Agent Sentenced for Felony Insurance Fraud

John Vernon Liller, 53, of Carson City, Nev., was sentenced after pleading guilty to felony fraud charges.

Liller was the owner and agent at a Farmers Insurance office for over 22 years. Between March 2000 and March 2001, Liller allegedly took money from clients that was intended for the purchase of insurance and misused the funds.

Liller was sentenced 12 to 48 months in prison but was later placed on probation and ordered to pay $14,000.00 in restitution.

Orange Cty Agents Plead Guilty to Theft, Conspiracy

Two former insurance agents have been sentenced to imprisonment and ordered to pay $322,000 in restitution after an investigation by the California Department of Insurance revealed the two had allegedly stolen insurance premiums from more that 500 fraudulent auto insurance policies they sold.

Manuel Antonio Mendez, 37, and Jeffrey Warren Ferguson, 38, pled guilty to eight counts of grand theft and conspiracy in the case. Mendez was sentenced to six years in prison and Ferguson must serve one year in county jail.

According to investigators, between March 1999 and Aug. 2001, Mendez and Ferguson allegedly sold the fraudulent insurance policies to unsuspecting consumers, primarily in the Hispanic community. The men collected premiums but reportedly never submitted them to insurance carriers, retaining the money for themselves. Their illegal activities left hundreds of victims without valid automobile coverage and exposed California drivers to the threat of collisions with uninsured motorists and the related financial consequences.

The Orange County District Attorney's Office prosecuted the case, which unearthed $322,210 in fraudulent premiums paid by the victims. To date, Ferguson has paid $100,000.00 in restitution.

San Diego Trio Pleads Guilty to WC Scam

Three San Diego residents must pay more than $125,000 in restitution after pleading guilty to insurance fraud.

The convictions followed an investigation by the California Department of Insurance (CDI) Investigation Division, which found that the trio's American Employees Benefits Association (AEBA), allegedly marketed an illegal employee benefit package billed as an "alternative to workers' compensation insurance." Duped employers did not learn the truth until claims were filed for injured employees.

In the AEBA case, the three suspects marketed a package offered by the United Employees Trade Association falsely claiming it "meets and exceeds all state requirements for workers' compensation insurance." Businesses that bought the insurance were left without coverage when employees filed claims and were also subject to fines for not having valid insurance.

The suspects include Richard White, 70, who pled guilty to three felony counts of transacting insurance without a certificate of authority. Gary Miller, 58, pled guilty to one misdemeanor count of transacting insurance without a certificate of authority. On Aug. 21, both White and Miller were sentenced to five years probation. White was fined a total of $92,609 and Miller fined $1,286 and sentenced to perform 15 days of public service. The two men were also ordered to pay $27,602 in restitution to two of the victims.

The third suspect, Monique Martinez, 57, pled guilty to one misdemeanor count of misrepresentation of the terms of an insurance polocy. At the time of the plea agreement on April 11, she was fined $200.