California residents may be interested to learn that in June, a former insurance agent received a sentence of three years of formal probation with time served. The agent, a 31-year-old man, is also required to pay restitution after submitting a plea of guilty to a single felony count of insurance fraud for misappropriating funds from his employer. According to the terms of his plea deal, the man is required to pay back $4,389 to his victim.
The California Department of Insurance Investigators was notified by the insurance company for whom the man worked that he had fabricated insurance documents pertaining to an insurance claim that he filed. While he was employed as an agent with the insurance company, the man also embezzled funds using multiple checks drawn from the company’s account.
The former agent was arrested in November 2017 as result of the investigation conducted by the department. He was initially charged with five felony charges based on information from the Santa Barbara County Superior Court. His agent license with the state was revoked, and he is prohibited from engaging in the business of insurance. In addressing the case, the insurance commissioner stated that there was no tolerance for insurance agents who commit fraud against policyholders or insurers for their own financial benefit.
Individuals who believe that they have been victims of insurance fraud may consult with an insurance law attorney about their legal options. After conducting an investigation, the attorney may notify the appropriate authorizes regarding the parties who engaged in the fraud.
An insurance law attorney might litigate to protect the rights of individuals who are victims of different types of insurance fraud, such as fraudulent billing practices. The attorney may use various consumer protection laws to enforce the rights and interests of clients and recover any losses they may have suffered.