Ex-insurance agent gets jail time, probation for pocketing students’ premiums

Fourth District Judge Michael Reardon sentenced 40-year-old Timothy H. Heffner after he pleaded guilty March 1 to two counts of misappropriation or diversion of fiduciary funds, according to the Idaho Attorney General’s Office.

Heffner, of Boise, sold insurance policies to college students and pocketed a portion of their premiums.

Reardon sentenced Heffner to up to five years in prison but then suspended the prison sentence and placed the defendant on five years of probation. Heffner was also given a 360-day jail sentence, with 30 days to be served immediately.

He was fined $10,000.

Heffner was an Idaho resident insurance producer with an office in Boise. An investigation revealed that he took premium money from several Boise State University students during the 2014-2015 school year when they initiated health insurance policies with Blue Cross of Idaho. He did not, however, provide all the premium money to Blue Cross. He admitted during an interview with Department of Insurance investigators that he kept the money for business and personal expenses.

As a result, the Department of Insurance revoked Heffner’s insurance license in March 2016.

As part of the plea agreement, Heffner agreed to pay $11,236 in restitution. He paid the restitution in full on March 1.