Former insurance agent Eugene Shy-Ren Hsu, 31, of West Covina was arrested by California Department of Insurance (CDI) officers on December 11, 2013 and charged with four felonies, including grand theft, forgery, and identity theft. Hsu allegedly used another agent’s identity to obtain a credit card and purchase life insurance policies without consumers’ knowledge. The illegal activity resulted in thousands of dollars in commissions.
"My department regulates more than 325,000 licensed professional agents and brokers who work hard to safeguard sensitive client information," said Insurance Commissioner Dave Jones. "It is inconceivable that a former agent whose license was already revoked by my office would go to such lengths to game the system for his personal gain. I will not tolerate deceitful actions that smear the reputation of honest agents and brokers."
CDI investigators revealed that Hsu, owner and operator of NCP Insurance Center, allegedly stole the identity of an unsuspecting licensed California insurance agent who applied for a job with Hsu. Hsu allegedly stole the licensed agent's Department of Insurance identity in order to write several life insurance policies without the agent's knowledge.
Investigators determined that Hsu collected more than $16,000 in fraudulent commissions on life insurance policies. The people named on the life insurance applications had no idea a life insurance policy was purchased in their name.
In addition, the investigation determined that Hsu used the licensed agent's identity to obtain a credit card with GE Money Bank and charged close to $4,000 in insurance premium charges to keep his scheme going and continue collecting commissions.
The Department of Insurance is asking agents who responded to a job posting on Craigslist.org from Eugene Hsu with NCP Insurance or people who have purchased insurance from the suspect to check their credit report for unusual activity and confirm with their insurance company the validity of any policies.
"Insurance fraud investigations are often lengthy and complicated," said California Statewide Law Enforcement Association (CSLEA) President Alan Barcelona. "CDI investigators have proven they have what it takes and are committed to uncovering this type of crime and arresting those responsible."
Hsu is being prosecuted by the Los Angeles County District Attorney's office with bail set at $70,000 and faces a maximum of three years in prison if found guilty on all counts.