Insurance agents arrested in $1.9m scam in California
A joint investigation by the California Department of Insurance and US Immigration and Customs Enforcement's Homeland Security Investigations has resulted in an alleged $1.9 million scam where the suspects submitted fraudulent life insurance applications to take advance commissions from insurance companies.
The accused submitted more than 600 fraudulent life insurance applications to multiple insurance companies between May 2013 to July 2017 collecting nearly $2 million in commissions they should allegedly have never received, according to the investigation.
The former life insurance agents from the Southland area were arrested on March 20 on multiple felony counts for their role in the alleged scam. The Los Angeles County District Attorney's office is prosecuting the case under the California Department of Insurance's Life and Annuity Consumer Protection Program.
Insurance Commissioner Dave Jones said: "Arresting the individuals behind this complex fraud conspiracy is another win for the department and our law enforcement partners. It should serve as a warning to any agent or broker breaking the law-we will investigate and prosecute you for your crimes."
Joseph Macias, special agent in charge for Homeland Security Investigations, added: "Fraud schemes like the one uncovered in this case result in billions of dollars in losses every year in this country and cause heartache and financial harm to law-abiding consumers. HSI is committed to working with its law enforcement partners to pursue such cases aggressively-ensuring those who brazenly enrich themselves through fraud and identify theft are held accountable for their crimes."
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