Agent Sent to Prison for $1.5 Million Fraud to selling fake insurance
LOS ANGELES, Oct. 01, 2007
NRI Gurjeet Singh (aka George Singh), 57, of Van Nuys, Los Angeles,
was sentenced to serve one year and one day in federal prison after
pleading guilty to two counts of mail fraud in connection with an
insurance fraud scheme. Insurance Commissioner Steve Poizner today
announced that a former Los Angeles insurance broker surrendered
himself to authorities after being convicted of two fraud counts.
Investigators discovered that Singh, dba Monika Insurance Services
in West Hollywood, was hired to provide automobile liability coverage
for approximately 100 Prime Time Shuttle fleet vans providing shuttle
services to and from the Los Angeles, Burbank, John Wayne, Ontario
and Long Beach airports. His license was suspended in 2001.
When he was first hired, Singh purchased insurance liability coverage
from Lloyds of London, but this coverage expired after only four
months because Singh did not pay the premiums. From August 2002
to January 2005, Singh provided shuttle drivers with fraudulent
insurance identification cards supposedly from legitimate insurance
companies. Singh failed to remit more than $1.5 million in premium
payments from Prime Time Shuttle.
Singh also admitted to falsely representing to victims that they
were insured when, in fact, they were not. Singh also acknowledged
that as a result of his scheme, 11 victims have suffered medical
expenses and property damage resulting in at least $163,000 in unpaid
In addition to serving time in prison, Singh was ordered to pay
$169,979.79 in restitution. This case was prosecuted by the United
States Attorney's Office-Central District of California.
"This is an unfortunate example of how one person's refusal
to play by the rules can impact so many," said Insurance Commissioner
Steve Poizner. "This individual's action caused a company to
go bankrupt, and put many people at risk. Let me make it perfectly
clear: insurance fraud of any kind will not be tolerated in California."
The maximum sentence Judge Schiavelli can impose for each mail
fraud count is 20 years in federal prison but he was sentenced one
year and one day only.