Carlos Adolfo Sanchez was arraigned Wednesday on three felony charges after an investigation by the California Department of Insurance (CDI) Investigations Division.
Sanchez, 35, of Corona, is suspected of collecting premiums from a policy that he sold to an elderly victim, but pocketing the money himself instead of applying it to the cost of the policy. He was arrested Monday and booked into the Los Angeles County Jail, where bail was set at $90,000. The Los Angeles County District Attorney’s office Elder Abuse Section is prosecuting the case.
According to investigators, in March 2005, CDI received a copy of an anonymous letter addressed to Sanchez’s employer at the time, The Independent Order of Foresters (IOF). It detailed allegations of fraud against the victim. An ensuing four-month investigation conducted by CDI revealed that between June 2, 2004 and Nov. 1, 2004, Sanchez, while employed by IOF, allegedly collected $620.16 in insurance premium payments from an 81-year-old Anaheim woman. He allegedly deposited the money into his personal bank account.
Sanchez allegedly issued the victim a fraudulent Western-Southern Life Insurance (WSL) policy for which there was no actual coverage. The victim said that she had bought the $10,000 insurance policy to cover funeral expenses upon her death. She discovered the fraud when she contacted WSL in November, 2004 and was told that she had no policy.
After contacting Sanchez about the matter, the victim told investigators that Sanchez gave her back the money and begged her not to say anything. IOF officials said that Sanchez voluntarily resigned from the company in March, 2005. WSL officials stated that Sanchez was never appointed or employed by that company to sell its products.
During the CDI investigation, another possible victim was identified. In that case, Sanchez allegedly collected $2,000 and remitted only $136.56 to MetLife Insurance Company for a policy. Sanchez allegedly convinced the victim, a Los Angeles woman, to take out a $2,000 loan from her IOF account to purchase a life insurance policy in September 2004.
The woman contacted IOF in January, 2005. IOF looked into the matter and several days later received a $2,000 check from the woman to repay the loan. CDI Investigators believe that Sanchez repaid the money to the victim in return for her agreement not to cooperate with the investigation.
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