Calif. Broker Arrested on Seven Counts of Grand Theft

Insurance broker Robert Stephen Rice was arrested on seven felony counts of grand theft at his home in Thousand Oaks, California, by the CDI Fraud Division.

The arrest is the result of an investigation by CDI. The Van Nuys District Attorney’s Office filed a felony complaint and arrest warrant against suspect Rice on April 11, 2005.

According to investigators, CDI received several complaints from Rice’s insurance clients alleging that they had paid Rice thousands of dollars in insurance premium, but had not received policies or refunds. During a period of November 2001 through February 2004, Rice allegedly accepted more than $262,666 in insurance premium monies from seven victims for general liability/construction wrap policies and commercial apartment building policies. Construction wrap policies cover general contractors, subcontractors, architects, etc., under one policy for a period of 10 years after a project is completed for any construction defect problems that may arise.

Rice allegedly did not send the premium monies he accepted from the victims to the insurance carriers. Instead Rice allegedly created bogus documents and forged signatures of insurance company executives and presented the bogus documents to the victims as evidence of insurance. However, the policies did not exist, which put the victims at risk.