Fraud of the Week

Agent Fraud – California

Amount – $182,276+

An agent whose license was revoked in 2017 for failure to report a DUI charge has been arrested and charged with eleven felony counts including theft, grand theft, and embezzlement. He is accused of writing 162 fraudulent policies in order to gain unearned commissions. The insurance department started an investigation after a policyholder notified his carrier that he was not employed by the company listed on the policy in question. The former agent wrote policies under "company groups" for people who had never worked for those companies, for which the insurer paid $182,376 in unauthorized claim benefits. The former agent also submitted unauthorized applications for individuals and provided false information so he could receive $35,000 in illegal advance commissions.