Former Clovis agent arraigned for allegedly stealing consumers’ insurance payments
News: 2021 Press Release
FRESNO, Calif. — Formerly licensed insurance agent Danny Raymond Armenta, 48, of Clovis, was arraigned today in Fresno Superior Court on multiple felony counts of embezzlement, grand theft and diversion of fiduciary funds after allegedly using his position as an insurance agent to steal consumers’ premium payments and use them for personal expenses.
After receiving a complaint from Armenta’s employer, the California Department of Insurance launched an investigation which revealed while working as an insurance agent, Armenta collected funds from consumers to pay insurance premiums. Investigators allege Armenta deposited the consumers’ payments into a fiduciary account, transferred the funds into a business operating account, and then eventually moved $17,797 into his personal banking account. He used the stolen funds to buy college sports tickets, pay bills, and cover other personal expenses.
When Armenta’s employer attempted to withdraw the consumers’ fiduciary funds to cover the consumers’ insurance premiums, they received notices of insufficient funds. Despite Armenta’s actions, the insurance company covered the consumers’ premium payments so they were never left uninsured.
Although Armenta’s license expired on September 30, 2020, the Department revoked his license on March 1, 2021, and prohibited him from further participation in the insurance industry. Armenta is scheduled to return to court on June 23, 2021. The case is being prosecuted by the Fresno 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 www.insurance.ca.gov 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.