Unlicensed insurance coverage agent Karyl Lynn Reed, 58, previously of Cosa Mesa, California, was convicted final week on a number of felony counts of embezzlement and white-collar fraud enhancements after defrauding three victims of over $1.4 million.
Reed was sentenced to 4 years in jail and ordered to pay greater than $1.4 million in restitution.
Reed was arrested final yr in Seabrook, Texas, and was arraigned on Oct. 27, 2021, in Orange County after she was extradited.
An investigation by the California Division of Insurance coverage reportedly discovered that between 2012 and 2019, Reed acted as an insurance coverage agent and not using a license and picked up premiums for staff’ compensation insurance coverage via her companies, Envoy Enterprise Companions and Allenn Specialty Group. She would offer her victims with fraudulent certificates of insurance coverage, inflicting her victims to consider they’d legitimate protection when there was really none.
The investigation reportedly found Reed additionally operated a staffing firm with out legitimate staff’ comp protection and personally adjusted and administered worker damage claims. She collected staff’ comp premiums and payroll, employer and worker taxes from victims, and supplied them with falsified certificates of insurance coverage as properly main them to consider they have been coated once they weren’t.
The CDI’s investigation confirmed 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 their insurance coverage firm and have been advised no coverage or protection was in place and discovered the coverage quantity Reed had supplied them belonged to a coverage for an additional enterprise.
The CDI investigation additional revealed one other sufferer who found the cash they have been paying Reed to her staffing service was not being remitted to the insurance coverage firm.
The case was prosecuted by the Orange County District Lawyer’s Workplace.
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