View this article online: https://www.insurancejournal.com/news/west/2001/12/17/15661.htm
Following a combined two-and-a-half-year investigation by the California Department of Insurance (CDI) Fraud Division and Investigation Bureau, two Sacramento residents were arrested on charges of insurance fraud.
Charles Edward Dunbar, 66, and his son Christopher Freeman Dunbar, 43, were arrested after surrendering to authorities on one felony count each of insurance fraud and booked into the Sacramento County Jail. Bail was set at $15,000 each, and if convicted, both could face up to five years in state prison and/or a maximum fine of $50,000.
On Nov. 25, 1998, investigators received an anonymous letter authored by a former employee of Dunbar & Associates Insurance Services. The letter indicated that Dunbar & Associates had engaged in a number of fraudulent and illegal activities, which included allegedly padding premiums, embezzlement and forgery.
On April 27, 2000, CDI Investigators executed a search warrant on Dunbar & Associates Insurance Services located at 3445 American River Drive, Suite D, Sacramento, and related locations. During the search, investigators seized boxes of client files, employee computers and hard drives, bank records, copies of check ledgers, and large amounts of cash and coins.
After interviewing former employees and clients of Dunbar & Associates Insurance Services, supported by documentation, it was discovered that from January 1994 through April 27, 2000, Charles Dunbar and Christopher Dunbar allegedly kept insurance money (returned premiums and credits) that should have been returned to numerous clients. Charles Dunbar allegedly took monies totaling $13,682.50 and Christopher Dunbar allegedly took monies totaling $27,450.30, altogether totaling $41,132.80, in which they were not entitled to.
In addition, Christopher Dunbar is alleged to have failed to place coverage for his client, “Florin Center”, and converted the monies collected on Oct. 8, 1996 from MacLaughlin & Company for Walter & Dorothy Anderson, d.b.a. Florin Center, totaling $6,014, for the 1995/1996 policy period to an Agent Broker Fee.
Christopher Dunbar allegedly supplied MacLaughlin & Company with a false Certificate of Insurance, leading the clients to believe that proper insurance coverage was in place during this policy term.