Former California insurance broker accused of stealing premiums, leaving clients uninsured
A former Yorba Linda insurance broker was arrested and charged with 81 counts of felony after investigators said he collected premiums from clients but failed to provide coverage and tampered with their insurance documents, California Department of Insurance officials said.
Juan Carlos Martinez, 56, a former insurance broker whose license expired in 2016 for non-renewal, operated Leeds Insurance Services Inc., based in Orange. He has been accused of embezzling more than $ 27,000 from his clients, according to a press release from the agency this week.
Martinez is also accused of diverting the funds to a personal investment account, which he allegedly used to withdraw money.
He was charged with 12 counts of robbery, 34 counts of counterfeiting, 34 counts of insurance fraud and one count of money laundering. Prosecutors allege his misconduct dates back to 2011, court records show.
It was not immediately clear how many casualties there were or how long Martinez had been operating his business.
Martinez was arrested by the Buena Park Police Department and held in Orange County Jail, but released on bail. His appearance is scheduled for March.