Hesham Saleh Ibrahim, 57, of Palmdale, Calif., pleaded no contest to felony insurance fraud and was sentenced to three years felony probation, 30 days community labor and ordered to pay nearly $1,000 in restitution and fines.
Ibrahim was charged in July 2015 with six misdemeanor counts of transacting insurance without a license for issuing 114 auto insurance policies. He was also charged with one count of felony insurance fraud for issuing a fraudulent insurance certificate for a $2 million commercial liability policy and pocketing the $350 premium.
The California Department of Insurance investigation division began an investigation after receiving a complaint from a consumer claiming they paid Ibrahim for liability insurance for their business, but did not receive a policy.
Department investigators discovered Ibrahim was transacting business on an expired agent license, operating under Five Star Insurance Agency and Convenience Store. The department contacted Ibrahim and communicated that he was transacting business illegally and should stop immediately. He continued to function as an agent, issuing 15 additional auto insurance policies after receiving the warning, according to the department.
“Ibrahim put the business owner at great financial risk when he issued a bogus insurance certificate,” Insurance Commissioner Dave Jones said in a statement. “The consumer did the right thing by reporting they did not receive a policy from the insurance company, which helped our investigators uncover Ibrahim’s illegal business activity.”
This case was prosecuted by the Los Angeles County District Attorney’s office.
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