California Insurance Agent Convicted of Worker’s Comp Insurance Fraud

Kannai David Scantlen, 41, of Valley Springs, Calif., a former insurance agent conducting business as Kan I Save Insurance Services, was convicted of insurance fraud and sentenced to 60 days, three years of formal probation, and ordered to pay $20,000 restitution.

A joint investigation by the California Department of Insurance Investigation Division and the Amador County Workers’ Compensation Fraud Unit showed Scantlen received premiums from business owners to purchase general liability and workers’ compensation coverage for their businesses but failed to forward the money to the insurer.

Scantlen pocketed roughly $20,000 from six clients, mostly contractors, leaving the businesses and their employees with no liability or workers’ comp coverage.

Scantlen provided his clients with fraudulent insurance certificates showing they had valid coverage, but the policy information on the certificates was bogus. The companies listed on the certificates confirmed they had no record of receiving premium and had no record of coverage for the businesses.

“Scantlen put legitimate business owners at great financial risk when he stole their premium payments and left them without workers’ compensation coverage,” Insurance Commissioner Dave Jones said in a statement.

Scantlen has so far reimbursed $11,000 to his victims. The department is taking action to revoke his license. Scantlen’s agent license is currently suspended.