'Architect' Designed His Future
LeAndre Drake Davis of San Jose was convicted Sept. 8 on 26 federal charges related to three fraud schemes he operated in the wake of the 1994 Northridge earthquake.
The 37-year-old man was the president of Shadowbrook Design Group, which was retained by Allstate to prepare engineering reports to assist the insurance company in adjusting claims for quake damage.
Davis and Shadowbrook prepared false and misleading engineering reports that were used to settle the claims of Allstate policyholders. On the reports Davis falsely represented that he was a licensed architect. In addition, some reports were prepared without adequate inspection while others were used to settle claims without an engineer ever inspecting the policyholder's property.
During the two-week trial, the jury watched a portion of an interview broadcast on the ABC program 20/20, in which Davis admitted that he had falsely represented himself to be a licensed architect. The jury also heard testimony from a woman who hired Davis to repair a South Central Los Angeles home. After receiving payment of $10,000, Davis demolished the home and abandoned the project when the woman refused to pay more money.
Davis also defrauded Allstate and some of the persons who prepared reports for Shadowbrook by submitting false and inflated claims for payment to Allstate. After being paid by Allstate, Shadowbrook did not pay some of its subcontractors for the work they had performed.
Lastly, Davis defrauded Los Angeles-based Pine Cobble Funding Corporation by selling more than $100,000 worth of imaginary accounts receivable for work he had purportedly done for Farmers Insurance Group and State Farm Insurance. This fraudulent scheme was a contributing factor towards Pine Cobble going out of business in 1998.
The case is the result of an investigation by the FBI and the California Department of Consumer Affairs.
Nation in a World of Hurt
On Sept. 22, investigators from the CDI Investigation Bureau served search warrants and a cease and desist order (C&D) on a Bakersfield Insurance Agency.
The search warrants were executed at the business office, residence and other locations related to the Jack Nation Insurance Agency Inc. of Bakersfield. Additionally, following the service of the search warrants, a C&D Order was served on the agency and Jack Laverna Nation, 48, ordering that the issuance of fraudulent certificates of insurance and other unlawful practices be halted immediately.
The agency has been the subject of numerous complaints to the CDI and the Department of Motor Vehicles relating to the alleged issuance of bogus insurance certificates.
The CDI Investigation Bureau is investigating multiple reports of suspected violations involving premium diversion (theft), issuance of fraudulent certificates of insurance, failure to place insurance policies, misrepresentation, transaction of insurance by unlicensed parties and other violations of the California Insurance Code and California Penal Code.
Commerce Insurance Affirmed
The "BBBpi" FSR on Massachusetts-based Commerce Insurance Co. was affirmed by Standard & Poor's (S&P). The rating action takes into account the combined financial strength of The Commerce Insurance Co., Commerce West Insurance Co., Citation Insurance Co. and American Commerce Insurance Co.
Also affirmed was the "BBBpi" FSR of Commerce West Insurance Co., formerly Western Pioneer Insurance Co., based in Pleasanton, Calif. The company is licensed and operates only in California.
In addition, S&P assigned a "BBBpi" FSR on Columbus, Ohio-based American Commerce Insurance Co., whose major states of operation are Arizona, Oregon, Washington, Ohio and Rhode Island. All companies are ultimately owned by the Commerce Group Inc., an insurance group which specializes in personal auto.
