Investigation into wildfire mailers ends in public adjuster being banned from industry
The adjuster’s company had submitted claims without the consent or knowledge of homeowners.
A public adjuster in California has surrendered his professional licenses and has been banned from working in the insurance industry in any capacity for eight years for a host of unsavory behavior, including misleading wildfire victims and filing bogus claims, according to the state’s insurance department.
Argen Youssefi and employees of his company, California Recovery Group (CRG), were soliciting business at consumers’ homes and sending mass mailers in an effort to file insurance claims in relation to wildfire damages.
The mailers would direct wildfire victims to visit a website or call a hotline to get smoke settlement information. Company representatives would tell policyholders the program was funded by the state, and that no claim would be filed against their home insurance. Unlicensed representatives of CRG would also canvass neighborhoods in an effort to drum up business.
Further, homeowners were told that since wildfires were declared catastrophes, there would be no impact on their home insurance policy.
None of these statements made by CRG or its representatives were true, according to the California Department of Insurance.
Seeing the plot through to its logical conclusion, CRG was found to have submitted claims without the consent or knowledge of homeowners. The company listed itself as a payee on some of these claims.
“When disaster strikes it can be confusing for homeowners to know where to turn to and this company took advantage of that difficult situation in violation of California’s consumer protection laws,” said California Insurance Commissioner Ricardo Lara said in a release. “Thanks to the hard work of my department’s investigators and legal team, this company has been stopped. We are committed to protecting consumers following a wildfire or other disaster and ensuring they have the information and tools they need.”
The state’s insurance department noted there could be other victims in this case and the investigation into CRG is ongoing.
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