Enforcement investigators with the California Department of Insurance ("DOI") said that they have identified a national insurance scam targeting consumers shopping for privately funded loans.
The DOI said that victims were identified in New York, Pennsylvania, Tennessee, and Texas and lost a total of $100,000 among them.
According to the DOI, the alleged scammers contacted consumers who inquired online about securing a loan, using the name Taylor Investments or a version of this name (this person, the DOI said, also is a victim).
According to the TDI, the borrower is told he or she qualifies but first must purchase a loan payment protection insurance policy to pay the loan, in the event the borrower is unable to make payments and avoid default. The victim is instructed to wire the premium payment to an out-of-state checking account.
To appear legitimate, the DOI said, the scammers provide the borrower with a certificate of insurance from the DOI that includes the Great Seal of the State of California. The certificate is fraudulent, the DOI said. It does not issue insurance certificates.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].