California man charged on suspicion of acting as an insurance agent without a license, pocketing premiums

A Fullerton man was charged on Monday, April 10, for his suspected position in performing as an insurance coverage agent with out a legitimate license and pocketing unearned premiums from cancelled insurance policies.

Gregory Magedman, a previously licensed insurance coverage agent, was charged in Orange County Superior Court docket with one felony rely of grand theft by embezzlement after he allegedly secured insurance coverage for a shopper and failed to provide the fee to the insurance coverage firm, the California Division of Insurance coverage mentioned in a information launch. He's suspected of preserving the cash from the funds for private use and leaving the patron uninsured.

In November 2011, Magedman, 77, was issued a suspension order by the Division of Insurance coverage due to a prison investigation. He pleaded responsible in 2012 to at least one rely of grand theft and his insurance coverage license was revoked by the state insurance coverage company.

The newest embezzlement cost stems from a 2018 investigation into Magedman after the division obtained a grievance alleging he was performing as an insurance coverage agent with out a legitimate license.

A sufferer had bought a business legal responsibility coverage for his or her truck and trailer from Magedman, offering him with the down fee and financing the coverage with a premium finance firm, in keeping with the Insurance coverage Division. The insurance coverage firm’s managing common agent obtained the financed premium portion of the coverage, however the coverage was cancelled after Magedman did not submit the retail dealer’s portion of the premium — leaving the sufferer uninsured.

Magedman is suspected of embezzling the premium of the coverage after it was cancelled for non-payment, all whereas performing with out a license.

Customers who suspect they're victims of insurance coverage fraud ought to contact the Division of Insurance coverage at 800-927-4357.

The Insurance coverage Division additionally urges customers to examine the license standing of their agent on-line.

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