News: 2007 Press Release

SACRAMENTO ― Insurance Commissioner Steve Poizner announced today that thanks to the hard work of his California Department of Insurance (CDI) Investigation Division, two former insurance agents have been brought to justice. Cynthea Ann Eckhart, 40, of Salinas, was sentenced to twelve months in county jail, ordered to pay $225,000 in restitution and serve five years probation. Eckhart pled no contest to twenty-seven felony counts, including grand theft, grand theft by embezzlement, insurance fraud, forgery and transacting insurance without a valid certificate. The Santa Cruz County District Attorney's Office prosecuted this case.

CDI launched an investigation that revealed Eckhart had issued fraudulent automobile insurance identification cards, homeowners certificates of insurance, and evidences of liability insurance to several customers. Eckhart also collected more than $700,000 in insurance premium payments from her victims and premium financing companies for which there was no existing insurance policies; and failed to remit the premium payments collected.

A former employee of Hansen Insurance Agency in Watsonville, Eckhart sold insurance policies to the agency's unsuspecting clients, collected their premium payments and issued them fraudulent certificates of insurance. Eckhart never placed coverage or forwarded the premiums she collected to the insurance companies. Eckhart used Hansen's clients' personal and business information to apply for premium financing. Eckhart then collected premiums from the finance companies and diverted the monies for her personal use.

Insurance Commissioner Steve Poizner also announced today that a former Allstate Insurance Company employee has been brought to justice after repeatedly breaking the law. In July, Linda Carol Rehrig (A.K.A. Linda Carol Finley) was arrested at her home in Fremont. A former employee of Allstate Insurance Company in Woodland Hills, Rehrig allegedly committed eight felony counts of grand theft and forgery.

On October 22, 2007, Rehrig pleaded no contest to one felony count of grand theft, and was sentenced to serve seven days in Los Angeles County Jail, placed on 36 months of formal probation, ordered to perform 250 hours of community service, pay $220 in court fees and fines. During her August arraignment, Rehrig paid full restitution of $9,000 to Allstate, as well as $4,000 to the California Department of Insurance to cover investigative costs. The Los Angeles County District Attorney's Office prosecuted this case.

In March 2004, CDI's launched an investigation after receiving a complaint that Rehrig allegedly altered claims records and claims checks, and issued settlement checks to herself. The investigation revealed that during a five month period, Rehrig defrauded Allstate of nearly $9,000.

"I simply will not tolerate insurance agents who swindle California consumers out of their hard-earned money," said Commissioner Poizner. "Fraud perpetrators like Ms. Rehrig and Ms. Eckhart strain the overall rapport between agents and their clients, and hurt consumers and businesses alike. My Department continues to actively pursue these bad actors and will bring them to justice."