A former Arkansas insurance agent was arrested for allegedly creating fake policies for a local company that thought it was buying workers’ compensation and general liability insurance.

In testimony before the Arkansas Insurance Department and through other information during its investigation, it appears the ex-agent was targeting the Hispanic population, according to regulators.

Rickey Lynn Warren of Hensley, Ark., is charged with taking checks totaling $2,125 for insurance from Andres Gaytan, owner of Red Construction Co. in Alexander, Ark., and cashing the checks without purchasing any policies, according to Arkansas Insurance Commissioner Jay Bradford. Warren faces charges of theft of property, a felony.

On Feb. 13, 2008, Warren sold one-year term general liability and workers’ compensation policy to Gaytan. In return, Gaytan was given a “certificate of liability insurance from Commerce and Industry Insurance Co. with a 12-digit policy number.

The certificate reflected the workers’ compensation policy that carried the term dates.

When Gaytan contacted the insurer to question incorrectly stated term dates, he was informed that the policy numbers did not match those used by the company, the insurance department said. Commerce and Industry told him that it had no record of receiving payment for any policies, officials said.

The Arkansas Insurance Department investigated the matter and held a hearing on May 18 where Warren failed to appear. He was ordered to make full restitution to his clients and assessed a total of $55,000 for penalties under the Arkansas Insurance Code.

It was during the investigation and hearing where information pointed to Warren’s alleged targeting of Arkansas’ Hispanic population.

“I find the acts of Rickey Warren to be especially egregious as he appears to have targeted a segment of the community whose livelihood depends upon being able to acquire specific types of insurance in order to conduct their business,” Bradford said in a statement.