Fraud Roundup
Long Beach Broker-Agents to Pay Restitution for Bogus Insurance
Insurance broker-agent Carlos Macias, and former insurance broker-agent Yvette Diaz (aka Yvette Benitez) have been convicted and sentenced in connection with a scheme that involved stealing insurance premiums and issuing phony insurance certificates, according to the California Department of Insurance.
Macias, from South Gate, Calif., and Diaz, residing in Miami, operated International Commercial Insurance in Long Beach, Calif. CDI investigators discovered that Diaz collected at least $13,507 in insurance premiums from five clients and failed to secure coverage. Instead of sending payments to the insurance companies, Diaz issued bogus proof-of-insurance documents. Although Diaz was unlicensed, Macias allowed her to illegally transact insurance through his office.
The five victims were owners of trucking businesses who paid premiums to Diaz from March 2003 through Oct. 2003. They were led to believe they were receiving commercial trucker insurance policies.
Macias was convicted on two misdemeanor counts of transacting insurance without a license — for aiding and abetting Diaz in the transaction of insurance without a license. Macias was sentenced to three years summary probation, 30 days of community service and ordered to pay restitution and court fees.
Diaz pleaded guilty to five felony counts of grand theft. She was sentenced to four years and four months in state prison and was given credit for 306 days she served in the Los Angeles County Jail. The remainder of the prison sentence was suspended and Diaz was ordered to serve five years formal probation, pay restitution in the amount of $13,508 to the victims and pay a fine and court fees.
The case was investigated by CDI’s Investigation Division’s Los Angeles Regional Office and prosecuted by the Los Angeles County District Attorney’s Office.
Penn Valley, Calif., Agent Sentenced for Fraud and Petty Theft
James Sepeda, a former insurance agent from Penn Valley, Calif., has been convicted of one felony count of insurance fraud and three misdemeanor counts of petty theft, according to the California Department of Insurance.
The conviction resulted from an investigation conducted by CDI’s Investigation Division. According to investigators, Sepeda misappropriated more than $44,000 in insurance premiums between Dec. 2004 and April 2006. As part of the plea agreement, Sepeda was placed on five years supervised probation, sentenced to 120 days in jail, 300 hours of community service, and ordered to pay victim restitution.
Sepeda owned and operated Buttes Insurance Agency in Penn Valley. According to investigators, Sepeda collected insurance premiums from clients for commercial general liability and commercial automobile insurance and failed to remit the premiums to insurers. All of the victims believed they were insured when, in reality, they had no coverage. Buttes Insurance Agency is now under new ownership.