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Hamm issues cease and desist orders against Dickinson, Fargo insurance agents in unrelated cases
BISMARCK, N.D.-North Dakota Insurance Commissioner Adam Hamm recently served cease and desist orders against Scott Biggs, a Dickinson insurance agent, as well as Robert Medhus, a Fargo insurance agent, and his agency, Medhus Company. The orders bar both men from engaging in the business of insurance until further notice.

Biggs allegedly placed a client's assets into various trust accounts and, without the knowledge of the client, withdrew $30,000 from one of the accounts. When the client attempted to withdraw money from the same account, Biggs allegedly advised him that the IRS had frozen the accounts. The client requested proof, but Biggs refused to provide any documentation.

Biggs also allegedly issued two cashier's checks from a savings account that had been set up for the client. The first check in the amount of $23,552 was paid to a Chase credit card in Biggs' name; he allegedly used the second check written for $5,805 to purchase three gold coins. Biggs was charged with five counts of felony theft of property in Stark County District Court in May 2012.

In June 2012, the North Dakota Securities Commissioner issued a cease and desist order against Medhus and Medhus Company alleging that he falsely reported to an investor that the bulk of the investor's retirement assets had been rolled over into an IRA account. He also allegedly forged a federal tax form indicating a mandatory distribution to the investor from the IRA of $17,100 for tax year 2011. Medhus allegedly attempted to pay the distribution with a $17,100 check, but the funds were insufficient. When the investor requested liquidation of the retirement plan assets, Medhus allegedly issued another check to the investor with insufficient funds in the amount of $319,125. Medhus has been unable to account for the investor's retirement plan assets. Medhus and Medhus Company failed to report the December 2011 securities registration suspension to the Insurance Department, which is a violation of North Dakota law.

"Consumer protection is the Department's number one priority, and these orders are important in preventing further harm to consumers," Hamm said.

Both Biggs and Medhus have a right to request an administrative hearing within 30 days. Consumers with questions or concerns are encouraged to contact the Insurance Department at 1-800-247-0560.


Scott Biggs cease and desist order

Robert Medhus cease and desist order 

North Dakota Insurance Department
600 E. Boulevard Ave.
Bismarck, ND 58505-0320
Phone 701.328.2440
Toll free 800.247.0560
Fax 701.328.4880

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