Ex-Westminster Police Officer Charged with Insurance Fraud After Partying on Disability Leave
Former Westminster police officer charged with workers’ compensation fraud after being spotted partying and traveling during medical leave. Tracey Leong reports for NBC4 News at 11 p.m., May 20, 2025. Credit: NBC Los Angeles — https://www.nbclosangeles.com/ May 21, 2025 | JacobiJournal.com – A former Westminster police officer faces felony charges for allegedly committing insurance fraud and workers’ compensation fraud during her disability leave, the Orange County District Attorney’s Office announced. Nicole Brown, 39, from Riverside, faces nine felony counts for making false statements to receive compensation. She also faces six counts of fraudulent insurance claims. Prosecutors added a sentencing enhancement for aggravated white-collar crime involving over $100,000. Her stepfather, attorney Peter Gregory Schuman, 57, from Buena Park, also faces felony charges for filing fraudulent insurance claims and conspiring to commit illegal acts. Injury and Disability Insurance Fraud Allegations Brown injured her forehead while arresting a suspect in March 2022. An emergency room doctor treated her and cleared her to return to work. However, she later claimed a severe concussion and went on temporary disability leave, which is now at the center of the insurance fraud investigation initiated by the Orange County District Attorney’s Office. Evidence of Contradictory Activities During this time, Brown reportedly attended the Stagecoach Music Festival in April 2023 and was seen traveling and partying. Witnesses reported her dancing and drinking, contradicting her claims of severe symptoms. Investigators also found that Brown took part in two 5K races, snowboarded, skied, attended several soccer conferences, went to baseball games, played golf, and visited Disneyland. She also enrolled in online courses, despite complaining about screen sensitivity. Defense Statement Brown’s lawyer, Brian Gurwitz, said, “Ms. Brown suffered a debilitating head injury while on duty. She plans to vigorously challenge these allegations.” Legal Consequences and Next Steps The charges highlight increased scrutiny of workers’ compensation claims when claimants’ activities conflict with their reported injuries. Brown and Schuman face serious legal consequences if convicted. Stay updated with local crime and legal news from Orange County. FAQs: About Insurance Fraud and Disability Leave Abuse What qualifies as insurance fraud during disability leave? Insurance fraud occurs when an individual knowingly provides false or misleading information to receive disability benefits. In law enforcement or public service, this often includes exaggerating injuries or continuing to claim benefits after recovery. How do investigators detect insurance fraud in disability leave cases? Insurance fraud investigators often rely on surveillance footage, social media activity, medical record reviews, and witness testimony to identify discrepancies between a claimant’s reported injuries and actual behavior. In disability fraud cases, evidence of physical activity—like traveling or partying—while on leave can trigger prosecution. What are the legal consequences of committing insurance fraud while on leave? Penalties for insurance fraud may include felony charges, restitution orders, termination of employment, and loss of future benefits. In California, convicted individuals may also face imprisonment, fines, and professional disqualification. Subscribe to JacobiJournal.com for trusted updates on law enforcement misconduct, insurance fraud cases, and public integrity prosecutions across the U.S. 🔎 Read More from JacobiJournal.com:
San Jose Security Company Owner Faces Sentence for $3.4M Insurance Fraud
May 21, 2025 | JacobiJournal.com — San Jose insurance fraud investigations have led to the sentencing of a local security company owner after a multi-year premium evasion scheme. The California Department of Insurance (CDI) announced on May 19, 2025, that investigators uncovered a large-scale insurance fraud operation involving Raul Chavez, 40, the owner of Tactical Operations Protective Services. Chavez was found guilty of felony premium fraud for underreporting more than $3.4 million in payroll, a tactic used to avoid paying workers’ compensation insurance premiums legally owed to the State Compensation Insurance Fund. Six-Year Scheme to Evade Insurance Payments From 2017 to 2023, Chavez systematically underreported his company’s payroll. He falsely claimed to the State Compensation Insurance Fund (State Fund) that he had no employees for five consecutive years. In the 2022–2023 policy year, he reported only $40,000 in payroll related to one injured employee, even though his business continued to operate in Santa Clara County. However, a detailed audit by the Department of Insurance revealed that Chavez had concealed $3,431,903 in payroll, resulting in $205,565 in unpaid workers’ compensation premiums. “Hiding true payroll amounts to reduce workers’ comp premiums puts workers at risk and gives offending companies an unfair advantage over law-abiding companies in that they can bid lower for jobs.”