Former Roseville insurance agent convicted of stealing school district employees' identities
News: 2015 Press Release
ROSEVILLE, Calif. - Magaly Morales, 51, was sentenced last week to three years and four months in state prison after pleading guilty to forgery, identity theft and aggravated white collar crime enhancement for losses over $100,000.
Morales was arrested in December 2014 on multiple felony counts for submitting 299 fraudulent annuity applications and collecting more than $230,000 in advanced commissions.
"Licensed agents and brokers have a fiduciary responsibility to their clients and the companies they represent," said Insurance Commissioner Dave Jones. "When someone violates that trust, as Morales did by stealing peoples' identities, it erodes consumer confidence."
As a licensed insurance agent for Great American Life Insurance Company, Morales gained access to policyholders' data from 2009 to 2011. Morales used her authority as an agent to steal information from school district employees in 13 counties across the state, from Shasta to San Luis Obispo. The largest number of victims was in San Joaquin County. Using the stolen identities of innocent victims, Morales submitted annuity applications to Life Insurance Company of the Southwest and received advanced commissions on annuity policies for people who had no idea they owned such policies.
Due to Morales' illegal activity, identity theft victims did not have to pay any premiums on the fraudulent policies.
This case was a joint effort between the California Department of Insurance and the San Joaquin County District Attorney's Office.
- Known alias: Magaly Egas
- As of January 15, 2015 Magaly Morales is no longer licensed to transact insurance in California.
- Morales was sentenced on Tuesday, March 24, 2015.
- Check a California Licensed agent's status and see if they have any enforcement actions.
- The victims worked at various school districts spread throughout the following 13 counties:
- Contra Costa
- El Dorado
- San Joaquin
- San Luis Obispo
- Santa Clara
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 $394 million in claims and premiums. Please visit the Department of Insurance web site at www.insurance.ca.gov. 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.