News: 2006 Press Release
For Release: December 26, 2006
Media Calls Only: 916-492-3566
Former Insurance Agent to Serve Jail Time and Pay Back
Los Angeles Businesses He Defrauded
California Department of Insurance Investigation turns up fraud against 14 small businesses
LOS ANGELES - Insurance Commissioner John Garamendi announced today that thanks to an investigation by the California Department of Insurance (CDI), Investigation Division, 14 small businesses in the
Los Angeles area defrauded by former insurance agent Ray Ramiro Reyes will be getting their money back. Reyes, 33, pleaded nolo contendre to two felony counts of Grand Theft. The Los Angeles County District Attorney's Office secured the conviction against Reyes, a former fire and casualty agent/broker, for selling fraudulent workers' compensation and commercial fire and liability insurance policies to 14 small business owners in
Los Angeles
County.
"I can't stress enough how important it is for consumers- whether individuals or businesses- to know who you are putting your trust in to take care of your insurance needs," said Garamendi. "With just a few clicks of the mouse, our CDI website can tell you whether your agent or broker is licensed and in good standing."
Reyes' agent/broker license was revoked by the Department in September, 2002 for various penal and vehicle code violations. In June 2005, an investigation by the CDI Investigation Division, Valencia Office, determined that Ray Ramiro Reyes sold fraudulent workers' compensation and commercial fire and liability insurance policies shortly after his license was revoked. Reyes collected a total of $54,379.00 in premium for the fraudulent policies. In September, 2005 the case was referred to the Los Angeles County District Attorney's Office.
Reyes will be sentenced on January 23, 2007. As part of the plea agreement, Reyes will serve 32 months in state prison and pay $54,379.00 in restitution. A portion of the restitution, $25,000.00, is due on his sentencing day. Reyes will be ordered to pay the remaining $29,379.00 to his 14 victims prior to the conclusion of his sentence and/or parole.
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