Calif. Insurance Broker Arrested for Elder Theft

December 9, 2010

The California Department of Insurance announced that Paul Edward Broussard of Inglewood, Calif., has been arrested on one felony count of theft from an elder, PC 368 (d). Broussard was booked at the Century Sheriff’s Station, his bail set at $50,000. If convicted, Broussard would be facing a maximum of 5 years in prison.

According to CDI Investigators in late 2008, Broussard convinced and assisted an elderly victim to obtain a reverse mortgage in order to obtain money to repair her home. In April 2009 Broussard convinced the victim to give him $25,000 for an investment promising her a 10 percent return in six months. Broussard never returned the $25,000 nor did he pay the 10 percent interest as he had promised. Additionally in April 2009, Broussard again convinced the elderly victim to purchase a life insurance policy from him which required a $60,000 premium. The victim’s premium check was payable to the insurance company. After receiving the policy in August 2009, the victim contacted Broussard and requested a hardship withdrawal of $15,000 from her life insurance policy.

Broussard submitted a written request to the life insurance company, but instead of asking for $15,000.00 to be returned, he asked for $20,000, CDI said. Upon receiving that check from the insurance company, the victim contacted Broussard and stated she only wanted $15,000. Broussard told her to send a $5,000 check made payable to him and he would return it to the life insurance company. Broussard then sent his check in the amount of $5,000 to the insurance company, however, his check was returned due to insufficient funds. This check was never made good by Broussard. During the same timeframe of April and May 2009, Broussard obtained a personal loan, totaling $7,000.00 from the victim and promised to pay her back. Broussard only paid her $4,500.00 leaving an outstanding balance of $2,500.00. The total funds Broussard fraudulently obtained from the victim and failed to return is $32,500.

This case was investigated by the Los Angeles Investigation Division of CDI and is being prosecuted by the Elder Abuse Unit of the Los Angeles County District Attorney’s Office. Broussard’s arraignment date is pending. Administrative action against Broussard’s insurance license is also pending.

Source: CDI

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