Eight Arrested in California for Defrauding Insurance Carriers

The California Department of Insurance (CDI) Fraud Division conducted an arrest warrant sweep that resulted in the arrests of eight suspects in Tulare, Fresno and San Luis Obispo counties.

The suspects in these cases are being prosecuted by the District Attorney’s offices in Fresno and Tulare counties. The cases involve fraudulent claims made against both automobile and homeowners’/renters’ insurance policies.

Aaron Scott Timmons, 31, of Commerce, was arrested on May 12 on a Tulare County Superior Court warrant charging him with three felony counts of insurance fraud. His bail is set at $300,000. Timmons was also arrested on a Fresno County Superior Court warrant charging him with lewd and indecent acts upon a child. This warrant orders that Timmons be held without bail.

Timmons was arrested in Medford, Oreg., where he was under an alias.The charges against him stem from his alleged involvement in a series of burglaries that took place in the city of Visalia. The burglaries were staged to make fraudulent insurance claims to Pacific Specialty, State Farm and Farmers Insurance Companies, CDI said. If convicted, Timmons faces a maximum of seven years in prison and/or a $50,000 fine.

Julie Belinda Dennis, 36, of Porterville, surrendered on May 11 on a Tulare County Superior Court warrant charging her with two felony counts of insurance fraud. Her bail is set at $50,000.

Dennis’ charges stem from her alleged involvement in a series of burglaries which took place in the city of Porterville. The burglaries were staged to make fraudulent insurance claims to Pacific Specialty, State Farm and Farmers Insurance Companies, CDI said. If convicted, Dennis faces a maximum of six years in prison and/or a $50,000 fine.

Elizabeth Sue Maxwell, 23, of Paso Robles, was arrested on May 12 on a Tulare County Superior Court warrant charging her with one misdemeanor count of insurance fraud. Her bail is set at $10,000. Maxwell was also arrested on a Kings County Superior Court warrant charging her with violation of probation on a conviction of possession of alcoholic beverages by a minor. The bail on this warrant is also set at $10,000. Maxwell was arrested in Paso Robles and booked into the Paso Robles Police Department. Her charge stems from her alleged participation in a burglary that took place in the city of Tulare. The charge alleges the burglary was staged to make fraudulent insurance claims to Pacific Specialty, State Farm and Farmers Insurance Companies. If convicted, Maxwell faces a maximum of one year in the county jail and/or a $50,000 fine.

Mark Alan Nelsen, 52, of Visalia, was arrested on May 12 on a Tulare County Superior Court warrant charging him with two felony counts of grand theft by fraud; one felony count of obtaining money, labor or property using false pretenses; one felony count of conspiracy to obtain money or property using false pretenses; one felony count of forgery; two felony counts of providing false or misleading statements to insurers that would affect a person’s ability to obtain any insurance policy; and one felony count of false impersonation of another in private or official capacity in acts imposing liability. The bail on this warrant is set at $50,000. Nelson was also arrested on a Tulare County Superior Court warrant charging him with violation of providing alcoholic beverages to a minor. He was arrested in Visalia and booked at the Tulare County Jail with $5,000 bail.

Nelson’s charges stem from his alleged participation in an “advance commission” scheme. In this scheme, he allegedly targeted elderly and disabled persons for sales of insurance policies. If the person did not or could not purchase the policy, he would then allegedly assume the person’s identity to purchase the insurance policy, which would be paid for by automatic deduction from a bank account.

Investigators said Nelsen sent a money order for the first month’s premium with each of these applications along with fictitious bank account information. Upon issuance of these policies, the carriers, Union National Life, American Amicable of Texas, and Conseco Life, would then send Nelsen a commission check for an amount which was usually equal to the total premiums for the first year of the policy. If convicted, Nelson faces a maximum of seven years ten months in prison and/or a $50,000 fine.

Nyenye King, 31, of Visalia, was arrested on May 12 on a Tulare County Superior Court warrant charging her with one felony count of insurance fraud. King was arrested in Visalia and
booked at the Tulare County Jail on $20,000 bail. Her charges stem from an insurance claim made to Danielson National Insurance Company for a vehicle collision in which King stated she was the driver. However, investigation reveals the actual driver at the time of collision was an individual excluded from coverage, CDI said. If convicted of the insurance fraud charges, King faces a maximum of five years in prison and/or a $50,000 fine.

Ivan Dillard, 37, of Visalia, was arrested on May 12 on a Tulare County Superior Court warrant charging him with one felony count of insurance fraud and three counts of having prior convictions for specified felonies. Dillard was arrested in Visalia and booked at the Tulare County Jail with $100,000 bail. His charges stem from statements he made in support of an insurance claim made to Danielson National Insurance Co. for a vehicle collision in which King stated he was the driver. However, investigation reveals the actual driver at the time of collision was an individual excluded from coverage, CDI said. If convicted, Dillard faces a maximum of 25 years in prison and/or a $50,000 fine.

Ricardo Ruvalcaba, 28, of Kingsburg, was arrested on May 12 on a Fresno County Superior Court warrant charging him with two felony counts of insurance fraud, one count of destroying or secreting insured property for the purpose of making a false insurance claim, and one count of making a false police report. Ruvalcaba was arrested in Kingsberg and booked at the Fresno County Jail on $11,000 bail. His charges stem from his alleged involvement in a “staged vehicle theft” whereby he hid his vehicle at a friend’s home and then reported it stolen. According to CDI, Ruvalcaba subsequently made an insurance claim against his carrier, the United States Automobile Association. At the time he reported the theft, Ruvalcaba was unaware that his vehicle was equipped with a LOJACK transponder which allowed the Kingsburg Police Department to quickly locate the reportedly stolen vehicle. According to investigators, both he and his friend later admitted the vehicle theft was staged for the purpose of making a false insurance claim. If convicted, Ruvalcaba faces a maximum of five years in prison and/or a $50,000 fine.

Patrick K. Chuman, 24, was arrested at his home on May 16 on a Fresno County Superior Court warrant charging him with three felony counts of insurance fraud. He was booked into the Fresno County Jail on $15,000 bail. Chuman’s charges stem from an insurance claim against Allied Insurance made for the reported theft of a vehicle. The vehicle was involved in a hit and run collision shortly before it was reported stolen. Chuman was later identified as being the driver of the vehicle at the time it was involved in the collision. If convicted, he faces a maximum of five years in prison and/or a $50,000 fine.

The CDI’s Fraud Division was assisted during the warrant sweep by investigators from the Tulare and Kings County District Attorney’s offices, the Fresno Police Department, the Naval Criminal Investigative Service and the California Highway Patrol. The Special Investigative Units from Union National Life, American Amicable of Texas, Farmers and State Farm Insurance also assisted in the investigations.