— Alan Barcelona, President, California Statewide Law Enforcement Association (CSLEA) Legal Consequences and Restitution Chavez accepted responsibility and pleaded guilty to felony insurance fraud. The court sentenced him to: These penalties reflect the severity of his actions and the financial damage caused to the insurance system. How San Jose Insurance Fraud Was Uncovered Through Payroll Audit The investigation began in September 2023, when State Fund filed a fraud referral. They reported that Chavez failed to disclose a workplace injury from June 2022. Although he transported the injured employee to an emergency room, he did not report the incident to State Fund, as required by law. The referral also alleged long-term payroll underreporting. CDI investigators confirmed that Chavez failed to report accurate payroll for multiple employees over six years, intentionally violating workers’ compensation requirements. Prosecutors Pursue Justice The Santa Clara County District Attorney’s Office prosecuted the case. Their efforts, in coordination with CDI’s audit and investigation, led to Chavez being held accountable for his fraudulent conduct. His actions not only violated insurance fraud laws but also jeopardized worker safety and disrupted fair business competition in the security services industry. The National Insurance Crime Bureau (NICB) also reported on the case, highlighting its significance in combating worker compensation insurance fraud statewide. FAQs: About San Jose Insurance Fraud What was the San Jose insurance fraud scheme involving Raul Chavez? The San Jose insurance fraud case involved Raul Chavez, who underreported more than $3.4 million in payroll between 2017 and 2023. This allowed him to avoid paying over $200,000 in workers’ compensation premiums, violating California insurance laws. How was the San Jose insurance fraud discovered? The fraud was discovered when the State Compensation Insurance Fund filed a referral in 2023 after Chavez failed to report a workplace injury. A follow-up audit by the California Department of Insurance confirmed years of underreported payroll. What are the consequences of committing San Jose insurance fraud? Raul Chavez pleaded guilty to felony insurance fraud. He was sentenced to 180 days in jail (via electronic monitoring), two years of probation, and ordered to pay over $225,000 in restitution—highlighting the severe legal and financial penalties for insurance fraud in California. Stay informed on major insurance fraud cases like the San Jose scheme. Subscribe to JacobiJournal.com for reliable coverage on employer fraud, workers’ compensation violations, and California enforcement updates. 🔎 Read More from JacobiJournal.com:
Summary Judgment Motion Renewal Denied for Carrier
May 15, 2025 | JacobiJournal.com – Carrier summary judgment denial took center stage on May 15, 2025, as reported by JacobiJournal.com. A California appellate court recently held that an insurance carrier could not revive a previously denied summary judgment motion by simply re-filing it without significant new evidence or legal developments. The decision underscores judicial expectations for diligence and finality in motion practice, particularly within workers’ compensation and insurance litigation. Court Affirms Carrier Summary Judgment Denial as Procedurally Improper In the case, the insurance carrier initially sought summary judgment, asserting there was no triable issue of material fact regarding its liability in a complex coverage dispute. The trial court denied that motion. Later, in an attempt to revive the same arguments, the carrier refiled without presenting any new legal developments or factual changes. This effort resulted in a carrier summary judgment denial reaffirmed by the court, which ruled that such renewed motions are procedurally improper absent materially different circumstances. The appellate court agreed, emphasizing that courts must discourage repetitive filings that waste judicial resources and delay proceedings. “A motion denied cannot be repackaged and re-presented in hopes of a different outcome,” the opinion stated. Legal Standards and Implications California law allows for renewed motions for summary judgment only if the party shows: In this instance, none of those criteria were met—there were no new facts, no changes in the law, and no material developments to justify reconsideration. The decision reinforces that