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CA Department of Insurance

Sentencing set for former Murrieta broker

News: 2014 Press Release

For Release: May 7, 2014
Media Calls Only: 916-492-3566
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Sentencing set for former Murrieta broker

SAN DIEGO, Calif. - Insurance broker James William Riley, 50, of Murrieta is facing 16 months in prison for multiple felony counts involving theft and embezzlement of over $172,000 from Casino Pauma.

"When Riley chose to follow his greed and rip off his clients, he violated his fiduciary responsibilities and their trust," said Commissioner Jones. "This case is another example of my commitment and continued support for joint investigations of workers' compensation fraud that cost California consumers billions of dollars every year."

Riley's arrest and sentencing are the result of a yearlong multi-agency investigation that included the San Diego County District Attorney's Office, the California Department of Justice, Bureau of Gambling Control and the California Department of Insurance, with cooperation from the Pauma-Yuima Band of Lusieños Indians and Casino Pauma.

"Justice is obtained for a greater number of victims when law enforcement agencies work effectively together," said District Attorney Bonnie Dumanis. "In this case, our office worked collaboratively with our law enforcement partners, the Pauma-Yuima Band of Lusieños Indians and Casino Pauma over the last year to bring this embezzler to justice and hold him accountable for his crimes."

According to investigators, Riley targeted Casino Pauma's worker's compensation insurance policy. Since insurance premiums are calculated at both the beginning and end of every year, it is common for liability, and thus premiums, to fluctuate as the number of employees grows or shrinks. A return of excess premiums is possible at the end of a policy cycle, and in 2007, the Casino Pauma was due a premium refund of over $172,000. Riley failed to return the premium refund, which was his duty as a licensed agent. In 2010, the loss to the casino was discovered and prompted the criminal investigation.

"This investigation highlights the collaborative work between Department of Justice Special Agents and Investigative Auditors, as well as, the mutually respectful Tribal, State and County Government relationships in the pursuit of justice," said California Department of Justice, Bureau of Gambling Control, Bureau Chief Wayne J. Quint, Jr.


Media Notes:

  • May 7, 2014, Riley sentenced to 16 months in prison and restitution of over $172.000.00.
  • April 10, 2014, Riley pled guilty to a felony count of grand theft.
  • January 31, 2013, Riley was charged in San Diego County with multiple felonies counts involving theft and embezzlement.
  • September 30, 2013, Riley's California insurance license was revoked after a conviction of bribery charges in Riverside County.
  • February 18, 2010, Riley's license is suspended.
  • James Riley was the principal owner of Riley Garrison and Associates.

The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $289 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 web site at Non-media inquiries should be directed to the Consumer Hotline at 800.927.HELP or 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

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