CDI Updates Fraud Cases

Investigators with the California Department of Insurance (CDI) Investigation Division and the Fraud Division announced recent developments in these insurance fraud cases:

·ANAHEIM – Gary Stromme, 47, originally pled guilty last December to two felony counts of grand theft for reportedly collecting insurance premiums from Moose Lodges and failing to remit them to the insurance company. He also reportedly issued bogus insurance certificates to the lodges. Based upon his plea in Orange County Superior Court, Stromme was sentenced to serve 365 days in Orange County Jail, five years probation, and must pay full restitution. In addition, he is prohibited from obtaining employment with an insurance agency. Stromme was jailed on Jan. 30 and paid the full restitution amount of over $140,000.

·SACRAMENTO – Kevin Lamont Cash, 42, surrendered to authorities in Sacramento County on two counts of reported insurance fraud. Bail was set at $5,000. If convicted, Cash faces up to five years in state prison and/or a maximum fine of $50,000. The Sacramento County District Attorney’s Office is prosecuting the case.

On March 6, 2002, Cash was involved in a vehicle collision with Hartford insureds, which resulted in a total loss of Cash’s vehicle and found the Hartford insureds at fault. Cash submitted various receipts for stereo equipment, cab expenses, and miscellaneous items purchased. An investigation found the receipts were reportedly fraudulent.

Hartford paid Cash $3,300 for the value of his vehicle, but denied the rest of his claim.