Former California Claim Adjuster Pleads Guilty to Embezzling $289K
Elizabeth Louise Brown, 48, of Canyon Country, Calif., a former claims adjuster with Explorer Insurance, pleaded guilty to two counts of insurance fraud with a white collar crime enhancement penalty for crafting an elaborate scheme to defraud her employer of more than $289,000.
Brown was sentenced to four years in state prison and ordered to pay $289,999 in restitution.
According to California Department of Insurance detectives, between January 2013 and September 2015, while employed by Explorer Insurance as a claims adjuster, Brown embezzled from the company by adding friends and family members to claims, which resulted in the insurer issuing fraudulent payments to Brown’s co-conspirators.
In the end, Brown reportedly embezzled more than $289,999 from her employers.
Evidence of Brown’s alleged crimes were discovered by Explorer Insurance when they identified fraudulent checks issued in 87 claims assigned to her. Explorer terminated Brown’s employment and reported the suspected crimes to the department, which launched a criminal investigation.
“Brown’s crimes were an egregious violation of her trusted position as an insurance professional,” Insurance Commissioner Dave Jones said in a statement.
Fifteen of Brown’s co-conspirators were also arrested and to date, seven have entered guilty pleas. Another four suspects remain at large and are being sought by department detectives.
This case is being prosecuted by the Los Angeles County District Attorney’s Office Auto Insurance Fraud Division.
Related:
- Rising Prices, Low Satisfaction Drive 49% of Customers to Shop For New Auto Insurance
- Insurers Get Green Light to Pay Less Than Billed Charges in Florida PIP Cases
- An Origin Story: The History of the Professional Liability Underwriting Society
- Miami Retirement Fund Class Action Alleges Globe Life Officers Concealed Fraud