HomeInsurance$ 1.4 million in pretend employees' insurance coverage premiums collected by an...

$ 1.4 million in pretend employees’ insurance coverage premiums collected by an unlicensed insurance coverage agent in California.

The previous Costa Mesa resident, who was arrested in October on suspicion of amassing greater than $ 1.4 million from firms that pay dummy employees’ compensation insurance coverage, was delivered to trial for the primary time in Orange County final week to face a number of great crimes.

Caryl Lynn Reed, 57, was taken into custody in Seabrook, Texas after which introduced earlier than a choose in Santa Ana throughout a prosecution listening to on October 27, the California Insurance coverage Division mentioned in a press launch. In response to courtroom information, she was charged with a number of felonies of theft, embezzlement and forgery.

In response to CDI officers, Reed labored as an unlicensed insurance coverage agent and managed two firms known as Envoy Enterprise Companions and Allenn Specialty Group. The prosecutor’s workplace accuses her of utilizing these firms to provide pretend insurance coverage certificates with a view to trick her victims into premiums for non-existent insurance coverage protection.

“RS. Reed’s alleged actions put the homeowners of those companies in danger by stealing their cash and leaving it uninsured,” mentioned State Insurance coverage Commissioner Ricardo Lara.

One of many firms allegedly defrauded by Reed discovered that it was not protected when one in every of its workers was injured at work, in accordance with CDI officers. One other discovered that he was not insured and was assigned a coverage quantity from one other firm.

The general public defender representing Reed couldn’t be reached for remark. Reed is because of return to courtroom in December.

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