An article in the Contra Costa Times reported that California state investigators last week searched three brokers in the East Bay area, including Arvind Insurance Services in Richmond, to check allegations of fraud by brokers selling principally taxicab insurance.
In part of a statewide investigation, officials looking into allegations that Arvind Inc. provided taxicab drivers, from whom it had collected more than $100,000 in premiums, with false insurance certificates. The article quoted insurance investigator Dave Fortman as stating the allegations include forgery, theft of premiums, grand theft and misrepresentation.
State investigators were said to have invalid documents purporting to be proof of taxicab insurance which were allegedly issued by Arvind Inc. Fortman told the Contra Costa Times that of those certificates, one had a nonexistent policy number, another had a policy number which belonged to another person and yet others were for senior citizen transportation, not taxicab, insurance.
California Department of Insurance (CDI) investigators searched brokers in the San Francisco, Los Angeles and San Diego areas last February. Those brokers included Rahi Insurance Agency of El Sobrante and Patacsil Insurance Agency of Oakland. A CDI spokesman stated that while the investigation is ongoing, no charges have yet been filed against any of the agencies or their principals.
Fortman also stated that investigators had discovered a common practice of a broker setting up a false taxicab company, for which there would be a master insurance policy listing individual owner-operators as additional company vehicles.
Topics California Fraud Agencies
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