Broker overbills insurance clients, collects more than $800,000
Madison Voss January 3, 2014 9:08 AM
California Department of Insurance assists FBI in fraud investigation
THOUSAND OAKS, Calif.-Insurance broker Jerry Bruce Goldman, 59, has been sentenced to 27 months in federal prison and ordered to pay restitution totaling $841,000 after pleading guilty to federal mail fraud charges.
Through his Newbury Park insurance agency, Jerry B. Goldman Insurance Services, Goldman sold various types of insurance products to his clients, some of whom were over-billed for their insurance premiums by as much as 600 percent. His four victims included actor Tom Hanks and Andy Summers, former drummer of the Police.
According to the indictment, Goldman negotiated premiums for insurance coverage on behalf of his clients, and was paid commissions by the insurance provider on each policy. Goldman then created and issued to his victims fraudulent invoices that inflated the premiums due by as much as 600 percent.He then sent the actual premiums to the insurers and kept the excess funds for himself. From 1998 through August 2011, Goldman received overpayments of more than $800,000.
Goldman has been licensed to sell insurance since 1978. As a result of Goldman's actions, the California Department of Insurance moved swiftly by suspending his license in January of 2013, and then revoking his license in August of 2013.