Former Southland insurance agent sentenced in senior fraud scam
News: 2018 Press Release
LOS ANGELES, Calif. — David Todd Neuman, 59, a former life insurance agent, of Thousand Oaks, pleaded guilty to one felony count of embezzlement and one count of false impersonation after using seniors’ personal documents to apply for veterans benefits and stealing over $187,000 in benefit payments. Neuman was sentenced to 120 days in county jail and 36 months of formal probation.
"I have zero tolerance for agents and brokers who scam insurers and victimize consumers, especially seniors," said Insurance Commissioner Dave Jones. "Neuman violated the tenets of his license
when he used his position of trust to take advantage of vulnerable seniors and line his pockets with ill-gotten gains."
An investigation by the Riverside County Sheriff Department revealed that Neuman falsely presented himself as a financial planner associated with the Department of Veterans Affairs and provided information to senior widows on survivor benefits. He obtained documents from the victims including their husbands’ military records, death certificates, and their marriage certificates. Neuman then used the documents to apply for death/survivor benefits through the Department of Veterans Affairs. Neuman diverted over $187,000 in payments to his own bank account and the victims did not receive any benefits.
Neuman’s license was immediately suspended by the California Department of Insurance (CDI). This case is being prosecuted by the Riverside County District Attorney’s Office and was filed under the Life and Annuity Consumer Protection Program (LACPP), which was established through Assembly Bill 2316 (Chan). The LACPP established this fund to be used exclusively for protecting consumers of life insurance and annuity products in the State of California by both the CDI and local district attorneys.
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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.