for preparing false insurance documents has had her license revoked by Idaho state officials.

According to the Idaho Department of Insurance the license of Cruz "Kelly" Chacon, 42, was revoked Tuesday this week. Chacon pleaded guilty to a felony charge of aiding and assisting in the preparation and presentation of a false and fraudulent tax document. The Department of Insurance says that was grounds for revoking Chacon's license.

In May, the U.S. Attorney’s Office of Idaho announced that Chacon was sentenced to 18 months in a federal prison with one year of supervised release, for advising and counseling clients to submit materially false federal income tax returns to the Internal Revenue Service.

Insurance professionals hold a position of trust and have a duty to be honest and forthright in all of their dealings,

Chacon will also have to pay $81,384.00 in restitution. The woman pleaded guilty in February. According to a press release Chacon and some of her employees of Kelly’s Tax Service submitted more than 2,500 falsified tax returns. They claimed tax credits for which their clients were not entitled to such as the “child tax credit” and the “additional child tax credit.” The Attorney’s Office believes this helped get greater tax returns for Chacon’s clients and resulted in more business.

The Department of Insurance says:

 

Idaho Code provides for the revocation of the license of a producer who has pleaded guilty to any felony which shows dishonesty, a lack of integrity and financial responsibility, or an unfitness and inability to provide acceptable service to the consuming public.

 

“Insurance professionals hold a position of trust and have a duty to be honest and forthright in all of their dealings,” says Department Director Dean Cameron. “We are obligated to remove the license when we are made aware of misdeeds that could negatively impact the insurance-buying public.”

 

People with questions about this or other insurance-related topics are encouraged to contact the Idaho Department of Insurance by visiting www.doi.idaho.gov or by calling 334-4250 in the Boise area or 800-721-3272 toll-free statewide.