Two Californians Arrested for Insurance Fraud

Califiornia residents James William Riley of Murrieta and Ryan Jay Robinson of Temecula have been arrested on multiple counts of grand theft and commercial bribery after a California Department of Insurance (CDI) investigation alleged the duo stole approximately $4 million from the Pechanga Resort & Casino in an insurance scam, CDI reported. Riley was also charged with money laundering.

Riley is an insurance broker for Riley, Garrison & Associates and Robinson is a former chief financial officer for the casino. In June 2007, CDI received a complaint from the casino and the Pechanga Development Corp. alleging that there was a discrepancy of approximately $6 million in the amount of insurance premiums paid to Riley, Garrison & Associates for insurance coverage and the actual cost of the premiums.

The CDI investigation alleges that Riley fraudulently disguised the funds as fees and premiums. Robinson allegedly authorized the insurance transactions and received more than $100,000 in kickbacks from Riley. The money that Riley gave Robinson was allegedly moved through multiple accounts before being withdrawn in the form of cashier’s checks.

The defendants are schedule to be arraigned Feb. 18 at the Riverside County Hall of Justice. The Riverside County District Attorney’s Office is prosecuting the case. A decision on Riley’s insurance broker’s license is pending.

Source: CDI