Laguna Beach insurance agent arraigned for pilfering premiums from small businesses

A Southern California insurance agent was arraigned earlier this month for allegedly stealing more than $62,000 in insurance premiums from at least 10 small business owners in California, according to the California Department of Insurance (CDI).

Erin Lee McCarroll, who operated Erin McCarroll Insurance Services in Laguna Beach, California, is now facing 27 felony counts, including grand theft and forgery. The investigation into the agent’s activities was prompted by several consumer complaints CDI received.

The CDI alleges that from June 2017-November 2019, McCarroll collected premiums but never secured the coverages the clients requested. Instead, the money was used for personal expenses.

To cover up the scheme, McCarroll crafted and issued fake certificates of insurance, which the victims then used as proof of insurance while bidding on contracts.

The victims of the scheme were contractors and other small business owners, who were unaware that McCarroll had not placed the coverages they had requested. The policies in question included workers’ comp coverage, which businesses are required to carry by California law. Some victims also requested commercial general liability policies, which were never placed.

The CDI noted that without these policies, McCarroll’s victims were exposed to possible uncovered claims and could have potentially lost hundreds of thousands of dollars should a loss have occurred.

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