Former licensee faces felony charge for stealing from elderly woman
News: 2016 Press Release
"Vulnerable consumers, including seniors, depend on the financial advice of agents and brokers to offer guidance when investing in insurance products and dealing with annuities," said Insurance Commissioner Dave Jones. "When we find that a licensee has committed fraud, or committed theft, we will take every action available to investigate the matter fully, revoke their license and pursue criminal charges when appropriate."
The department launched an investigation following notice from the Financial Industry Regulatory Authority (FINRA) that Caballero was permanently barred from any association with any member of the FINRA in any capacity. In his capacity as an investment banker, Caballero befriended an 87-year-old woman whose husband had recently passed away. Caballero convinced the woman, who suffered from dementia, to cash in her annuity totaling $319,006 and place the funds under her personal account Caballero then transferred the funds to a different financial institution into a joint account with his name and used the money to pay off personal expenses including his car loan, real estate and retail vendor purchases.
The bank Caballero worked for at the time discovered the financial abuse and immediately terminated his employment. The victim lost approximately $298,000, but was made whole when the financial institution Caballero worked for offered financial restitution.
Caballero is due back at the Los Angeles Criminal Court on January 3, 2017 for a preliminary hearing. His insurance license was revoked by the California Department of Insurance effective February 22, 2014.
Caballero's preliminary hearing on January 3, 2017 will be in the Los Angeles Criminal Courts Building, Department 30, 210 W. Temple Street, Los Angeles, CA
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.