A Washington man pleaded guilty to attempt to engage in unauthorized insurance transactions and attempted first degree theft, both felonies, in King County Superior Court on December 29, 2016. He has a long history of scamming by saying he will provide hole in one insurance and failing to pay out the high-priced rewards. He was sentenced to fifteen months in prison plus restitution, extradition costs, and fees amounting to over $25,000. In February 2016 he was charged for selling hole-in-one insurance online without a license, in 2012 he faced charges for selling insurance without a license, and he has been under investigation or prosecuted in twelve different states during his twenty-one year long career. Kolenda is a career scammer and resumed selling insurance without a license only four days after his 2014 sentencing.

A type of prize indemnification insurance, hole-in-one insurance works a lot like other insurance policies except the organizers of the event pay the premium in order to prevent them from having to pay for a large prize if someone makes a hole-in-one during their event. A premium is assigned based on the number of participants in the tournament, the value of the prize, and the length of the shot being insured. If a golfer gets a hole-in-one, the coverage is triggered and the insurance provider will pay for the prize.