A Fullerton man was charged on Monday, April 10, for his suspected role in acting as an insurance agent without a valid license and pocketing unearned premiums from cancelled policies.
Gregory Magedman, a formerly licensed insurance agent, was charged in Orange County Superior Court with one felony count of grand theft by embezzlement after he allegedly secured insurance for a consumer and failed to give the payment to the insurance company, the California Department of Insurance said in a news release. He is suspected of keeping the money from the payments for personal use and leaving the consumer uninsured.
In November 2011, Magedman, 77, was issued a suspension order by the Department of Insurance because of a criminal investigation. He pleaded guilty in 2012 to one count of grand theft and his insurance license was revoked by the state insurance agency.
The most recent embezzlement charge stems from a 2018 investigation into Magedman after the department received a complaint alleging he was acting as an insurance agent without a valid license.
A victim had purchased a commercial liability policy for their truck and trailer from Magedman, providing him with the down payment and financing the policy with a premium finance company, according to the Insurance Department. The insurance company’s managing general agent received the financed premium portion of the policy, but the policy was cancelled after Magedman failed to submit the retail broker’s portion of the premium — leaving the victim uninsured.
Magedman is suspected of embezzling the premium of the policy after it was cancelled for non-payment, all while acting without a license.
Consumers who suspect they are victims of insurance fraud should contact the Department of Insurance at 800-927-4357.
The Insurance Department also urges consumers to check the license status of their agent online.
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