An Anaheim agent was arrested as the result of an investigation by California Department of Insurance’s (CDI) Criminal Investigations Branch. Gary Stromme, 47, was arrested at his Anaheim business office on May 9, 2002 by members of CDI’s fraud division. Stromme plead guilty to two felony counts of grand theft in Orange County Superior Court.
Stromme was sentenced to serve 365 days in Orange County Jail, placed on five years of formal probation, and ordered to pay full restitution to his victims. Several of Stromme’s victims were a Loyal Order of Moose Lodges that paid him insurance premiums without reportedly receiving a valid policy. Stromme obtained an insurance premium from the Moose Lodges without remitting it to the insurance company and then allegedly issued fraudulent insurance certificates to the individual Moose Lodges.
Stromme surrendered to Orange County Superior Court on Jan. 30, 2003 to begin his incarceration. Stromme will be able to have his sentence reduced to 120 days only if he pays full restitution in the amount of approximately $140,000 on his date of his surrender. If Stromme fails to make full restitution in accordance with the plea agreement, he will serve a full year at Orange County Jail.
An order of immediate suspension was issued against Stromme’s insurance license and additional administrative action is pending.
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