California insurance agent arrested in Chicago faces 96 felony counts
News: 2015 Press Release
Former licensed agent, Jacob Richard Bonzer pleaded guilty to 96 felony counts and agreed to pay over $900,000 in restitution. Bonzer was sentenced to serve seven years in state prison. Below is the arrest news release from August 15, 2014.
ORANGE, Calif. -Jacob Richard Bonzer, 27, formerly of Lake Forest, California was arrested Wednesday (Aug. 13, 2014) in Chicago by the Chicago Police Department and a U.S. Marshals Task Force on 96 felony counts including grand theft, forgery and denial of benefits. If convicted, Bonzer faces a maximum sentence of more than 87 years in state prison.
"Bonzer allegedly created more than a thousand insurance policies based on fraudulent information, which allowed him to collect $285,000 in unearned commission payments," said Insurance Commissioner Dave Jones. "Agents who violate their fiduciary responsibility and rip off insurers or consumers for their own financial gain will be brought to justice and prosecuted to the full extent of the law."
A joint investigation between the California Department of Insurance, the Orange County District Attorney's Office and the Brea Police Department revealed Bonzer perpetrated several schemes for his personal financial gain.
Homeowner insurance policy scheme
The department received a complaint alleging Bonzer submitted 128 fraudulent homeowners insurance applications containing bogus information using nonexistent policyholders for real properties, causing valid policies to be issued for phantom homeowners in escrow between April and July 2010. Bonzer received $46,000 in advanced commissions from the insurance company that expected to collect premiums when the properties closed escrow. Since the applicants were bogus, the insurer never received premium payments and Bonzer was eventually fired.
Investigators allege Bonzer continued his scam through another agent after he was fired. It was determined Bonzer created a fictitious mortgage company that referred all residential short-sale business to Bonzer for homeowners insurance. Bonzer used the same scheme leading the insurer to believe they would receive premium payments at the close of escrow. Numerous policies were resubmitted multiple times with an explanation that escrow closing had been delayed. In some cases Bonzer received duplicate commission payments for the same property. Between August 2010 and November 2011, approximately 790 fraudulent homeowners insurance applications, containing bogus information, were submitted by Bonzer under another agent. As a result Bonzer received commission payments of $239,000.
Workers' compensation scheme
Investigators also discovered that in 2012 Bonzer created a fictitious insurance company called GW Mutual Risk Retention Group, LLC, which was registered in Florida. GW Mutual is not licensed to write insurance in California though Bonzer sold workers' compensation and commercial insurance policies through his agency, Bonzer Insurance Brokerage, located in Orange County. Bonzer collected approximately $280,000 in premium from 58 California businesses that believed they were purchasing valid coverage. When questioned by a client about GW's ability to offer insurance in California, Bonzer provided an altered CDI report of examination as proof. Department investigators also discovered premium payments entrusted to Bonzer were used on personal living expenses including the rental of luxury high-rise apartments, travel, wine clubs and fine dining.
"The fact Bonzer's criminal activity left legitimate businesses without valid workers' compensation insurance put business owners, their employees and the state at great financial risk. His multiple schemes to rip off insurers and businesses are egregious," said Commissioner Jones.
The search for more victims
Bonzer orchestrated these elaborate scams by using multiple post office boxes, virtual assistants, business entities, office spaces, email accounts, Website domains and bank accounts. The department has reason to believe that there are additional victims. Anyone who did business with Jacob Bonzer or believe they may be a victim, are encouraged to contact Department of Insurance supervising investigator Vera Grunke at (714) 712-7600.
This case is being prosecuted by the Orange County District Attorney. Bonzer is currently being held at the Cook County Detention Center pending extradition to Orange County. Bonzer's bail is set at $600,000.
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- Bonzer's booking photo is available on CDI's Flickr page. www.flickr.com/ca_dept_insurance/
- Felony charges against Bonzer includes multiple counts of PC 487 (a) - grand theft, PC 470 (d) - forgery, PC 550 (b)(3) - denial of benefits, IC 700 (a) - transact without certificate of authority and enhancements PC 186.11(a)(1) -aggravated white collar crime over $100K, 186.11 (a)(1)(2) over $500K & PC 12022.6 (a)(2) - theft exceeding $150K.
- If convicted, Bonzer faces a maximum sentence of 87 years, eight months in State Prison.
- This case will be prosecuted by the Orange County District Attorney's office.
- An immediate order of suspension of Bonzer's California insurance license has been issued.
- Google+ https://plus.google.com/+2chefs1homeblog/posts
- CDI license details for Jacob Bonzer (Lic.#0G70642) http://bit.ly/1oxTpeB
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 www.insurance.ca.gov. 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.