Formerly licensed insurance agent arraigned in $1.8 million investment scam for non-existent marijuana business
News: 2025 Press Release
LOS ANGELES - Formerly licensed insurance agent Matthew Evans, 36, of Palmdale, was arraigned today and pleaded not guilty to multiple felony charges involving fraud, after a Department of Insurance investigation revealed he allegedly deceived several clients and acquaintances into investing over $1.8 million in a non-existent marijuana business named "House of Green." Evans's insurance agent license was revoked earlier this year after he pleaded no contest in a separate case.
"This formerly licensed agent allegedly exploited the confidence of his clients by deceiving them into investing in a fictitious business and stole their hard-earned money to fund his own lavish lifestyle,” said Insurance Commissioner Ricardo Lara. “These types of egregious actions not only undermine the integrity of the insurance profession but also inflict profound financial and emotional harm on the victims. My department is unwavering in its commitment to combating financial fraud and protecting consumers from those who exploit their positions of trust for personal gain.”
The Department initiated the investigation after receiving a complaint from two victims who claimed they had invested a total of $1.3 million in House of Green, without seeing any return on their investment. According to the victims, Evans refused to update them on the status of their investment and did not provide any records for the business. Furthermore, there were no indications that House of Green was operational.
The investigation also identified 12 additional victims who experienced similar issues with Evans. Investigators discovered that Evans stole a total of $1,862,479 from 15 separate victims, all of whom believed they were investing in House of Green. Instead of using the funds for business purposes as promised, Evans embezzled the money to finance his lavish lifestyle and promote his public image, as well as his business, Evans Family Consulting Inc. Examples of his lavish lifestyle include million-dollar Palmdale homes and brand new Cadillac Escalades.
In April 2024, in an unrelated case also investigated by the Department, Evans and his wife both pleaded no contest to seven misdemeanor counts. In that case, they stole the identities of licensed insurance agents and used them on fraudulent insurance applications to collect undeserved commissions. Both had their licenses revoked as a result of the plea. They both received probation and were ordered to pay restitution.
A preliminary hearing is scheduled for September 15. This case is being prosecuted by the White Collar Crime Division of the Los Angeles County District Attorney’s Office.
The Department reminds consumers to verify they are working with a licensed agent and/or licensed business at http://www.insurance.ca.gov/0200-industry/0008-check-license-status/. If a consumer suspects they have been a victim, they are encouraged to file a complaint with the Department.
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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.
