Laguna Beach insurance agent arraigned for allegedly stealing from small business owners
News: 2023 Press Release
ORANGE, Calif. — Erin Lee McCarroll, 49, of Laguna Beach, was arraigned today on 27 felony counts including grand theft and forgery after a California Department of Insurance investigation found she allegedly stole more than $62,000 in insurance premiums from at least 10 California business owners.
The Department launched an investigation after receiving multiple consumer complaints that McCarroll, who was doing business as Erin McCarroll Insurance Services, allegedly accepted premium payments and pocketed the funds to use for her own personal expenses.
The investigation found that between June 2017 and November 2019, McCarroll allegedly failed to forward premium payments totaling over $62,000 from at least 10 victims who were unaware that McCarroll had stolen their premium payments and did not place the insurance coverage they believed they had.
McCarroll’s victims were contractors and other small business owners who are required by law to have workers’ compensation coverage for their employees in the event of work-related injuries. McCarroll’s victims also requested and paid McCarroll for general liability policies, which she did not place. The lack of these policies exposed McCarrolls’ victims to possible uncovered claims and the potential for thousands of dollars in losses.
McCarroll was able to deceive her victims by creating and issuing fraudulent certificates of insurance, which were used to demonstrate proof of proper insurance coverage while bidding contracts. The bogus certificates led her victims to believe they had successfully acquired the insurance policies they purchased from McCarroll.
This case is being prosecuted by the Orange 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.