parties cannot bypass procedural finality merely because they disagree with an earlier ruling. Courts expect litigants to present their strongest case upfront, and attempts to repackage denied motions without substantive justification undermine the efficiency and integrity of the judicial process. Why This Matters This ruling has broad implications for insurance defense teams and third-party administrators. It highlights the importance of making the strongest case possible in the initial motion, knowing that courts frown upon do-overs. Carriers must approach summary judgment strategically—gathering solid evidence and anticipating potential defenses—because a second chance is not guaranteed. The decision also signals to plaintiffs’ counsel that courts will protect the integrity of the litigation process by rejecting duplicative tactics from insurers. Read Clark Hill article for a more detailed explanation about how local trial practices must not override state statutory rights on summary judgment FAQs: Understanding Carrier Summary Judgment Denial in California Courts What is a “carrier summary judgment denial”? A carrier summary judgment denial occurs when a court rejects an insurer’s motion, finding material facts remain in dispute. If refiled without new evidence or legal developments, appellate courts often refuse renewed motions—emphasizing finality and judicial efficiency. When can an insurer refile a denied summary judgment motion? An insurer may only file a renewed motion if there’s new or different evidence, a change in controlling law, or material developments since the initial decision. Simply re-submitting the same motion is considered duplicative and improper under California appellate standards. Why did the appellate court reject the insurer’s renewed motion? The appellate court held that refiling the motion without new supporting facts or legal changes flouts procedural norms and harms judicial efficiency. Courts expect litigants to present their best case the first time, not attempt a “second bite at the apple.” Stay Ahead. Subscribe to JacobiJournal.com for expert coverage on insurance litigation, fraud developments, and carrier liability trends. 🔎 Read More from JacobiJournal.com:
Long Island School District Sues Insurers Over Abuse Allegations
May 8, 2025 | JacobiJournal.com — A School district lawsuit filed over denied abuse claims in Bay Shore Union Free School District initiated a federal legal battle against Hartford Insurance Group and CNA Insurance. Filed in the U.S. District Court for Eastern New York, the lawsuit accuses both insurers of failing to defend and indemnify the district against 45 sexual abuse claims linked to former elementary school teacher Thomas Bernagozzi. The case underscores growing legal pressure on insurance providers amid a rising number of abuse-related lawsuits under New York’s Child Victims Act. Dozens of Claims Spark Legal Action The district faces 45 lawsuits filed by former students under New York’s Child Victims Act (CVA). The lawsuits allege sexual abuse by Thomas Bernagozzi, a teacher who worked from the 1970s through 2000 at Gardiner Manor and Mary G. Clarkson Elementary Schools. Long Island School District Bernagozzi was criminally charged in 2023 for allegedly abusing two students. He has pleaded not guilty. Roughly half of the civil suits have been settled. However, 18 cases remain unresolved—cases for which the district claims Hartford and CNA should provide insurance coverage under general liability policies issued between 1973 and 1982. $35 Million Bond, $25M Verdict Slashed In 2023, Bay Shore approved a $35 million bond to help fund settlements for 12 claims not covered by insurance. Meanwhile, one lawsuit that went to trial resulted in a $25 million jury award to a victim. A judge later reduced that award to $4 million, pending a new trial on damages unless the victim accepts the lower amount. Other claims have been paid through the New York State Insurance Reciprocal (NYSIR). Insurers Accused of Delay Tactics According to the lawsuit filed on May 2 in U.S. District Court for Eastern New York, the district alleges that both insurers have adopted a “wait-and-see” strategy in the wake of the CVA’s passage. The complaint argues that the insurers: Bay Shore contends that this conduct violates the terms of their contracts, as well as New York state insurance and consumer protection laws. Seeking Accountability and Coverage In its suit, Bay Shore requests a declaratory judgment affirming the insurers’ obligation to cover the remaining lawsuits. The district also seeks damages for breach of contract, bad faith, and violations of state business and insurance laws. Officials argue that the insurers are trying to evade financial responsibility despite issuing policies precisely to cover serious