Ex-California insurance agent convicted of theft and embezzlement

Former insurance agent Blanca Lidia Guzman, 40, of Palmdale, Calif., was sentenced in Los Angeles County Superior Court on Wednesday on one count of grand larceny after pleading no contest to defrauding consumers.

Guzman allegedly stole more than $16,000 in premiums from the insurance company she worked for and its clients while leaving many of those clients without insurance coverage. She was sentenced to pay restitution and perform 10 days of community service.

A California Department of Insurance investigation began after receiving complaints from Guzman’s employer.

The investigation reportedly found that Guzman entered false information into the company’s database to avoid submitting client funds. She allegedly submitted fabricated evidence of insurance documents to escrow companies in order to complete the sale or refinance the victims’ homes, then cashed the escrow companies’ checks issued for the insurance.

Guzman also allegedly forged his clients’ electronic signatures on insurance policy applications to place other policies at a much later date with another company without his clients’ knowledge. His actions left several customers without insurance coverage and resulted in the theft of at least $16,128.

The CDI revoked Guzman’s license on February 1, 2021. The Los Angeles County District Attorney’s Office is pursuing the case.

Topics
California agency fraud

Was this item valuable?


Here are some other articles you might like.

Interested in Agencies?

Receive automatic alerts for this topic.

Comments are closed.