Former Agent Pleads Guilty to Fraud and Grand Theft

August 7, 2006

A San Diego insurance agent/broker who failed to send clients’ premium funds to insurance companies, causing the victims to lose more than $150,000, has pled guilty to one count of insurance fraud and one count of grand theft, according to the California Department of Insurance.

According to Insurance Commissioner John Garamendi, Oscar Serron, 52, a former insurance agent and broker from San Diego, entered his plea following a a probe by the CDI Investigation Division of consumer complaints received during 2003 alleging that Serron committed insurance fraud involving premium theft. Serron, who entered his plea July 31, was the owner of First Preferred Insurance Services located in Oceanside, Calif.

Documentary evidence seized from Serron’s office in 2004 revealed names of clients and policies that had not been placed after premiums were paid to Serron. Several individuals who purchased auto insurance policies from Serron were involved in car accidents and, without their knowledge, were not insured at the time of the accident. One victim who had purchased homeowner’s insurance suffered a major loss when her home was destroyed due to a fire.

All of the victims thought they were insured when in reality they had no coverage due to Serron’s failure to forward the premium funds to the insurance companies. The documented total loss suffered by the victims is more than $150,000.

Serron was arrested in Wisconsin in November 2005. The San Diego County District Attorney’s office is prosecuting the case. As part of the plea agreement, Serron agreed to have all his licenses revoked. Victim restitution is to be decided at a later date. Serron is currently at his residence in Wisconsin where he is awaiting his sentencing scheduled in San Diego on December 11.

Source: CDI

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