Licensed insurance broker illegally pocketed more than $500,000
News: 2015 Press Release
LOS ANGELES, Calif. - Arthur Cade, 60, a licensed insurance broker-agent was arrested on three felony counts of grand theft for stealing more than $100,000 from a Los Angeles Unified School District (LAUSD) Owner Controlled Insurance Program and over $400,000 from other programs that his employer, DACM Project Management, aka Dugan & Associates, managed.
Cade was the employee that controlled funds for programs his employer managed, including LAUSD's rewards and recognition program, established to influence safe behavior and management on new construction sites for LAUSD.
"No matter what form insurance fraud takes, it harms insurers, consumers and California's economy," said Insurance Commissioner Dave Jones. "Thanks to the efforts of the Los Angeles County District Attorney's office and assistance from Department of Insurance investigators, we were able to ensure there was no further theft from these programs."
An investigation began after another employee at Dugan &Associates reviewed the program funds trust account and discovered Cade was allegedly diverting program funds to his personal account from 2009 to 2012.
Cade was booked at the LAPD Jail Division and his bail is set at $318,000. He faces up to 12 years in state prison if convicted on all counts. The Los Angeles County District Attorney's Office White Collar Crime Division headed this investigation and is prosecuting this case.
- Arthur Cade's booking photo.
- Arthur Cade is currently a licensed property and casualty broker-agent. The department's legal division is processing a suspension order on his insurance license.
- The stolen funds were derived from LAUSD's Owner Controlled Insurance Program (OCIP).
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $289 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $394 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.