Former Palmdale insurance agent sentenced in theft and embezzlement scheme
News: 2022 Press Release
LOS ANGELES – Former insurance agent Blanca Lidia Guzman, 40, of Palmdale, was sentenced in Los Angeles County Superior Court yesterday on one felony count of grand theft after pleading no contest for defrauding consumers. Guzman stole over $16,000 in premiums from the insurance company she worked for and her clients while leaving many of those clients without insurance coverage. She was sentenced to pay restitution and to complete 10 days of community labor.
An investigation by the California Department of Insurance began after receiving complaints from Guzman’s employer.
The investigation revealed that Guzman entered false information into the company’s database to avoid submitting client funds. She submitted fabricated proof of insurance documents to escrow companies in order to close the sale or refinance of the victims’ homes and then cashed the checks from the escrow companies that were issued for insurance. Guzman also forged her clients’ e-signatures on insurance policy applications to place other policies at a much later date with another company without her clients’ knowledge. Her actions left several clients without insurance coverage and resulted in a theft of at least $16,128.
The Department of Insurance revoked Guzman’s license on February 1, 2021. The Los Angeles County District Attorney’s Office prosecuted this case.
# # #
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