liabilities like those now unfolding. Source FAQs: Long Island School District Lawsuit Explained What triggered the school district lawsuit? The Long Island school district lawsuit stems from insurers allegedly refusing to cover abuse-related claims under decades-old policies. Bay Shore UFSD argues that Hartford and CNA breached contract terms and violated state laws. Learn more from the NY State Courts. How many lawsuits is the Long Island school district facing? Bay Shore Union Free School District is facing 45 lawsuits under the NY Child Victims Act. The Long Island school district lawsuit seeks insurance coverage for 18 unresolved cases not covered by the New York State Insurance Reciprocal. What does the Long Island school district lawsuit demand? The Long Island school district lawsuit seeks a declaratory judgment, damages for breach of contract and bad faith, and an order compelling insurers to provide coverage for pending abuse lawsuits. Stay informed on school liability cases, insurance disputes, and victims’ rights under New York law. Subscribe now to JacobiJournal.com for in-depth legal coverage and exclusive updates. 🔎 Read More from JacobiJournal.com:
North Carolina Man Faces 21 Felony Charges for ID Theft, Insurance Fraud
May 06, 2025 | JacobiJournal.com – North Carolina Man: A 30-year-old man faces 21 felony charges after allegedly stealing multiple identities and filing fraudulent auto insurance claims with several major carriers. Fraud Spanned Six Months and Four Insurers According to the North Carolina Department of Insurance (NCDOI), Damain Rayshawn Cummings assumed the identities of at least six individuals between September 2024 and March 2025. During that time, he filed false auto claims with Progressive, State Farm, Liberty Mutual, and Allstate. North Carolina Man Investigation Led by NCDOI Authorities became aware of the scheme after suspicious activity flagged several claims. NCDOI investigators launched a full investigation and uncovered evidence suggesting that Cummings accessed victims’ personal data—potentially through birth certificates and email accounts. He was arrested and appeared in court on April 30, where he was later released on a $300,000 bond. Charges Include Insurance Fraud and Identity Theft The charges include multiple counts of insurance fraud, identity theft, and theft by deception. Officials said the case underscores the ongoing risk of identity-based insurance scams in North Carolina and across the country. Authorities Urge Vigilance State officials are encouraging residents to monitor their insurance records, review credit reports, and report any unauthorized claims immediately. The NCDOI continues to investigate whether additional individuals were affected. Source FAQs: About the North Carolina Man Insurance Fraud Case What charges does the North Carolina man face in the ID theft and insurance fraud case? The North Carolina man is facing 21 felony charges, including multiple counts of insurance fraud, identity theft, and theft by deception. How did authorities catch the North Carolina man accused of insurance fraud? Investigators from the North Carolina Department of Insurance discovered suspicious claims activity, which led to uncovering the North Carolina man’s alleged identity theft scheme. What steps can protect against schemes like the one involving the North Carolina man? Residents are advised to review insurance policies regularly, monitor credit reports, and immediately report any suspicious claims to the North Carolina Department of Insurance. Track major fraud cases, workers’ comp litigation, and insurance crime news at JacobiJournal.com — your trusted source for updates and expert insights. 🔎 Read More from JacobiJournal.com:
Contractor Liable for Paralyzed Worker’s Injuries Under Statutory Employment Doctrine
April 24, 2025 | JacobiJournal.com — Contractor Liable: The Michigan Court of Appeals recently ruled that a contractor is liable for the injuries sustained by a worker who was paralyzed after falling from a height on the job. The court’s decision relies on the statutory employment doctrine, which holds contractors responsible for workers under certain contractual agreements, even if they are not directly employed by the contractor. In this case, a worker employed by an uninsured subcontractor suffered life-changing injuries after a fall on a construction site. The worker’s direct employer lacked insurance. However, the court found that the contractor’s contract with the subcontractor’s agent made the contractor the worker’s statutory employer. As a result, the contractor had to cover the worker’s medical costs, lost wages, and additional benefits due to permanent paralysis. Statutory Employment Doctrine and Workers’ Compensation The statutory employment doctrine ensures workers