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CA Department of Insurance
CA Department of Insurance
CA Department of Insurance

Yuba City resident convicted and sentenced after committing auto fraud

News: 2019 Press Release

For Release: September 24, 2019
Media Calls Only: 916-492-3566
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Yuba City resident convicted and sentenced after committing auto fraud

SAN MATEO, Calif. — Derek James Rudd, 48, of Yuba City, was convicted and sentenced last week to 10 days in county jail, two years court probation and ordered to pay a restitution fine of $245 after pleading no contest to one misdemeanor count of insurance fraud.

On September 23, 2014, Rudd lost control of his 2014 Audi Q5 while exiting Highway 101 and collided with a light pole in the parking lot of a hotel in South San Francisco. His vehicle was not driveable and towed from the scene. An investigation found that the day after this collision occurred, September 24, 2014, Rudd obtained an insurance policy because his previous policy with a different insurer had become ineffective on September 9, 2014, due to nonpayment.

On September 30, 2014, Rudd reported to his insurer that he was involved in collision on September 24, 2014, alleging he attempted to avoid another vehicle, swerved then lost control of the vehicle, and collided with a guard rail. According to Rudd’s version, the collision occurred five hours after the inception of his insurance policy, which the investigation found to be untrue.

As a result of Rudd’s misrepresentation the claim was denied by his insurer before any losses occurred. This case was prosecuted by the San Mateo County District Attorney’s Office.

Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.

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