CA: Insurance Agent Sentenced to 8 Months in Jail for Stealing Tens of Thousands in Insurance

SACRAMENTO, CA - Insurance Commissioner Steve Poizner today announced that Randy Jay Barrett, 41, of Canoga Park was sentenced to 240 days in jail and five years probation after pleading guilty to one count of felony grand theft. Barrett was also ordered to make restitution to his victim and a hearing will be held Jan. 11, 2010 to determine that amount.

"Insurance agents who play games with their customers' money and trust will ultimately lose," said Commissioner Poizner. "If you decide to break the law, CDI investigative teams will find you and help prosecute you. Crime never pays but you will pay if you do the crime."

A California Department of Insurance (CDI) investigation determined that between April 2002 and May 2006 Barrett collected insurance premiums totaling $160,491 for workers’ compensation, liability and property coverage from his client, the manager of a card club located in Ventura . Barrett placed a portion of the coverage and refunded some of the monies, but left his client without workers’ compensation insurance for the entire period. Barrett failed to refund $36,401.

The client, who had a friendship with Barrett, was unaware of the lack of coverage because Barrett reassured him that everything was in order. When the client went to another agency to purchase workers’ compensation insurance, he learned he had not been covered and filed a complaint directly with CDI.

The case was referred to the Ventura County District Attorney in May of 2008, and after further investigation by the District Attorney’s office and CDI, the criminal case was filed against Barrett on April 15, 2009, charging him with one count of grand theft by embezzlement. On May 6, 2009, due to the seriousness of the charges against him, CDI ordered Barrett from participating in the insurance business and his license has been revoked.

Commissioner Poizner oversees 16 CDI Enforcement Branch regional offices throughout the state. Approximately 1,900 insurance fraud-related arrests have been made by the Department of Insurance’s enforcement division since Commissioner Poizner took office in 2007 – more arrests than have been made during any other two year period, under any previous insurance commissioner.

Source: Calif. Dept. of Insurance