Artesia Insurance Broker Arrested on Grand Theft Charges

Insurance broker Lisa Christine Franklin of Artesia, Calif., who was already out on bail for grand theft and insurance fraud, has been arrested on one felony count of grand theft and one count of diverting insurance premiums, the California Department of Insurance reported. Franklin faces a maximum of four years in prison if convicted and bail has been set at $45,000.

According to CDI investigators, Franklin, as the owner of Skylight Insurance Agency in Los Angeles, collected premiums for an automobile insurance policy from Sept. 2009 to Dec. 2009. The victims had jointly purchased a vehicle in September, paid an initial deposit to Franklin and subsequent monthly payments totaling $437. Franklin allegedly provided the victims with a bogus evidence of insurance document to make it appear coverage was effective in Sept. 2009.

On Dec. 2, 2009, the victims’ automobile was involved in an accident and it was determined that the repairs far exceeded the value of the automobile, CDI said. The estimated loss was approximately $7,500. The victims discovered the alleged scam after the insurance company identified on the bogus evidence of insurance notified them that there was no policy in effect. CDI investigators allege that Franklin failed to submit the application and premium deposit to the insurer until Dec. 7, 2009, at which time Franklin sent a $139 premium deposit. The policy was issued with an effective date of Dec. 4, 2009. The insurer denied the claim since there was no coverage at the time of the accident. CDI received a complaint from the victims and started its investigation.

Lisa Franklin and her husband, Robert Franklin, were arrested in late 2008 on multiple counts of grand theft and diversion of insurance premiums. In addition, Lisa Franklin was charged with one count of filing a fraudulent insurance claim. This earlier case is being prosecuted by the Los Angeles County District Attorney’s Office. The Los Angeles County District Attorney’s Office is prosecuting the new case, as well.

Administrative action against Lisa Franklin’s insurance licenses is pending. Robert Franklin’s insurance license was revoked in 2004 after he was convicted and sentenced for grand theft of premium.

Source: CDI