Menu
Contact Us Search
CA Department of Insurance

Insurance Commissioner Dave Jones announces sentencing of Orange Agent for Grand Theft

Dave Althausen
July 24, 2012 2:57 PM

On March 16, 2012, Gregory Jay Magedman, 67, of Orange, was sentenced to 365 days in Orange County Jail after pleading guilty to one felony count of Grand Theft. Magedman was also placed on supervised probation for five years and ordered to pay restitution in an amount to be determined.

According to investigators, Magedman was the owner of EDN Insurance Services, Inc. of Fullerton. In November of 2006, Magedman, acting as an insurance agent for DSD Trucking Inc., accepted $183,097.03 for the purchase of a commercial automobile insurance policy. Instead of purchasing the policy for his client, Magedman converted the funds for his own personal use, causing the policy to be cancelled. Magedman failed to alert DSD Trucking that their policy had been cancelled and allowed the company to operate without the knowledge of their potential loss exposure. In October 2007, DSD Trucking Inc. learned their policy was not in effect and had to pay $50,000 to have the policy reinstated retroactively. Additional victims suffered losses in excess of $9,000.

The California Department of Insurance (CDI) suspended Magedman's insurance license which is pending a formal hearing. As a condition of sentencing Magedman is not to work as an Insurance Agent or Broker, unless licensed and bonded. He is not to work in any insurance office or agency unless approved by the probation department.

This case was investigated by the CDI - Orange County Investigation Division and prosecuted by the Orange County District Attorney's Office.

 

 

Font Size: Translate: Español