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Insurance Commissioner Dave Jones Announces Arrest of Sacramento Woman for Disability Insurance Fraud

News: 2012 Press Release

For Release: October 31, 2012
Media Calls Only: 916-492-3566
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Insurance Commissioner Dave Jones Announces Arrest of Sacramento Woman for Disability Insurance Fraud
Woman Allegedly Injured in Automobile Crash; Participates in Zumba Dance Class and Becomes Paid Zumba Dance Instructor

Insurance Commissioner Dave Jones today announced that Adure Renee Velazquez, 35, of Sacramento, has been arrested by detectives from the California Department of Insurance (CDI) Fraud Division. Velazquez has been charged with three felony counts of disability insurance fraud. If convicted on all counts, she could face up to three years in state prison and/or a fine of $20,000.

According to CDI detectives, Velazquez was arrested yesterday at her residence in Sacramento County for the charges above which included providing false statements in support of a disability insurance claim and knowingly failing to disclose a material fact to obtain a benefit from a disability insurance claim. She was booked into the Sacramento County Jail. Bail has been set at $50,000.

The investigation revealed that on September 21, 2011 Velazquez's employer contacted CDI to report an employee they suspected of committing insurance fraud. The investigation also revealed that in early January 2011, Velazquez began participating in Zumba dance exercises through a fitness center located in West Sacramento. On January 21, 2011, Velazquez was involved as a passenger in a vehicle accident. In April 2011, Velazquez notified her employer she had suffered injuries because of the accident and she was receiving medical treatment for her alleged injuries. Detectives learned that in May 2011, Velazquez became a certified Zumba dance instructor.

On June 16, 2011, Velazquez filed a Non-Industrial Disability Insurance (NDI) claim through her employer and began receiving benefits on June 23, 2011. On June 28, 2011, Velazquez allegedly began receiving payments from the fitness center owner for her services as a Zumba dance instructor. Velazquez continued receiving treatment for her injuries while allegedly teaching and participating in Zumba dance exercises.

In addition, Velazquez continued to receive NDI benefits until September 8, 2011. Velazquez continued to receive payments for her services as a Zumba dance instructor through November 2011. The estimated loss to the State of California is $29,788.

This case was investigated by the CDI Sacramento Regional Office and is being prosecuted by the Sacramento County District Attorney's Insurance Fraud Unit.

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 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.