Former L.A. Broker Convicted of Stealing Insurance Premiums

Martin McCloskey, 69, of Piñon Hills, Calif., pleaded guilty this week to three felony counts of grand theft and theft of fiduciary funds after defrauding his customers by failing to remit to insurance companies more than $58,000 in premiums he collected for commercial property and liability coverage.

After receiving a complaint from an insurance company, investigators with the California Department of Insurance’s discovered Martin McCloskey, a licensed broker, failed to remit the entire insurance premium he received from policyholders to the insurance company from Oct. 1, 2009 through Dec. 31, 2011.

The insurance company extended coverage to the policyholders affected by the shortage in premiums. The department revoked McCloskey’s license on Dec. 6, 2012.

“McCloskey violated his clients’ trust and left them at great financial risk when he stole their premiums and left them without coverage,” Insurance Commissioner Dave Jones said in a statement.

Sentencing is scheduled for Dec. 1.