CDI Revokes Central Valley Life Agent's License For Fraud
News: 2013 Press Release
SACRAMENTO -The California Department of Insurance (CDI) today announced it has revoked the Life-Only and Accident & Health Licenses of agent Karima Ali, of Fresno, and her insurance agency, Brawley Insurance Services, Inc. for fraud. According to investigators, Ali and her husband, Hussein, filed a false insurance license application under the name of Golden Umbrella Insurance Services, Inc. The pair used personal information, including the license number, of a former employee.
"The lengths of deception that were resorted to in this case are shocking," said Commissioner Jones. "I am pleased with the collaborative effort between my Department and the Department of Managed Health Care (DMHC) to see that these bad actors were stopped from preying on consumers."
DMHC issued an order barring Hussein from operating as a Solicitor of Health Care Service Plans (Medicare Advantage). The order was based on CDI's denial of his insurance license and felony convictions for mail fraud in 2000 and bank fraud in 2011.
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The following is a timeline of activities and actions leading up to Hussein and Karima Ali's License revocation:
- 2008 - Hussein's application for an insurance license is denied due to his 2000 felony mail fraud conviction;
- 2009 - Karima is issued a license from CDI to act as a Life-Only Agent and an accident and Health Agent;
- 2010 - Documents are filed with the Secretary of State on behalf of Brawley that identify Hussein as President and CEO;
- September 2011 - Hussein is convicted in federal court of conspiracy to commit bank fraud;
- October 2011 - Karima renews Brawley's insurance license;
- December 2011 - An entity named Golden Umbrella Insurance Services, Inc. files for incorporation with the Secretary of state, using the Alis' address;
- July 2012 - The Alis file a false license application with CDI on behalf of Golden Umbrella Insurance Services, Inc. using personal information of a former employee;
- November 2012 - Following an Administrative hearing, CDI issues an order revoking the insurance licenses held by Brawley and Karima Ali. The revocations are effective 30 days from the date of the order.
Top Seven Tips to Protect Consumers
- Do not give personal information, such as Social Security numbers, bank account numbers, or credit card information to anyone you don't know.
- Be wary of unsolicited calls or visits at home, or an approach by someone at your doctor's office, pharmacy or hospital.
- Do not take calls from someone claiming to be from Social Security or Medicare. Legitimate representatives from these programs will not call or come to your home.
- Read and understand the health plan information.
- Consult family and friends before purchasing any health plan.
- Finally, read and understand any product you may be considering before you buy.
- Verify the license of your insurance agent by going to the CDI web site, www.insurance.ca.gov/. Make sure it's valid and no actions or complaints have been made.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California, regulating the $123 billion insurance marketplace. In 2013 the California Department of Insurance received more than 170,000 calls from consumers and helped recover over $63 million in claims and premiums. Please visit the Department of Insurance web site at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.HELP or 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.