can seek compensation from a general contractor if their direct employer lacks workers’ compensation coverage. This case emphasizes that contractors must take responsibility for workers’ safety and insurance, even if they don’t directly employ the worker, as long as a valid contract exists. The ruling underlines the importance of ensuring that everyone involved in a construction project is properly insured. Contractors must bear responsibility when subcontractors fail to meet insurance obligations. Contractors Must Prioritize Safety and Compliance This ruling sends a strong message to contractors about the need to prioritize safety compliance and insurance coverage. Contractors must ensure workers have the right insurance, especially after an accident. Failure to do so can lead to legal consequences, as this case shows. Contractors and subcontractors should carefully review contracts and ensure all parties have adequate insurance. Doing so protects workers and helps prevent financial liability. A Legal Reminder of Worker Protection The court’s decision highlights the worker’s right to fair compensation, even if the direct employer lacks insurance. It also reinforces contractors’ responsibility to provide workers’ compensation when needed. This case could set a significant legal precedent for similar claims in Michigan and other states. Source FAQs: Statutory Employment Doctrine What is the statutory employment doctrine? The statutory employment doctrine holds contractors legally responsible for workers’ compensation benefits when their subcontractors lack proper insurance. How did the statutory employment doctrine apply in this Michigan case? The court found the contractor liable for the worker’s injuries under a valid contract, despite the worker being employed by an uninsured subcontractor. Why should contractors be concerned about the statutory employment doctrine? Failure to ensure subcontractors have insurance can lead to costly legal liability, medical expense coverage, and permanent injury compensation claims. For more insights into workers’ compensation and liability claims, visit JacobiJournal.com. 🔎 Read More from JacobiJournal.com:
Janitorial Services Owner Sentenced in $1.45M Fraud Case
April 24, 2025 | JacobiJournal.com — A janitorial services owner was sentenced to 270 days in county jail and two years of formal probation after pleading no contest to insurance fraud and tax evasion. The conviction underscores the growing scrutiny on small business operators in the cleaning and maintenance sector, where accurate payroll reporting and tax compliance are essential to fair competition. Martha Toro, who owns MT Janitorial Services, will also pay $1,454,130 in restitution, fines, and interest. Of that amount, Markel Insurance will receive $848,370 to cover the losses sustained through underreported payroll, while $605,760 will go to the Franchise Tax Board (FTB) for unpaid taxes. This case demonstrates how fraudulent conduct in the janitorial services industry can result in severe legal consequences and substantial financial penalties. Years of Payroll Fraud Exposed Janitorial Services Owner Sentenced: Investigators began looking into Toro’s business in February 2020 after Markel Insurance raised concerns. They discovered Toro had intentionally underreported her number of employees from 2013 to 2020 to lower her workers’ compensation premiums. This fraud caused Markel Insurance to lose over $800,000. Meanwhile, Toro also falsified her state tax returns from 2016 to 2020, avoiding hundreds of thousands in taxes. Investigators Respond Swiftly The California Department of Insurance (CDI) led the investigation with assistance from the Franchise Tax Board. Their coordinated efforts confirmed that Toro misrepresented payroll information year after year, creating a pattern of deception that significantly impacted the janitorial services sector. According to the CDI, underreporting payroll not only defrauds insurers but also endangers workers—especially if they are injured on the job without proper insurance coverage. In industries like janitorial services, where employees often face physical risks from cleaning chemicals, heavy equipment, and demanding schedules, the absence of adequate coverage can leave injured workers without medical support or wage replacement. This case highlights the importance of strict compliance and oversight in protecting both employees and the public. Tax Fraud Harms the Public Beyond insurance losses, Toro’s actions harmed California taxpayers. “Tax evasion threatens essential public services,” the FTB said. “By shutting down underground economic activity, we protect resources for education, healthcare, and infrastructure.” In this case, the fraudulent practices tied to the janitorial services industry not only deprived