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Friday, December 3, 2021

Unlicensed California Insurance coverage Agent Arraigned in $1.4M Staff’ Comp Fraud Scheme

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Unlicensed insurance coverage agent Karyl Lynn Reed, 57, previously of Cosa Mesa, Calif., was arraigned this week on a number of felony counts of grand theft, forgery, embezzlement, and aggravated white-collar crime after allegedly defrauding three victims of over $1.4 million.

Reed was arrested in Seabrook, Texas, and extradited to Orange County, earlier this month.

An investigation by the California Division of Insurance coverage reportedly discovered that between 2012 and 2019, Reed acted as an insurance coverage agent with no license and picked up premiums for staff’ compensation insurance coverage by means of her companies, Envoy Enterprise Companions and Allenn Specialty Group. She allegedly offered victims with fraudulent certificates of insurance coverage, inflicting them to consider they’d legitimate protection when there was really none.

The CDI investigation reportedly found Reed additionally operated a staffing firm with out legitimate staff’ comp protection and personally adjusted and administered worker harm claims. She collected staff’ comp premiums and payroll, employer and worker taxes from victims, and offered them with falsified Certificates of Insurance coverage as nicely main them to consider they have been lined after they weren’t, in line with investigators.

It was reported that one sufferer didn’t have staff’ comp protection for an worker who grew to become injured. One other sufferer reportedly had requested an up to date certificates of insurance coverage from an insurer and was informed no coverage or protection was in place and discovered the coverage quantity Reed had offered belonged to a coverage for an additional enterprise. One other reported sufferer found the cash they have been paying Reed to her staffing service was not being remitted to the insurance coverage firm.

This case is being prosecuted by the Main Fraud Unit of the Orange County District Legal professional’s Workplace.

Subjects
California
Businesses
Fraud
Staff’ Compensation

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