Released: December 11, 2006

A Houston-based insurance agent has been issued a cease and desist order for allegedly engaging in fraudulent insurance activities in Louisiana, where he is not a licensed agent.

Iftikhar Ahmed Khan, 58, was ordered to cease and desist from engaging in the business of insurance in Louisiana today by Department of Insurance Fraud Section Investigators. Today's action came after the Department of Insurance received information from U.S. Immigration & Customs Enforcement in Lake Charles that Khan, through Khan Insurance Agency, allegedly produced fraudulent certificates of insurance for businesses located in Louisiana. The bogus certificates of insurance were used by the alleged insureds to qualify for and obtain federal government loans through the U.S. Small Business Administration.

The Department of Insurance has no record of Khan ever applying for or receiving an insurance license in Louisiana. Records show he is licensed by the Texas Department of Insurance as president of Khan Insurance Agency, 5823 Hillcroft St., Houston, TX.

Commissioner Donelon urges consumers who have concerns about insurance-related business with any agent or company to call the Department of Insurance Fraud Unit at 225-342-4956 or toll-free at 1-800-259-5300. If callers don’t want their names used, they can request that their involvement be kept confidential.