L.A. Broker Sentenced for Premium Theft

Lory Caballero, of Eagle Rock, Calif., a licensed insurance agent and owner of L.C. Insurance Agency, was convicted of one count of felony grand theft. She was sentenced to five years of formal probation, 20 days of community service and ordered to pay $25,000 restitution to a victim for an uninsured loss.

The case was initiated by the California Department of Insurance, Investigation Division (CDI) after the department received consumer complaints about Caballero and L.C Insurance Agency. The subsequent investigation revealed that Caballero sold insurance policies to Spanish-speaking consumers in the Eagle Rock section of Los Angeles. Caballero collected premiums from consumers but did not remit the money to any legitimate insurance company. Caballero$(Bs (Bfraudulent activities exposed at least one injured party to an uninsured loss following an auto accident.

According to the CDI, Caballero targeted the Spanish-speaking community so that any language barrier experienced by the consumer would help shield her fraudulent business practices. One victim became concerned because no proof of insurance was received from the purported insurance company. When confronted with this concern, Caballero created excuses for the non-receipt of the proof of coverage.

Topics Agencies Fraud