Investigators from the California Department of Insurance (CDI) Criminal Investigations Branch arrested a Cerritos insurance broker based on evidence gathered which allegedly shows the broker collected premiums and failed to obtain insurance coverage. The Los Angeles County District Attorney’s Office is prosecuting the case.
John Sik Lee, 32, is charged with one felony count of grand theft and bail is set at $20,000. If convicted, Lee could face up to one year in county jail or state prison and be ordered to pay restitution.
According to the CDI Investigation Bureau, Lee reportedly operated an office initially located in Los Angeles and later Cerritos using two different names: United Physicians Capital and NK Healthcare Insurance Agency.
On Aug. 28, 2001, Lee allegedly collected a premium payment in the amount of $2,333 as payment on a professional liability insurance policy. Lee failed to send the payment to the insurance carrier and converted the premiums to his own use. Lee’s failure to obtain insurance protection for a practicing physician exposed the physician to the potential of an uncovered loss.
An investigation into the theft of additional potential insureds premium monies is continuing.
Topics California Fraud Agencies
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