Undercover Calif. Sting Operation Busts Claims Manager

California Department of Insurance (CDI) Fraud Investigators announced the arraignment of a claims manager on several charges resulting from an undercover investigation.

David Posner, 44, a claims manager for a Third Party Administrator company that handles automobile injury claims, was arraigned this week in Los Angeles. Posner was arrested Friday, Sept. 16, in Valencia on felony charges including, commercial bribery, theft of trade secrets, and extortion. Search warrants were executed at his residence in Santa Clarita and his office space at his employer in Pasadena. Posner was booked into the Los Angeles County Jail and bail was set at $220,000. The case is being prosecuted by the Los Angeles County District Attorney’s Office Auto Insurance Fraud Division.

According to investigators, an investigation began in July 2005 when an attorney came forward to the CDI Fraud Division with information about Posner allegedly offering to sell “inside” information from insurance companies and law enforcement. Posner offered to provide information regarding the attorney’s law office as it relates to alleged illegal acts that were known by the CDI Fraud Division and the California State Bar. Posner allegedly offered to provide confidential information he obtained from his employer and law enforcement to assist the attorney in avoiding criminal investigation or prosecution and requested $50,000 for the information.

During the course of his employment Posner was involved in several meetings with criminal investigators with the CDI Fraud Division and the California State Bar concerning an investigation of several attorneys. Posner was also in a position with his employer, The Questrel Companies, to negotiate automobile injury claims wherein the victim attorney represented the injured parties.

Investigators say that on Sept. 1, 2005, Posner met the victim attorney in Van Nuys, and provided a password protected CD-ROM and requested $50,000 for the password. Posner stated that the CD-ROM contained specific information regarding investigation of the attorney.

An undercover sting operation was set up on Sept. 16, 2005, in which undercover investigators provided the requested payment and Posner provided another CD-ROM with additional law enforcement information and the password to the victim attorney. Posner was immediately arrested by CDI Fraud Investigators after he received the cash payment. Management of The Questrel Companies cooperated fully with the CDI Fraud Division throughout this investigation.

If convicted on all counts Posner could face more than 10 years in prison.