Sacramento Mortgage Broker Arrested in Alleged Auto Insurance Scam

July 7, 2004

Jesse L. Jackson, 34, of Sacramento, was arrested at his residence June 28 and booked into the county jail on two felony counts of insurance fraud and one count of attempted grand theft. His arrest is the result of an investigation by the California Department of Insurance’s Fraud Division (CDI).

Jackson’s bail was set at $8,000. If convicted he could face up to five years in state prison and/or a maximum fine of $150,000. The Sacramento County District Attorney’s Office is prosecuting the case.

“Insurance fraud steals money from all of us through higher premiums,” Insurance Commissioner John Garamendi said. “My department continues its vigilance against fraud and remains committed to working with our local government and industry partners in this collaborative fight.”

In September 2002, Jackson allegedly reported to GEICO Insurance that his BMW 740 had been vandalized and its tires and wheels stolen while parked in a Sacramento nightclub parking lot. While processing the claim, however, GEICO discovered that a similar claim was paid in July 2002 by 21st Century Insurance. CDI’s additional investigation and a review of documents (e.g., photographs, estimates) confirmed that the 21st Century Insurance claim was indeed for the same damages and vandalism as the GEICO claim.

GEICO would have incurred a loss of $10,664 as a result of Jackson’s allegedly fraudulent claim if the 21st Century claim had not been discovered and investigated.

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