Calif. Insurance Agent Pleads Guilty for Grand Theft

The California Department of Insurance announced that insurance broker Christopher Luna has pleaded guilty at the West Covina, Calif., Courthouse to two felony counts of Grand Theft. Luna was ordered to serve three years of formal probation, perform 90 days of Caltrans service, pay restitution of $74,238 and pay fines and penalties in excess of $280.

According to CDI investigators, between March 2009 and February 2010 Luna, dba Chris Luna Insurance Agency in Hacienda Heights, Calif., received payments of $31,650 and $42,888 from a property management company to pay for earthquake policies for two different homeowner associations (HOA). After receiving the payments, Luna placed coverage for both HOA’s with different insurance companies. However, Luna only submitted a portion of premiums to one insurance company and submitted no premium payments to the other insurance company. Both policies canceled for nonpayment of premium.

The property management company filed a complaint with the CDI after receiving the cancellation notices.

This case was investigated by the California Department of Insurance (CDI) Los Angeles Investigation Division and Los Angeles County Sheriff Department. It was prosecuted by the Los Angeles County District Attorney’s Office. CDI has revoked Luna’s license to sell insurance.

Source: CDI