the state of critical tax revenue but also weakened the competitive landscape. When companies like MT Janitorial Services skirt tax laws, they avoid paying into the very systems that maintain public resources. Over time, these unethical actions can lead to reduced funding for community programs, strained government budgets, and diminished trust in local businesses. Fraud Creates Unfair Business Advantages Deputy District Attorney John MacKenzie, who prosecuted the case, highlighted how such fraud distorts the marketplace. “Toro gained an unfair edge by lowering her business costs illegally,” he said. “This hurts honest employers who follow the rules and puts customers at risk.” Because Toro’s business appeared cheaper, it won contracts at the expense of law-abiding competitors. Over time, this undermines trust and damages entire industries. Source: CDI FAQs: Janitorial Services Owner Fraud Case What led to the janitorial services owner being sentenced? Investigators found that the owner underreported payroll for years, defrauding an insurer and evading state taxes. How much did the janitorial services owner have to pay in restitution? The court ordered over $1.45 million in restitution, with payments to Markel Insurance and the California Franchise Tax Board. Why is payroll fraud harmful to honest businesses? It gives fraudulent companies an unfair cost advantage, undermining competitors who follow legal and ethical rules. Stay informed on workers’ comp fraud, employer violations, and legal enforcement by visiting JacobiJournal.com for weekly updates. 🔎 Read More from JacobiJournal.com:
Florida Insurance Broker Pleads Guilty ACA Fraud Scheme
April 22, 2025 | JacobiJournal.com – A South Florida insurance broker has pleaded guilty to orchestrating a $134 million Affordable Care Act (ACA) fraud scheme that exploited federal health subsidies and targeted society’s most vulnerable. Dafud Iza, 54, of Pembroke Pines, entered his guilty plea last Friday in federal court in the Southern District of Florida. He now awaits sentencing and could face up to 10 years in prison, along with a substantial restitution order. Broker Licenses Revoked After Years in the Industry Florida Insurance Broker: Iza previously held multiple insurance licenses in Florida, including property and casualty, temporary life, and health insurance credentials. However, the Florida Department of Financial Services confirmed all his licenses are now inactive. His appointment with Liberty Mutual Insurance expired in 2012. Although court records did not identify his most recent employer, Iza’s LinkedIn profile listed him as Director of Operations at Compass Health Insurance in Tequesta since May 2024. Before that, he spent nearly eight years as Executive Vice President at Fiorella Insurance Agency in Stuart, Florida. Scheme Targeted Vulnerable Populations According to the U.S. Department of Justice, Iza and his accomplices specifically targeted low-income individuals—including those facing homelessness, job loss, or mental health and substance abuse challenges. Street-level marketers, allegedly working under Iza’s direction, offered cash incentives to entice these individuals to enroll in ACA health plans. How the Fraud Worked The ACA, also known as ObamaCare, provides federal tax subsidies to insurers that enroll eligible consumers. Iza’s team manipulated this system by submitting falsified applications. They exaggerated applicants’ incomes to meet subsidy requirements and sold ACA plans to individuals who didn’t qualify. As a result, federal insurers disbursed $134 million in improper subsidies based on the false data. The scheme not only drained taxpayer funds but also compromised the integrity of a healthcare system designed to help those in genuine need. Upcoming Sentencing and Legal Fallout Iza pleaded guilty to felony charges related to health care fraud and could face up to a decade in prison. Federal prosecutors emphasized that restitution will be pursued, though the final amount remains undetermined. The case underscores the ongoing risks of fraud in publicly subsidized healthcare programs—and the importance of oversight in broker-led enrollments. Learn more about ongoing federal enforcement actions by visiting the U.S. Department of Justice – Health Care Fraud Cases. FAQs: Florida Insurance Broker ACA Fraud Scheme What did the Florida insurance broker plead guilty to? The Florida insurance broker admitted orchestrating a $134 million ACA fraud scheme that exploited federal subsidies and targeted low-income, vulnerable individuals. How did the Florida insurance broker ACA fraud scheme work? The broker and accomplices submitted falsified applications, inflating incomes so applicants would qualify for ACA subsidies, resulting in $134 million in improper payouts. What penalties does the Florida insurance broker face? The broker faces up to 10 years in federal prison, restitution for the $134 million in fraudulent subsidies, and permanent revocation of all insurance licenses. Stay informed on the latest developments in insurance fraud and healthcare regulation at JacobiJournal.com. 🔎 Read More from JacobiJournal.com:
