Delaware Department of Insurance Announces Sentencing of Former Insurance Agent for Theft of Client Funds
Dover, DE (September 24, 2026) — The Delaware Department of Insurance (DOI) announced recently the sentencing of former Delaware insurance agent Zenaida Nieves-Cordero, who has been ordered to serve three years in prison after pleading guilty to three counts of felony theft involving the misappropriation of client funds.
The Department initiated its investigation after receiving multiple consumer complaints regarding unexplained withdrawals and missing funds. Through a detailed inquiry into Nieves-Cordero’s business practices at her former agency, Apple Insurance Inc., DOI investigators uncovered a pattern of unauthorized withdrawals from clients’ bank accounts. Consumers had entrusted Nieves-Cordero to withdraw funds solely for the purpose of paying insurance premiums; however, evidence showed she diverted hundreds of thousands of dollars for her personal use over a period of several years.
The majority of Nieves-Cordero’s clientele were Spanish-speaking residents of Kent and Sussex Counties. The Department believes she deliberately targeted this vulnerable community, exploiting fears of engaging with law enforcement and making it less likely that victims would report the misconduct. DOI acknowledges and commends those consumers who overcame these concerns and came forward, enabling investigators and the Department of Justice to hold Nieves-Cordero accountable.
In addition to referring the matter for criminal prosecution, Insurance Commissioner Trinidad Navarro sought and was granted a Court of Chancery conservatorship over Apple Insurance Inc. and Nieves-Cordero’s insurance business operations to ensure an orderly wind-down of the business. After the conservatorship was approved, investigators found that Nieves-Cordero had already emptied Apple Insurance Inc.’s known bank account and continued accessing funds through undisclosed accounts, actions the DOI says demonstrate clear efforts to evade accountability.
Commissioner Navarro noted the severity of the crimes, stating that in nearly a decade as Commissioner and more than 26 years of combined law enforcement experience, he has not encountered a case involving theft of this magnitude by an insurance agent. He emphasized that Nieves-Cordero’s fiduciary responsibilities and her deliberate targeting of a community based on heritage should be recognized as significant aggravating factors.
“This was one of the most severe breaches of trust by an insurance agent that our Department has ever encountered,” said Insurance Commissioner Trinidad Navarro. “Ms. Nieves-Cordero exploited her position and targeted a community that placed their confidence in her. I am grateful to the individuals who came forward despite their fears, allowing us to uncover the full scope of her actions and ensure she is held accountable. The Department remains steadfast in protecting Delaware consumers and upholding the integrity of our insurance marketplace.”
Alongside her prison term, Nieves-Cordero received additional levels of probation following release. She was ordered to have no contact with her victims and must pay $625,226.75 in restitution.
The Delaware Department of Insurance remains committed to protecting consumers, enforcing fiduciary standards, and ensuring accountability within the insurance industry.
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