Ex-insurance broker sold fake policies, pocketed money, California officials say

An ex-insurance broker in Southern California faces charges that he sold bogus policies and pocketed $27,000 in premiums, state officials said.

Juan Carlos Martinez, 56, of Yorba Linda, continued to sell policies after his license as an insurance broker expired in 2016, the Department of Insurance said in a news release.

But the policies were forged and the premiums went to his own personal investment accounts, which he then withdrew as cash, officials said.

“Fraud ultimately hurts consumers and our recovering economy,” Insurance Commissioner Ricardo Lara said in the release.

Along with stealing their money, Martinez left would-be customers thinking they were insured when they were not, exposing them to potential financial losses and liability, the release said.

He faces more than 80 felony charges, including 12 counts of grand theft, 34 felony counts of forgery, 34 counts of insurance fraud, and one count of money laundering.

Buena Park Police Department officers arrested Martinez at a booth in the Knott’s Christmas Crafts Village, the release said. The Orange County District Attorney’s office will prosecute the case.

You can check whether an insurance broker is licensed at www.insurance.ca.gov. If you feel you may be a victim of fraud, call the department at 800-927-4357.

This story was originally published December 20, 2021 at 8:35 AM with the headline "Ex-insurance broker sold fake policies, pocketed money, California officials say."