A claim manager in California has been arraigned on several charges resulting from an undercover investigation, according to California Department of Insurance Fraud Investigators. David Posner, who works for a third party administrator that handles automobile injury claims, was arrested on felony charges including commercial bribery, theft of trade secrets, and extortion.

During the course of his employment, Posner was involved in meetings with criminal investigators with the CDI Fraud Division and the California State Bar concerning an investigation of several attorneys. Posner was also in a position with his employer, the questrel companies, to negotiate automobile injury claims wherein the victim attorney represented the injured parties.

The investigation began when an attorney alerted the Fraud Division that Posner allegedly had offered to sell information from insurance companies and law enforcement to assist the attorney in avoiding a criminal investigation or prosecution. The attorney claimed that Posner had requested $50,000 for the information.