Tarzana, Calif. Broker Pleads No Contest

Alfred Galoustian, 34, of Tarzana, Calif., pled no contest to two felony counts of grand theft. Galoustian was sentenced to 30 days in County Jail, 240 hours of community service, three years of summary probation, and ordered to pay $17,377.50 in restitution.

The conviction is a result of an investigation conducted by the CDI Criminal Investigations Branch's Investigation Bureau. The investigation revealed that Galoustian worked as an insurance broker/agent in Tarzana, collected insurance premiums and allegedly failed to remit said premiums to insurance companies.

Galoustian's reported actions exposed six consumers to the risk of loss. He allegedly collected the full premium from one client, then financed the premium without the victim's permission and placed his own post office box address on the application preventing the victim from knowing the policy had been financed. Galoustian then failed to make the payments on the premium financing loan and the insurance policy was cancelled for non-payment.

The Los Angeles County District Attorney's Office prosecuted the case.

Truck Drivers Arrested for WC Fraud

Gerald Boiner, 30, of Rancho Cuca-monga, Calif., was arrested Nov. 12, 2002 by CDI Fraud Investigators. Boiner alleged that he injured his back and wrist on Aug. 7, 2001, from an on-the-job fall.

As a result of the pain he described to his treating physician, Boiner was determined to be Temporarily Totally Disabled and began collecting workers' compensation benefits through Gallagher Basset Services. Over the next several months, Boiner collected approximately $12,000 in disability benefits and received over $6,000 in medical services paid for by the insurer.

In a June 2002 deposition, Boiner alleged that it was painful for him just to get out of bed and that he had not worked for anyone since he stopped working for the trucking company. Investigators found that during this period Boiner had actually been gainfully employed as an apprentice lineman for electrical companies, digging holes, lifting heavy objects, and climbing poles.

The San Bernardino Superior Court issued a felony warrant on Nov. 7, 2002, charging Boiner with three counts of giving false or misleading information regarding his claim to his insurer and three counts of perjury. He was arrested at a work site and booked at West Valley Detention Center in Rancho Cucamonga on $25,000 bail.

Joseph Gorman, 47, of Riverside, Calif. was also arrested on Nov. 12, 2002, by CDI Fraud Investigators. Gorman alleged that he injured his left foot in an on-the-job injury in late 2001.

In a conversation with his employer's workers' compensation insurer, Gorman alleged that his doctor told him that he ripped a ligament and incurred a fracture. Investigators found that Gorman told co-workers that the injury occurred off-duty while playing with his children. Additionally, it was discovered that his medical injuries had been nothing beyond a sprained ankle.

The insurer, Royal & Sun Alliance Insurance Group, paid no benefits on the claim. The San Bernardino Superior Court issued a felony warrant on Nov. 7, 2002 charging Gorman with three counts of giving false or misleading information regarding his claim to his insurer. He was arrested at a work site and booked at West Valley Detention Center in Rancho Cucamonga on $25,000 bail.

CDI Revokes Licenses of Father & Son Ins. Brokers

The CDI issued an Order of Summary Revocation against the Fire and Casualty Broker Agent licenses of Charles Edward Dunbar and his son Christopher Freeman Dunbar after they pled guilty to grand theft. The Life Agent license of Christopher was also revoked. These licenses have been suspended by CDI since Dec. 19, 2001.

Charles Dunbar, 66, and Christopher Dunbar, 43, were arrested on Dec. 13, 2001, after surrendering to authorities on one felony count each of grand theft and booked into the Sacramento County Jail. The Sacramento County District Attorney's Office prosecuted the case.

Charles and Christopher were each sentenced recently to four years formal probation and community service. Restitution to victims had been accomplished prior to sentencing.

On Nov. 25, 1998, investigators received an anonymous letter authored by a former employee of Dunbar & Associates Insurance Services. The letter indicated that Dunbar & Associates had allegedly engaged in a number of fraudulent and illegal activities, which included padding premiums, embezzlement and forgery.

On April 27, 2000, CDI investigators executed a search warrant at Dunbar & Associates and related locations. Investigators seized boxes of client files, employee computers and hard drives, bank records, copies of check ledgers, and large amounts of cash and coins.

After interviewing former employees and clients of Dunbar & Associates, supported by documentation, it was discovered that from Jan. 1994 through April 27, 2000, Charles and Christopher allegedly committed insurance fraud by keeping insurance money (returned premiums and credits) that should have been returned to numerous clients. Charles allegedly took monies totaling $13,682.50 and Christopher allegedly took monies totaling $27,450.30, altogether totaling $41,132.80, in which they were not entitled to.

In addition, Christopher allegedly failed to place coverage for his client, "Florin Center," and converted the monies collected on Oct. 8, 1996, from MacLaughlin & Company for Walter & Dorothy Anderson, (DBA Florin Center), totaling $6,014, for the 1995/1996 policy period to an Agent Broker Fee. Christopher allegedly supplied MacLaughlin & Company with a false Certificate of Insurance, leading the clients to believe that proper insurance coverage was in place during this policy term.

Sacramento Woman Arrested for Insurance Fraud

The CDI Fraud Division arrested Shauna M. Lewis, 28, of Fair Oaks, Calif. and charged her with one felony count of insurance fraud. She was booked into the Sacramento County Jail and bail was set at $30,000.

Investigators said that Lewis was involved in a traffic collision on Dec. 14, 2001, at about 1:55 p.m. She allegedly told the other party that she had auto insurance with Infinity Insurance, which had actually been cancelled. Fifty minutes after the accident, at 2:45 p.m., Lewis contacted Western General Insurance Company and purchased an insurance policy. Shortly thereafter, she reported the above accident as occurring on Dec. 14, 2001, at 3:30 p.m.

The Sacramento County District Attorney's Office is prosecuting the case. Lewis could face up to five years in state prison and/or a maximum fine of $50,000 if convicted.