Calif. Man Arrested for Auto Insurance Fraud

Samuel Tufino Machado, 22, also known as Salvador Castaneda, was arrested and booked into the Sacramento County Jail on two felony counts of insurance fraud with special allegations that the crimes were committed while he was out on bail. If convicted, he could face up to five years in prison and/or a maximum fine of $50,000. The Sacramento County District Attorney’s Office is prosecuting the case.

Machado was allegedly involved in a motor vehicle accident with his 1996 Cadillac on Sept. 7, 2002. The vehicle was declared a total loss. According to authorities, Machado reportedly claimed that the tow truck driver stole stereo equipment from the vehicle and submitted to the insurer a receipt from a stereo company for $6,249.50 worth of equipment.

An inspection of the vehicle suggested there was no wiring to support the alleged stolen items and the owner of the company confirmed that he never sold or installed any equipment for Machado.
Anaheim Agent Pleads Guilty to Felony Counts of Grand Theft

The CDI Criminal Investigations Branch arrested Gary Stromme, 47, at his Anaheim, Calif., business office on May 9, 2002 by members of CDI’s Fraud Division. Stromme plead guilty to two felony counts of grand theft in Orange County Superior Court.

Stromme was sentenced to serve 365 days in Orange County Jail, placed on five years of formal probation, and ordered to pay full restitution to his victims. Several of Stromme’s reported victims were a Loyal Order of Moose Lodges that paid him insurance premiums without receiving a valid policy.

Stromme allegedly obtained an insurance premium from the Moose Lodges without remitting it to the insurance company and then issued fraudulent insurance certificates to the individual Moose Lodges.

An order of immediate suspension was issued against Stromme’s insurance license and additional administrative action is pending.

Topics California Auto Fraud