On January 21st, 2022

Former Palmdale Insurance Agent Sentenced in Theft and Embezzlement Scheme

“Insurance agents such as this give the honest, hardworking professionals in this industry a bad rap and that simply isn’t fair.  That said, there is still a large number of unscrupulous individuals who scheme to walk away with the money of others and put them in the way of financial harm.   That’s why there is a need for California Department of Insurance investigators and detectives.” – CSLEA President Alan Barcelona

LOS ANGELES – On January 19, 2022, former insurance agent Blanca Lidia Guzman, 40, of Palmdale, was sentenced in Los Angeles County Superior Court on one felony count of grand theft after pleading no contest for defrauding consumers. Guzman stole more than $16,000 in premiums from the insurance company she worked for and her clients while leaving many of those clients without insurance coverage. She was sentenced to pay restitution and to complete 10 days of community labor.

An investigation by the California Department of Insurance began after complaints from Guzman’s employer were received.

The investigation revealed that Guzman entered false information into the company’s database to avoid submitting client funds. She submitted fabricated proof of insurance documents to escrow companies in order to close the sale or refinancing of the victims’ homes and then cashed the checks from the escrow companies that were issued for insurance. Guzman also forged her clients’ e-signatures on insurance policy applications to place other policies at a much later date with another company without her clients’ knowledge. Her actions left several clients without insurance coverage and resulted in a theft of at least $16,128. 

The Department of Insurance revoked Guzman’s license on February 1, 2021. The Los Angeles County District Attorney’s Office prosecuted this case.

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