FRESNO— Formerly licensed insurance agent Danny Raymond Armenta, 48, of Clovis, was arraigned ON May 10, 2021 in Fresno Superior Court on multiple felony counts of embezzlement, grand theft and diversion of fiduciary funds after allegedly using his position as an insurance agent to steal consumers’ premium payments and use them for personal expenses.
“Clients trusted this former agent to do the right thing with their money by applying it to premiums and due to the former agent’s alleged actions, those clients could have been left uninsured,” said California Statewide Law Enforcement Association (CSLEA) President Alan Barcelona. “California Department of Insurance investigators follow up on complaints to their department and if there is criminal activity, they will submit for arrest warrants and work with local district attorneys to prosecute.”
After receiving a complaint from Armenta’s employer, the California Department of Insurance launched an investigation which revealed while working as an insurance agent, Armenta collected funds from consumers to pay insurance premiums. Investigators allege Armenta deposited the consumers’ payments into a fiduciary account, transferred the funds into a business operating account, and then eventually moved $17,797 into his personal banking account. He allegedly used the stolen funds to buy college sports tickets, pay bills, and cover other personal expenses.
When Armenta’s employer attempted to withdraw the consumers’ fiduciary funds to cover the consumers’ insurance premiums, they received notices of insufficient funds. Despite Armenta’s actions, the insurance company covered the consumers’ premium payments so they were never left uninsured.
Although Armenta’s license expired on September 30, 2020, the Department revoked his license on March 1, 2021, and prohibited him from further participation in the insurance industry. Armenta is scheduled to return to court on June 23, 2021. The case is being prosecuted by the Fresno County District Attorney’s Office.