Unlicensed California insurance agent indicted in $ 1.4 million worker tax evasion scheme
Unlicensed insurance agent Karyl Lynn Reed, 57, formerly of Cosa Mesa, Calif., Was arraigned this week on multiple counts of robbery, forgery, embezzlement and collar crime. White aggravated after allegedly defrauding three victims over $ 1.4 million.
Reed was arrested in Seabrook, Texas and extradited to Orange County earlier this month.
A California Department of Insurance investigation reportedly found that between 2012 and 2019, Reed acted as an unlicensed insurance agent and collected workers’ compensation insurance premiums through his companies, Envoy Business Partners and Allenn Specialty Group. She allegedly provided victims with fraudulent insurance certificates, making them believe they had valid coverage when there was none in reality.
CDI’s investigation reportedly discovered that Reed also operated a recruiting business without valid health insurance coverage for workers and that she had personally adjusted and managed employee injury claims. According to investigators, she collected premiums and wages from workers, taxes from employers and employees of the victims, and provided them with forged insurance certificates, making them believe they were covered when they were not there. were not.
It was reported that a victim did not have workers’ compensation coverage for an employee who was injured. Another victim allegedly requested an updated insurance certificate from an insurer and was told that no policy or coverage was in place and discovered that the policy number Reed provided belonged to a policy of another business. Another reported victim discovered that the money they paid Reed to his staffing department was not returned to the insurance company.
This case is being pursued by the Major Fraud Unit of the Orange County District Attorney’s Office.
California Agency Fraudulent Workers Compensation
Was this article helpful?
Here are other articles you might like.
Interested in Agencies?
Receive automatic alerts for this topic.