Southern California Agents Pleads to Fraud

November 12, 2009

California Insurance Commissioner Steve Poizner today announced that Edwin A. Flores, 33, of Long Beach pled guilty to one count of misdemeanor grand theft and was sentenced Nov. 5 to two years probation, 120 hours of community service and will pay $21,060 in restitution to a life insurance company.

“Insurance agents who try to commit fraud for their own personal financial gain hurt every law abiding person in the form of higher premiums,” said Commissioner Poizner. “If you decide to break the law, CDI investigative teams will find you and help prosecute you.”

According to a California Department of Insurance investigation, from Nov. 2008 through Feb. 2009, Flores intentionally submitted 14 fraudulent applications for life insurance with inaccurate bank draft information to a life insurance company in order to receive advance commission payments totaling $21,060.

The scheme was discovered by the life insurance company when it attempted to collect payments from the bank accounts, which were provided with the applications, but learned from the bank that the accounts were bogus. The insurance company contacted Flores regarding these transactions and he said the company had the wrong account number. Flores gave the company new bank account numbers, which also were fraudulent. Flores eventually signed a promissory note to the insurance company indicating he would pay the money back, which he never did.

During the investigation, Flores admitted that he submitted the life insurance applications with inaccurate banking information in order to receive the advance commission, due to financial problems.

CDI action against Flores’ licenses is pending.

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