Calif. Sweep Nets Four Fraud Suspects

Starting Feb. 24, investigators from the California Department of Insurance’s Fraud Division conducted joint operations in the Central Valley to execute outstanding arrest warrants.

CDI partnered with the Fresno District Attorney’s Office, Fresno Police Department, and the Tulare County District Attorney’s Office for operations in Madera, Merced, Fresno, and Tulare Counties. Victor Aguilar, of Merced; Gloria Cortez Keene, of Merced; Kimberly Elaine Knight, of Fresno; and Steven Rodney Upshaw, of Madera were arrested Feb. 24. If convicted, each suspect could face five years in prison and/or a maximum fine of $50,000.

In the first case, Aguilar was charged with two felony counts of insurance fraud and grand theft. In December 2004, the California State Automobile Association’s Special Investigation Unit advised CDI of a call from a victim in a domestic violence case who stated that her boyfriend, Aguilar, had made a fraudulent insurance claim regarding the burglary of his residence. Investigators subsequently recovered a large amount of furniture and other items which had been claimed as stolen.

Investigators reportedly later determined that Aguilar reported the burglary after a previous domestic violence incident which caused his girlfriend to move to a domestic violence shelter. When the victim moved out, Aguilar accused her of taking his personal property. The victim stated that the items which he reported stolen were actually hers; when she moved out she placed them into storage.

However, Aguilar allegedly discovered the location of the stored items and returned them to his residence prior to concluding his insurance claim. Nevertheless, Aguilar reportedly completed his insurance claim and was paid approximately $2,400 for the items by CSAA.

In the second case, Keene, a former member of the Merced County Board of Supervisors, was arrested for auto insurance fraud. She faces two felony counts of presenting a false or fraudulent claim and presenting a false statement regarding an insurance claim. The case is being prosecuted by the Sacramento County District Attorney’s Office.

This case was referred to CDI by United States Automobile Association Insurance, who suspected fraudulent activity in an automobile claim filed by Keene in 2003.

USAA paid $2,500 for the collision damage on a claim that allegedly occurred on Jan. 20, 2003. During the investigation, however, information surfaced that the damage reported by Keene was the same damage observed on the vehicle when it was owned by Keene’s daughter, Julie Valdez. An independent witness reportedly stated that the damage originally appeared on the vehicle on Feb. 19, 2002, and was reported to USAA by Julie Valdez as having occurred on April 19, 2002. Valdez is currently facing insurance fraud charges in Merced County. Keene allegedly added the same vehicle to her policy on Oct. 28, 2002, and reported the alleged, Jan. 20 loss on June 11, 2003. A comparison of the damage showed it was the same damage.

In the third case, Knight and Upshaw were both charged with three felony counts each of insurance fraud, willful destruction of insured property, and presenting a false insurance claim for auto theft.

Topics California Auto Fraud