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CA Department of Insurance

19 charged with embezzling more than $250k from insurer

News: 2016 Press Release

For Release: April 8, 2016
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
19 charged with embezzling more than $250k from insurer
Claims adjuster allegedly crafted elaborate scheme using family and friends

LOS ANGELES, Calif. — Elizabeth Louise Brown, 48, of Canyon Country, a former claims adjuster with Explorer Insurance, was arrested yesterday and charged with multiple felonies, including insurance fraud and conspiracy for allegedly embezzling more than $276,000 from her employer. Another eight were also arrested and charged with fraud. Additional arrests are expected as the investigation continues.

According to Department of Insurance detectives, between January 2013 and September 2015, while employed by Explorer Insurance as a claims adjuster, Brown allegedly embezzled from the company by adding friends and family members to claims, which resulted in the insurer issuing fraudulent payments to Brown's co-conspirators.

"Brown's alleged crimes are unconscionable," said Insurance Commissioner Dave Jones. "Every one of us pays for fraud through higher premiums when insurers pass their losses along to consumers. Our work with the district attorney and Explorer Insurance helped solve this crime."

Evidence of Brown's alleged crimes were discovered by Explorer Insurance when they identified fraudulent checks issued in 87 claims assigned to her. Explorer terminated Brown's employment and, as required by law, reported the suspected crimes to the department, which launched a criminal investigation. The investigation into how Brown profited from the scheme is ongoing. This case is being prosecuted by the Los Angeles County District Attorney's Office Auto Insurance Fraud Division.

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Media Notes:



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.

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