A former licensed public adjuster in San Clemente was convicted of two felony counts of embezzlement, grand theft, and forgery. This week he was sentenced to seven years in prison, with a restitution hearing scheduled for June 20, 2017. His fraud included cashing claims checks with counterfeit endorsement seals and eventually stealing a total of $400,000 from fire victims in Los Angeles.

An investigation was launched after the California Department of Insurance Investigation Division (CDIID) received several complaints from consumers. The evidence that CDIID gathered revealed that the adjuster had been doing business as a Statewide Claims Advisor and had personally cashed and deposited multiple claims checks with counterfeit endorsement seals issued by insurance companies to fire victims to repair damaged properties. Because they had already lost their home in a blaze, and then had the repair money stolen from them, the victims had suffered two losses. Although he refused to release funds to homeowners who needed the money to rebuild, on a few occasions he released funds to contractors. In one case, he hired an unlicensed contractor who performed substandard work that led to a second house fire. The CDIID is concerned that there are more families who have been victimized and are urging anyone who hired the adjuster to contact them. The former adjuster surrendered his license when he was arrested.