Fraud Roundup

Northridge agent arrested in scheme to rob senior citizens
California Department of Insurance (CDI) investigators have arrested a former Northridge, Calif., insurance agent who allegedly took more than three quarters of a million dollars from senior citizens and their families for investments and annuities, then never made the promised investments.

Ruben Echiverri Cu, 56, was arrested by CDI Fraud investigators on Oct. 31, 2006. He was charged with five felony counts of grand theft and 15 felony counts of securities fraud, including sales of unqualified securities, sales of securities without a certificate, and making false statements in the sale of a security. Bail is set at $1.17 million.

In August 2004 the Department received a complaint from Shirley and Howard Horlick, alleging that life insurance agent Ruben Cu had offered to advise them on insurance annuity investments. Instead, they were convinced to refinance their mortgage-free home and invest a total of $317,000 into Cu’s corporations for a return of 14 percent to 20 percent on their investment. Cu paid back only a small portion of their principal investment. The Horlicks have been unable to collect the balance of the money promised to them by Cu.

The CDI Investigation Division also discovered that Cu allegedly convinced other senior citizens to invest in his corporations where he issued promissory notes yielding high rates of return, but failed to make payments. Cu allegedly accepted more than $774,418 from five senior citizens and two other clients.

On Oct. 18, 2006, the Los Angeles County District Attorney’s Office filed charges against Cu. The filing stemmed from an investigation conducted by CDI’s Investigation Division, Valencia regional office. The Los Angeles County District Attorney’s Office, Major Frauds Division is prosecuting the case.

Gorrocino ordered to cease and desist
The Colorado Division of Insurance has issued an Emergency Cease and Desist Order against Joseph Gorrocino for transacting bail bond business without a license.

The division launched an investigation after several complaints were received. The investigation revealed that Gorrocino was providing misleading advertising, signing bail bonding documents and collecting consumer’s premium and cash collateral. He did not post the bonds.

The Division’s records show that Gorrocino has never held a license to transact insurance in Colorado. He has failed to respond to the Insurance Commissioner’s order and has not provided the information that was requested. The Division is concerned that there may be additional Colorado consumers who have given money to Gorrocino for the posting of a bail bond and may not realize that bail bonding agents are required to be licensed.

A copy of the Emergency Cease and Desist order can be viewed at www.dora.state.co.us/ insurance/

Complaint filed against broker
The California Insurance Commissioner’s office is asking consumers to contact the California Department of Insurance (CDI) if they believe they have been victimized by Roseville insurance broker Mindy Elizabeth Latorre. The 34-year-old Lincoln woman has been charged with 115 additional felonies in a second criminal complaint filed by the Placer County District Attorney’s Office.

The charges against Latorre include grand theft of insurance funds, insurance fraud and forgery. It also alleges she collected $151,007.85 in premiums from her clients and diverted those funds for her personal use.

Latorre was previously charged on Aug. 11 in a 58 count felony complaint alleging grand theft, forgery and insurance fraud. It charges that between April 2003 and June 2006, she collected more than $116,000 in insurance premiums from her clients and diverted the funds for her personal use. According to investigators, the funds were to be used for the placement of commercial general liability, commercial property, workers’ compensation, and commercial automobile insurance. Latorre also allegedly issued fraudulent certificates of insurance to her clients indicating they had legitimate insurance coverage. Latorre has been in jail since her arrest and her bail is currently set at $300,000.

Latorre operated Latorre Insurance Services in Roseville. On Aug. 16, then Commissioner John Garamendi issued an order suspending Latorre’s insurance license and prohibiting her from participating in any manner in the business of an insurer or insurance production agency.

Persons who believe they are victim are being encouraged to call the CDI Investigation Division at 916-492-3400.