Formerly licensed insurance agent Gregory Magedman, 77, of Fullerton, California, appeared in court on one felony count of grand theft by embezzlement after allegedly failing to give an insurance payment to a carrier.
Records indicate there may be additional victims in the on-going investigation, and anyone who believes they may be a victim should contact the California Department of Insurance at (714) 712-7656.
The latest allegations come years after Magedman’s license was revoked by the CDI for a previous criminal charge.
In November 2011, the CDI issued a suspension order against Magedman due to a criminal investigation against him for embezzling consumer premium funds. In 2012, Magedman pleaded guilty to one count of grand theft in the Orange County Superior Court. The department immediately revoked his insurance license.
The current charges arise from a different investigation, which began in 2018 after the department received a complaint alleging Magedman acted as an insurance agent without a valid license.
The victim reportedly purchased a commercial liability policy for their truck and trailer from Magedman and provided Magedman with the downpayment and financed the policy with a premium finance company. The insurer’s managing general agent received the financed premium portion of the policy, but Magedman failed to submit the retail broker’s portion of the premium causing the policy to cancel.
The investigation found Magedman transacted insurance with no valid license and pocketed the unearned premium on the policy after it was cancelled for non-payment.
Topics California Fraud Agencies
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