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 FAQs: Former Texas Insurance Broker Why was the former Texas insurance broker charged with theft? Authorities allege he collected payments for insurance policies he never purchased and kept the funds. When was the former Texas insurance broker’s license revoked? His license was revoked in June 2024, months before he allegedly continued selling insurance policies. How can clients report fraud by a former Texas insurance broker? Victims can contact the Texas Department of Insurance or local law enforcement to file a report. Stay ahead of insurance fraud news by following updates on JacobiJournal.com. 🔎 Read More from JacobiJournal.com:
American Labor Alliance Execs Convicted in Multi-Million Dollar Fraud
April 15, 2025 | JacobiJournal.com — American Labor Alliance Execs Convicted: After a 19-day trial, a federal jury convicted three Fresno defendants of orchestrating a sweeping fraud involving fake pension plans, bogus workers’ compensation coverage, and sham hardship exemptions. U.S. Attorney Phillip A. Talbert announced the verdict Tuesday. Marcus Asay, 68, Antonio Gastelum, 53, and their business—Agricultural Contracting Services Association, doing business as American Labor Alliance (ALA)—ran the schemes from 2011 through 2019, targeting thousands of workers and businesses across the country. Fraudulent Retirement Plan Misled Over 3,000 Workers Asay, founder and chairman of ALA, and Gastelum, who held multiple executive titles, convinced over 3,000 individuals to invest in a fake 401(k) retirement plan. Instead of managing the funds properly, the defendants funneled contributions into personal and business expenses. This included luxury dining, rare coins, online companion services, and rent for Asay’s lakefront home in Fresno. American Labor Alliance Execs To conceal the misappropriation, the defendants used funds from another fraudulent operation—fake workers’ compensation coverage—to cover supposed pension obligations. Losses from the retirement scheme exceeded $750,000. Workers’ Compensation Scam Involved Fake Insurance Certificates The second scheme involved false promises of workers’ compensation coverage. ALA told customers in California and other states that major national insurers backed their policies. In reality, those insurers were never involved. To maintain the illusion, ALA issued counterfeit certificates and policy declarations, allowing businesses to submit fraudulent documents to clients and regulators. When investigations began, ALA urged customers not to cooperate with authorities. The total fraud in this area exceeded $2.25 million. Hardship Exemptions Sold Under False Pretenses Asay and ALA also ran a third grift by charging individuals for bogus exemptions from the Affordable Care Act’s insurance mandate. While they promised to shield buyers from the ACA’s shared responsibility payment, the exemptions were neither valid nor legal. Only government agencies can issue such exemptions—and they’re free for qualified individuals. Sentencing and Potential Penalties The three defendants face sentencing on October 21, 2024, before U.S. District Judge Dale A. Drozd. Each fraud conviction carries up to 20 years in prison, with fines ranging from $250,000 to $500,000 per count. ALA could be fined up to $8.5 million. The case was investigated by multiple federal agencies, including the FBI, IRS Criminal Investigation, and Department of Labor, with prosecution led by Assistant U.S. Attorneys Michael Tierney, Joseph Barton, and Stephanie Stokman. Source: U.S. Department of Justice – DOJ Press Release FAQs: American Labor Alliance Execs Convicted Fraud Case What schemes were the American Labor Alliance execs convicted of? The American Labor Alliance execs convicted were found guilty of running fraudulent pension plans, fake workers’ compensation coverage, and bogus ACA exemptions. How many victims were impacted by the American Labor Alliance execs convicted case? Over 3,000 workers and numerous businesses nationwide were affected by the schemes tied to the American Labor Alliance execs convicted verdict. What penalties do the American Labor Alliance execs convicted face? The American Labor Alliance execs convicted face up to 20 years in prison per fraud count, millions in fines, and restitution for defrauded victims. Stay informed about major fraud cases and workers’ compensation enforcement at JacobiJournal.com. Read More from JacobiJournal.com