Former insurance agent charged with grand theft and insurance fraud

Former insurance agent charged with grand theft and insurance fraud | Insurance Business America

Legal Insights

Former insurance agent charged with grand theft and insurance fraud

Legal Insights

By
Miko Pagaduan

Former insurance agent Phong Thanh Nguyen has been charged with two felony counts of grand theft and insurance fraud by the Orange County District Attorney’s Office.

According to the California Department of Insurance, Nguyen illegally pocketed $37,000 in commissions from two life insurance companies between February and March 2019.

An investigation was opened after a complaint was received, which alleged that Nguyen received commissions on policies with no intention of keeping them active.

The investigation found that Nguyen wrote nine policies in one month that lapsed prematurely once the commission was paid.

California law requires agents to pay back unearned advance commissions, and Nguyen did not pay back any of the commissions he received from this scheme. This constitutes insurance fraud and theft, according to the Department of Insurance.

Consumers are advised to check the license status of their agent or contact the Department of Insurance if they suspect they may be a victim of insurance fraud. Nguyen’s license expired on December 31, 2020.

Nguyen remains at large, and the Department of Insurance is urging anyone with information to call 714-712-7600. It is important to note that insurance fraud is a serious offense, and perpetrators can face severe penalties, including jail time and fines.

Consumers warned to be vigilant against fraud

The case serves as a reminder for consumers to be vigilant when choosing an insurance agent and to thoroughly research their credentials before making a decision. The California Department of Insurance offers resources and information to help consumers make informed decisions and avoid becoming victims of fraud.

The Department of Insurance works to protect consumers from fraudulent insurance activities, including scams, false advertising, and illegal practices. The department investigates and prosecutes individuals and companies engaged in insurance fraud and works to ensure that insurance companies are providing fair and honest services to consumers.

Consumers are urged to check the license status of their agents and to contact the Department of Insurance if they suspect any fraudulent activities.

The department will continue to work to protect consumers from fraudulent insurance activities and hold perpetrators accountable for their actions.