Following a combined three-year investigation by the California Department of Insurance (CDI) Criminal Investigations Branch’s Fraud Division and Investigation Bureau, two Sacramento residents appeared in Sacramento County Superior Court on Oct. 17, 2002, to plead guilty to charges of Grand Theft.
Charles Edward Dunbar, 66, and his son Christopher Freeman Dunbar, 43, were arrested on Dec. 13, 2001, after surrendering to authorities on one felony count each of Grand Theft and booked into the Sacramento County Jail. The Sacramento County District Attorney’s Office prosecuted the case.
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 padding premiums, embezzlement and forgery. Dunbar & Associates is licensed by CDI as a fire and casualty broker/agent from Aug. 10, 1995 to Aug. 31, 2003.
On April 27, 2000, CDI investigators executed a search warrant at Dunbar & Associates and related locations. 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, supported by documentation, it was discovered that from Jan. 1994 through April 27, 2000, Charles Dunbar and Christopher Dunbar allegedly committed insurance fraud by keeping 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 allegedly 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, (DBA 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.
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