Southern CA Insurance Agents Accused of Policy Scheme
Posted on Wednesday, May 23rd, 2018 at 11:37 am
In March 2018, four life insurance agents in California were arrested for stealing $1.9 million in advance commissions. According to authorities, they accomplished this by submitting fraudulent life insurance applications.
Insurance fraud is a serious charge that may negatively impact every facet of your life. If you are under investigation for this offense, you should reach out to a highly skilled Los Angeles fraud defense attorney at Spolin Law P.C.. Call us at (310) 424-5816, or reach out through our online form to schedule a free case consultation.
Information on the Southern CA Insurance Policy Scheme
Mohammed Kakooza (44), Margret Birabwa (35), Michael C. Monday (43), and Denis E. Osikol (36) were all involved in this newsworthy life insurance policy scheme. Kakooza created a referral program and paid life insurance applicants $25 to $50 for referring their family members and friends. Authorities explained that some applicants were told they were applying for life insurance, and that Kakooza would reach out to them with premium payment details.
In some cases, premium payments were paid for from the bank accounts of Kakooza and the other three men rather than the applicants. According to authorities, life insurance applications were submitted with forged signatures, and the applicants knew nothing about them. False information about occupation, income, network, and beneficiaries was included on these applications.
Although the majority of these policies were processed and placed without any issues, they eventually lapsed because the premiums weren’t being paid. Between May 2013 and July 2017, Monday and Osikol submitted more than 600 fraudulent applicants to more than a dozen life insurance companies.
More than $1.2 million in commissions were deposited into Birabwa’s bank account while almost $700,000 were deposited into Kakooza’s bank account and more than $12,000 were deposited into Osikol’s bank account. Although Birabwa and Kakooza collected most of the commission money from the insurance companies, Monday and Osikol did receive some money directly from Birabwa and Kakooza.
These four men were arrested after a joint investigation by the California Department of Insurance and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. In the event they are found guilty, each man will each spend between 16 and 25 years in jail.
California Insurance Commissioner Dave Jones explained that he does not tolerate dishonest insurance agents who scam both consumers and insurance companies. He hopes that the arrest of these Southern California insurance agents will warn other agents who are committing similar crimes.
What is Insurance Fraud?
Insurance fraud can occur with life insurance policies, health insurance plans, car insurance, homeowners insurance, and more. One example of this crime is creating illegitimate applications in an attempt to make money from an insurance company.
Insurance fraud may also occur when someone intentionally destroys their home or stages a motor vehicle accident so they can be compensated by their insurer. Regardless of the details, this type of fraud may lead to harsh penalties that can take away your freedom.
Contact Spolin Law P.C. for Help Today
If you’ve been arrested for insurance fraud, you should reach out to a criminal defense attorney from Spolin Law P.C. as soon as possible. For a free, initial case evaluation, contact us today at (310) 424-5816.