Riverside Man To Face Trial in Alleged $4 Million Insurance Scam

James William Riley of Murrieta, Calif., has been prohibited from working in the insurance industry in any manner pending the outcome of his trial on multiple counts of grand theft, money laundering and commercial bribery, the California Department of Insurance announced. He is scheduled to be arraigned March 15, 2010 in the Riverside County Hall of Justice.

Ryan Jay Robinson of Temecula, Calif., also was charged with multiple counts of grand theft and commercial bribery after a CDI investigation alleged he and Riley stole approximately $4 million from the Pechanga Resort & Casino in an insurance scam. Both were arrested Feb. 2.

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 The money that Riley gave Robinson was allegedly moved through multiple accounts before being withdrawn in the form of cashier’s checks.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 Riverside County District Attorney’s Office is prosecuting the case. Riley was freed Feb. 9 on $1,002,500 bail, while Robinson is still in jail with a bail amount set at $1.25 million. Riley’s license will be revoked if he is found guilty.

Source: CDI