News: 2009 Press Release
For Release: September 11, 2009
Media Calls Only: 916-492-3566
Insurance Commissioner Poizner Announces Two San Jose Residents Arrested for Suspected Auto Insurance Fraud
Insurance Commissioner Steve Poizner announced the arrests of two San Jose residents in connection with automobile insurance fraud charges. Juan Carlos Valencia, 24, was arrested on August 28. Linda Maria Jenny Jaramillo, 23, surrendered to authorities on August 31. Bail was set at $15,000 for each suspect. Suspects face a penalty of up to five years in prison and/or $10,000 in fines.
"Insurance fraud perpetrators drive up the cost of insurance for everyone," said Commissioner Poizner. "No matter what your financial situation is, attempting to defraud an insurance company never pays and is always illegal. CDI detectives will continue to track down anyone who attempts to commit auto insurance fraud."
A CDI Urban Auto Fraud Task Force investigation revealed that Valencia and Jaramillo allegedly committed insurance fraud. Investigators discovered that Valencia and Jaramillo were involved in a non-injury collision on May 26, 2009. Jaramillo was driving with Valencia in the passenger seat. According to both suspects, Jaramillo was backing out of a parking space when she collided with another vehicle. The drivers of both vehicles exchanged information. Jaramillo advised the other driver that she did not have her insurance information with her but would call to share her insurance information when she got home.
Jaramillo and Valencia then allegedly drove to a Geico Insurance office in San Jose to purchase insurance. Shortly after purchasing the policy, Jaramillo called Geico and advised them that she had been in an accident after leaving the office. She then called the driver of the other vehicle and gave him her new insurance information. When Geico began to investigate the suspicious timeline of the accident, Valencia and Jaramillo withdrew the claim. Both Jaramillo and Valencia gave recorded statements to Geico Insurance, and both confessed that they purchased insurance after the accident.
This case is being prosecuted by the Santa Clara County District Attorney's Office.
The California Department of Insurance Urban Auto Fraud Task Force is comprised of investigators from the California Department of Insurance, CHP and the Santa Clara County District Attorney's Office.
Commissioner Poizner oversees sixteen CDI Enforcement Branch regional offices throughout the state. Close to 1900 insurance fraud-related arrests have been made by the Department of Insurance's enforcement division since Commissioner Poizner took office in 2007 - more arrests than have been made during any other two year period, under any previous insurance commissioner.
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