Calif. Husband, Wife Receive Sentence

James Gus Sdrales, 33, was sentenced in San Diego Superior Court on Dec. 3, to one year of work furlough and five years of felony probation. The sentencing is the result of his guilty plea to two felony counts of insurance fraud and two felony counts of forgery. Sdrales owned and operated Sdrales Insurance Agency located in Orange, California.

Sdrales’ wife, Alexandrea K. Sdrales, 37, owner of S.I.A. Insurance Agency, was sentenced to three years probation as the result of her guilty plea to a misdemeanor violation of the California Insurance Code for allowing her husband to transact insurance under her license.

As part of their sentences, the defendants were ordered to pay restitution totaling $115,518 to 14 insurance companies. This amount included a $10,000 contribution to the California Department of Insurance (CDI) Statewide Fraud Fund. The stipulated restitution was satisfied in full prior to sentencing.

The convictions are the result of a joint investigation by the CDI Criminal Investigations Branch’s Investigation Bureau and the San Diego District Attorney’s Office Insurance Fraud Unit.

Investigators learned James Sdrales allegedly forged loss run documents that were submitted to various insurance companies to obtain workers’ compensation insurance policies at discounted premium rates. As a result of accepting these fraudulent loss runs, the carriers issued policies at a lower cost or extended coverage to businesses the insurers would not normally cover.

Insurance Commissioner Harry W. Low ordered the summary revocation of both the Sdrales’ insurance licenses based upon these convictions on Nov. 5, 2001. The revocations are effective Dec. 5, 2001.

Topics California Fraud