Southland woman charged in bogus insurance policy commission scam
News: 2016 Press Release
LOS ANGELES, Calif. — Teresa Marie Davis, 52, of Pomona CA, was arrested at her home by Department of Insurance investigators and booked on multiple counts of identity theft and grand theft in an alleged bogus life insurance scam that netted her over $67,000 in illegal commissions. Her preliminary hearing is scheduled for February 26 in Pomona Superior Court.
Davis, a former licensed agent, allegedly used the names of several businesses to establish employee payroll acknowledgements, which signified to the insurer that the businesses' employees were eligible to apply for insurance policies. Davis also used fictitious business names and address to establish some of the payroll acknowledgements.
Using the fictitious information, Davis allegedly submitted 393 insurance applications between March-October 2011, using fictitious consumer information and addresses. Davis did also use four peoples' identities to apply for insurance policies and added fictitious addresses in order to conceal her crime. Some of the people whose identities Davis used to submit fraudulent applications told investigators they did receive letters from the insurer about a policy, but disregarded it because they thought it was an error.
"This case is a warning to businesses and individuals on spotting potential identity theft," said Insurance Commissioner Dave Jones. "Do not simply disregard mail you receive because you believe it's an error; it could be the warning that something more serious is going on."
The insurer became suspicious when premium notices were returned for invalid addresses and the applicants' information turned out to also be fictitious.
Davis received a total of $67,534.23 in commissions by submitting fraudulent insurance applications.
- Booking photo for Davis. https://www.flickr.com/photos/ca_dept_insurance/24997772511/in/album-72157664207997310/
- As of 2/17/16, Davis is unable to make the bail of $245,000 and remains in custody at the Century Regional Detention Facility in Lynwood, CA.
- The Los Angeles County District Attorney's Office filed four (4) counts of Identity Theft, in violation of Penal Code Section 530.5(a); and one (1) count of Grand Theft, in violation of Penal Code Section 487(a).
- Teresa Davis will be arraigned in Los Angeles County Superior Court.
- This case was investigated by the California Department of Insurance Enforcement Branch Investigation Division and prosecuted by the Los Angeles County District Attorney's Office.
- License status: License expired February 29, 2012.
- The Department of Insurance Investigation Division investigates insurance crimes committed by insurance producers (agents and brokers).
- Investigators with the Criminal Operation Point of Sale Unit (COPS) are members of the department's law enforcement branch.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 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 $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.