Broker from North Hollywood Pleads No Contest

Insurance broker Shahin Sean Pelaseyed, 46, of North Hollywood has pled no contest to one count of grand theft of insurance premiums in a Van Nuys Superior Court. The Van Nuys Attorney’s Office and Pelaseyed reached an agreement by which he will pay no less than $10,306 in restitution to the court by April 9, 2001—the date set for his sentencing.

Other terms of the agreement include 180 days in county jail, a voluntary surrender of Pelaseyed’s fire and casualty insurance license and prohibition from obtaining employment in a fiduciary/trust capacity. Pelaseyed was originally charged with five felony counts of grand theft of insurance premiums, which was in violation of probation placed upon him after a 1997 theft conviction.

According to California Department of Insurance investigators, Pelaseyed operated Sean Pelaseyed Insurance Services, providing commercial policies to trucking companies in Northern and Southern California. From January 1999 to August 1999, the broker collected at least $28,000 from five trucking companies for commercial policies, yet he sent only partial payments to some insurance companies and no payments to others. Complaints from owners of two of the trucking companies led the CDI to investigate.

According to the investigation, in December 1997, Pelaseyed pled nolo contendere to one misdemeanor count of diversion of funds, but was convicted and sentenced to 36 months of formal probation and to make full restitution to the victim, who was an owner of another California trucking company. As a result, the CDI is seeking revocation of Pelaseyed’s insurance license based upon this conviction. Pelaseyed could face up to three years and eight months in prison, and be ordered to pay restitution in the amount of $30,000.

Topics California Agencies