North County

An insurance agent pleaded guilty Wednesday to five counts of grand theft in connection with losses sustained by five North County teachers and others who invested more than $215,000 in teacher retirement funds.

Emmett Lynn Kemp Jr., 41, of Carlsbad, admitted before San Diego Superior Court Judge J. Richard Haden that he took the funds. Haden set sentencing for March 4.

Deputy Dist. Atty. Duane Shinnick said the judge may order Kemp to fully repay all 15 teachers who invested in his firm, San Diego Financial Services. The firm is no longer in business.

Under his plea bargain agreement, Kemp’s maximum sentence would be two years in state prison, Shinnick said. Ten other counts of grand theft were dismissed.

Shinnick said two insurance companies have agreed to pay back the teachers for their losses. “It looks like the companies will become the ultimate victims,” Shinnick said.

“In general, Kemp was acting as an agent for (the insurance companies), though none of the money ever went to the companies. The insurance companies had no idea he was taking the money and putting it in new accounts, separate accounts, for his own purposes,” the prosecutor said.

Shinnick said Kemp used the money to buy a new car, to run his business and to gamble.

The investments, which were supposed to be tax-exempt, were made between November, 1982, and last September.

Kemp is free on his own recognizance.