North Hollywood Broker Sentenced

A North Hollywood, Calif., insurance broker received a sentence of 180 days in county jail and five years probation after being sentenced in Van Nuys District Superior Court.

Shahin Sean Pelaseyed was sentenced to six months after pleading no contest to one felony count of theft following a California Department of Insurance (CDI) Investigation Bureau investigation, which alleges he diverted premiums from five trucking companies in search of liability and cargo insurance.

Van Nuys District Superior Court Judge Leslie Dunn convicted Pelaseyed on grand theft charges for allegedly holding on to approximately $20,000 in premiums due to commercial insurance carriers. Added terms of the sentencing are the surrender of Pelaseyed’s suspended fire and casualty broker-agent license to the CDI. Pelaseyed is also not allowed to ever receive employment in a fiduciary/trust capacity and was ordered to pay more than $10,000 in restitution.

This was not Pelaseyed’s first run in with officials. In December of 1997, he was convicted of one misdemeanor count of diversion of funds for having allegedly gathered money to deliver insurance which he did not provide. In that case, Pelaseyed received a sentence of 36 months of formal probation, no jail time, and was ordered to make full restitution. The latest conviction found Pelaseyed in violation of his probation terms.

In August of last year, CDI ordered the suspension of Pelaseyed’s license after he was charged with five felonies. Insurance Commissioner Harry W. Low is expected to summarily revoke Pelaseyed’s licensing rights in August of this year, after the expiration of his right to appeal.

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