Former Broker Convicted of Grand Theft
Alexander Silva, of Sylmar, Calif., a former insurance broker, pled guilty Oct. 22, 2004, to one count of grand theft. Silva was sentenced to 30 days in Los Angeles county jail, five years probation, and ordered to pay $25,806 in restitution.
Silva was arrested July 8, 2004 by California Department of Insurance, Investigation Division (CDI) investigators. An investigation conducted by CDI revealed that from March 2001 through June 2001 Silva collected at least $12,619 in insurance premiums and issued fraudulent insurance documents for personal automobile and commercial liability insurance coverage. The investigation determined that the premiums collected by Silva were never forwarded to any insurance companies.
Five of Silva's victims were exposed to liability by either driving without insurance or conducting business without the appropriate commercial insurance coverage. One of Silva's victims experienced an uninsured automobile loss and is currently involved in litigation with another party because of that lack of coverage.
Former Bay Area Agent to Serve Jail Time
On Oct. 27, Herbert Amos Jones, of Bethel Island, Calif., pled guilty in Contra Costa Superior Court to one felony count of grand theft. Jones, a former California-licensed insurance agent and regional vice president of Primerica Financial Services (PFS), was arrested as the result of an investigation by CDI.
Jones was sentenced to time served in county jail (44 days), two years felony probation, and ordered to pay $25,000 in restitution to PFS, which had already reimbursed the victims for their losses. Jones was arrested in Florida in September 2004 and extradited to California.
CDI's investigation disclosed that Jones, who surrendered his insurance license when he fled the Golden State, convinced a 69-year-old woman and her 38-year-old daughter to invest $25,000 with him. Jones diverted the mother-daughter funds, failed to secure valid proof of the investments, then submitted incomplete, falsified documents to the daughter in an effort to hide his crime. The investigation also revealed that the daughter's U.S Postal Service pension plan was cleaned out, causing her additional tax penalties. PFS' restitution to the victims included reimbursement of those penalties.
Adjuster Arrested on Fraud, Theft Charges
Michael Anthony Green of Hawthorne, Calif., surrendered to Orange County authorities after a warrant had been issued for his arrest. His arrest is the result of an investigation by the CDI. Green is charged with two felony counts of insurance fraud and five felony counts of grand theft. The case is being prosecuted by the Orange County District Attorney's Office. If convicted on all seven counts, Green could face a maximum sentence of eight years in state prison and a minimum $150,000 fine.
Green was employed as a temporary claims adjuster with Robert Moreno Insurance Services (RMIS), located in Fullerton, Calif. On Feb. 11, 2003, RMIS alleged to CDI that Green was issuing unauthorized bodily injury settlement checks.
Five claim files dating from Jan. 16, 2002, through Aug. 4, 2002, all involving automobile collisions, were identified by RMIS. In these five claim files, five checks totaling $33,650 were allegedly initiated by Green for the settlement of bodily injury claims that allegedly never occurred. The suspect allegedly authorized checks from these five claim files made payable to individuals who were not involved in automobile collisions. The checks were then cashed, and the money was reportedly used by Green.
