$1.8 Million Embezzlement Scheme: What Happens When Trusted Agents Betray
It’s fair to assume that licensed insurance agents are among the most trustworthy professionals you can find in the financial sector. They are required to go through extensive training and testing, abide by strict limitations on what they can and cannot promise, and must act in your and your family’s best interests. However, if you look at a recent arraignment in California, it’s clear that even insurance agents can mislead and betray.
If you’re looking for a consumer rights attorney in the wake of a professional scam, the team at the Law Offices of Robin D. Perry & Associates should be your first call. Led by Robin D. Perry, Esq., we advocate aggressively for our clients and fight for the justice they deserve. Mr. Perry has decades of experience in the practice of law, including time as a litigation attorney in a multinational firm, time spent as a Deputy District Attorney, and now the founder of the Law Offices of Robin D. Perry & Associates. Call us at 562-216-2944 to discuss your case with our consumer rights law firm.
The Case at a Glance
This case involves a former insurance agent in Palmdale. Allegedly, the agent in question convinced multiple clients and personal acquaintances to invest more than $1.8 million in a marijuana business named House of Green. The main issue with this business is that it never actually existed.
This is considered an exploitation of the agent’s clients. Clients should be able to trust their insurance agents to guide them to choices that benefit them—or that at the very least do not harm them. This extends to the agent’s exploitation of his acquaintances. Even if they were not his clients, his use of his position as a licensed insurance agent to secure investments for a non-existent business is a clear abuse of his position.
The case caught the attention of the California Department of Insurance when two victims who reported investing more than $1.3 million in House of Green, only to never actually see any return on their investment. The agent continuously refused to update them on their investment and didn’t even provide proof of the business’s existence.
The investigation uncovered 12 more victims who invested in the agent’s fake business. Instead of using the money to build a business, the agent financed lavish Palmdale homes and new Cadillac Escalades. He used the money to further his public image and business.
In an unrelated case, this agent and his wife had earlier lost their insurance agent licenses after stealing agents’ identities and using them to collect commissions.
The Bare Bones of an Embezzlement Scheme
Why does fraud of this kind succeed? How do fictitious businesses get millions of dollars in investments when legitimate businesses can’t even get thousands?
These scams are wrapped in an appearance of legitimacy, largely due to the professional’s license and professional reputation. Consumer rights lawyers have helped many victims targeted by those who were supposed to help them.
Wondering if you’ve been targeted by a scam? Look for a few common signs. First, were you sold on the idea of an exclusive opportunity? Even better, were you told that this opportunity is time-sensitive? This sense of urgency is used to keep people from investigating the “opportunity” further. These schemes are also marked by a complete lack of transparency. Requests for more information or proof of the investment are met by silence, excuses, or even aggression.
When the pressure builds, victims are often subjected to silencing tactics. The fraudster may stall, produce falsified documentation, threaten legal action, or issue partial repayments. The goal is to keep the fraud running as long as possible so they can move the money out of the victim’s reach. That’s why it’s important to act quickly with the help of a consumer rights attorney in California.
How Victims Can Seek Justice
There are a few routes that a victim may use to seek justice. First, the case may be referred for criminal prosecution. This often comes after regulatory oversight—in this case, by the Department of Insurance. The licensing division may refer the case to the appropriate authorities, and in addition, they may take the fraudster’s professional license.
Victims can also turn to consumer rights lawyers for help with a civil lawsuit. They may sue the fraudulent party to recoup their financial losses.
Choose Our Consumer Rights Law Firm for Your Case
If you’ve been defrauded by someone you trusted, you may be able to recoup your losses—but you have to act quickly. Let’s talk more about your options. Get in touch with us online or call us at 562-216-2944.
Attorney Robin D. Perry has been part of the Long Beach Community for over 25 years handling business litigation, employment litigation and advising, criminal defense, personal injury and code enforcement defense for businesses.
