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CA Department of Insurance
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CA Department of Insurance

Oceanside man convicted of defrauding ill brother out of $120,000

News: 2022 Press Release

For Release: February 11, 2022
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov

Oceanside man convicted of defrauding ill brother out of $120,000

SAN DIEGO, Calif. — Randall Smith, 64, of Oceanside, was convicted on one felony count of forgery after misusing his power of attorney to steal over $120,000 from his brother’s annuity policy. Smith was sentenced to two years probation and ordered to pay $120,000 restitution to the beneficiaries of his now deceased brother and victim, Garrett Smith.

In July 2012, Garrett Smith, brother of Randall Smith, purchased a $1.2 million annuity policy. Garrett Smith had been diagnosed with early onset dementia earlier that year. In February 2013, Randall Smith obtained power of attorney for his brother because of Garrett Smith’s diagnosis.

An investigation by the Department of Insurance found that between April 2014 and June 2015 Randall Smith misappropriated over $120,000 from his brother’s annuity by making six separate withdrawals from the policy without his brother’s knowledge. Randall Smith withdrew the funds by impersonating his brother during telephone calls with the insurance company and forging the policy beneficiary’s signature on documents.

As a result of Randall Smith’s fraudulent actions, his brother incurred an additional loss of approximately $92,000 due to penalties and early withdrawal fees from the insurance company. Garrett Smith died on December 31, 2015, at the age of 56.

This case was prosecuted by the San Diego County District Attorney’s Office.

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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.

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