For Release: February 16, 2006
Media Calls Only: 916-492-3566
Insurance Commissioner John Garamendi Announces Sentencing of Former Farmers Insurance Agent for Insurance Premium Theft
Former agent sentenced to three years probation and ordered to pay restitution of $13,460 for three felony counts of Grand Theft
SAN DIEGO - Insurance Commissioner John Garamendi announced Thursday that Gary Calcagno, 48, of Carlsbad, has been sentenced to three years probation and ordered to pay $13,460 restitution for stealing premiums from 20 clients.
Calcagno's sentencing on Tuesday resulted from an investigation led by the California Department of Insurance's (CDI) Investigation Division. A Farmers Insurance internal audit of his handling of insurance premiums had revealed that during a six-month period in 2003 Calcagno failed to remit insurance premiums to the company totaling $13,460.72. Calcagno worked for Farmers from May 24, 1994 to July 10, 2003.
"Insurance agents owe it to their clients to practice business in honesty and good faith," said Commissioner Garamendi. "This act, and others like it, hurts not only the clients, but also damages the insurance industry in the eyes of consumers."
In an additional case, another investigation by CDI showed that between December 2002 and July 2003, Calcagno sold homeowners insurance policies to six clients in San Diego and Riverside counties. He collected premiums totaling $5,528 from these clients, but failed to remit funds to Pacific Specialty Insurance Company.
In that case he was convicted on August 31, 2005 of three felony counts of Grand Theft. Prior to his sentencing, he had already paid $5,528 in restitution to the six victims. The San Diego County District Attorney's Office, Insurance Fraud Division prosecuted that case.
The CDI urges consumers to contact their insurance company directly to verify the validity of their insurance policies. For more information, consumers can contact the CDI Consumer Hotline at (800) 927-HELP (4357) or visit the CDI Web site at www.insurance.ca.gov. Telecommunications Devices for the Deaf (TDD), please dial (800) 482-4833.
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