Former Texas Insurance Broker Charged in Alleged Fraud Scheme

April 17, 2025 | JacobiJournal.com — A former Texas insurance broker is facing felony theft charges after allegedly collecting payments from clients for policies he never purchased.

Edgar Peralta, of Peralta Insurance Brokerage LLC, turned himself in to Friendswood Police on April 10, 2025. The former Texas insurance broker is charged with theft, a state jail felony, filed by the Galveston County District Attorney’s Office.

Fraud Uncovered After Traffic Stop

Friendswood Police began investigating Peralta on March 3, 2025, after receiving a fraud complaint from a longtime client. The client had used Peralta for several years to secure homeowner, auto, and flood insurance policies.

In May 2024, Peralta reportedly advised the client to prepay for policies covering the upcoming year, promising significant cost savings. However, after a January 2025 traffic stop, the client discovered their auto insurance was invalid. Upon contacting the insurer, they learned the policy had been canceled for non-payment.

Further inquiries revealed the same issue with both the homeowners and flood policies. The client provided wire transfer records showing they had paid Peralta directly. However, investigators believe he never forwarded the funds to the insurance companies.

License Revoked Months Earlier

The situation escalated when the client discovered that Peralta’s insurance license was revoked in June 2024—months before he accepted their latest payments. This revelation raised serious concerns about how the former Texas insurance broker continued operating despite being legally barred from conducting insurance transactions.

According to industry regulations, once a license is revoked, an agent is prohibited from soliciting, selling, or managing any insurance policies. However, investigators allege Peralta ignored these restrictions and continued to present himself as a legitimate broker. This not only violated state insurance laws but also placed clients at risk of being uninsured without their knowledge.

Authorities say this pattern of behavior underscores a larger issue in the insurance industry—how revoked agents can exploit personal relationships with clients to commit fraud. For victims, the trust built over years of service made it harder to suspect wrongdoing until financial harm had already occurred.

Ongoing Investigation

Friendswood PD has referred the case to the Texas Department of Insurance, which has launched its own investigation into the former Texas insurance broker and his alleged fraudulent activities. Authorities are reviewing financial records, client communications, and policy documentation to determine the full extent of potential violations.

Additional charges may follow based on their findings, especially if more victims step forward with similar claims of premium payments that never resulted in active coverage. The former Texas insurance broker remains under investigation, and authorities urge any other potential victims to come forward immediately to aid in the ongoing case.

If you suspect fraudulent activity by an insurance agent or broker, report it immediately through the Texas Department of Insurance’s official fraud reporting portal to protect yourself and other consumers.

Source: Friendswood Police Department.

New Update: Former Texas Insurance Broker Fraud Case Highlights Alleged Premium Theft and Uninsured Policyholders

The former Texas insurance broker fraud case involving Edgar Peralta continues to illustrate the financial risks consumers face when insurance premiums are allegedly collected without corresponding coverage. In April 2025, Friendswood police reported that Peralta, associated with Peralta Insurance Brokerage LLC, surrendered to authorities after being charged with theft, a state jail felony, following allegations that he accepted insurance payments without forwarding the funds to insurers.

The investigation began in March 2025 after a longtime customer reported discovering that multiple insurance policies were no longer active. The customer had previously relied on Peralta to arrange automobile, homeowners, and flood insurance coverage.

According to the original investigation, Peralta encouraged the customer to prepay insurance premiums in May 2024, representing that advance payments would produce financial savings.

However, the customer discovered a coverage problem following a January 2025 traffic stop, when authorities determined that the automobile insurance policy was invalid.

Further inquiries reportedly revealed that the automobile policy had been canceled for nonpayment. The customer subsequently discovered similar problems involving homeowners and flood insurance coverage.

Investigators reviewed wire transfer documentation indicating that the customer had sent money directly to Peralta. Authorities alleged that the former Texas insurance broker failed to transmit those payments to the insurance companies.

The investigation also raised licensing concerns because Peralta’s insurance license had reportedly been revoked in June 2024.

The reported revocation was particularly significant because it occurred during the period in which Peralta allegedly continued conducting insurance-related transactions.

Under Texas insurance regulations, individuals generally must maintain appropriate licensing authorization to sell, solicit, or negotiate insurance products.

A revoked license can therefore create additional compliance concerns when a former agent continues presenting insurance services to consumers.

The former Texas insurance broker fraud allegations demonstrate how policyholders may remain unaware of missing coverage until an accident, property loss, or routine insurance verification reveals a problem.

Consumers who believe they have paid their premiums may assume that coverage remains active, even when the insurer has not received the required payments.

This situation can create substantial financial exposure, particularly when an uninsured property loss or automobile accident occurs before the policyholder discovers the discrepancy.

The alleged conduct also highlights the importance of distinguishing premium payments made to an intermediary from payments actually received and processed by an insurance carrier.

A payment receipt or wire transfer confirmation does not independently establish that an insurance policy has been issued, renewed, or maintained.

Insurance consumers can reduce these risks by confirming policy numbers, coverage periods, and payment status directly with their insurance companies.

The Texas Department of Insurance provides resources for verifying insurance agent licensing information and reporting suspected insurance fraud.

The department’s regulatory responsibilities include investigating potential violations involving insurance licensing, deceptive practices, and other conduct affecting consumers.

As of October 2026, the original April 2025 theft charge remains the documented criminal development addressed in this update. A subsequent conviction, dismissal, plea agreement, or sentencing outcome has not been independently verified here.

Importantly, the allegations against Peralta should not be treated as findings of criminal guilt. The prosecution must establish the applicable elements of the charged offense through the legal process.

The former Texas insurance broker case also demonstrates why insurance regulators and law enforcement agencies encourage consumers to report suspicious transactions promptly.

For policyholders, maintaining direct communication with insurers and retaining documentation of premium payments can help identify discrepancies before financial losses occur.

For insurance professionals, the allegations reinforce the importance of licensing compliance, transparent premium handling, and accurate communication concerning policy status.

The continuing significance of the former Texas insurance broker fraud investigation lies in showing how alleged premium diversion and unauthorized insurance activity can expose consumers to unexpected coverage gaps while prompting criminal and regulatory scrutiny.

For additional information, review the Texas Department of Insurance’s official fraud reporting resources for guidance on suspected insurance fraud, agent misconduct, and consumer protection.