Former Insurance Agents Arrested for $300,000 Insurance Fraud

Former Insurance Agents Arrested for $300,000 Insurance Fraud

LOS ANGELES – Two former life insurance agents were arrested for filing fraudulent life insurance applications in order to collect unearned commissions California Department of insurance officials said.

Over 200 fraudulent applications were submitted with stolen or purchased personal information totaling approximately $300,000. Ali Kakande, 37, and Salaiman Lutale, 35, were arrested on multiple felony counts of insurance fraud, identity theft, money laundering, grand theft, and forgery. The pair is accused of falsifying life insurance applications in order to collect commissions.

Multiple agencies, including the California Department of Insurance (CDI), U.S. Immigration and Customs Investigation (HSI) and  Homeland Security Investigations (HSI) investigated the case. Through investigation, they learned that before the two became licensed agents they submitted approximately 70 fraudulent life insurance policy applications to various carriers under another licensee’s agent appointments. They were paid over $81,000 in unearned commissions. Both became agents in 2012, and continued to submit an additional 89 policy applications over a 2-year period. During the 2-year period, they collected over $138,000 in unearned commissions.

Eventually, Kakande and Lutale began using licenses from three other licensees to submit over 70 more applications due to their submissions under their own license being declined. During this time they pair collected around $90,000. The two obtained personal information, applicants were recruited by paying $50-$200 and promising that they would receive free life insurance policies. Other applicants were victims of identity theft and did not even know that they had life insurance policies under their name. Information submitted contained misrepresented or fabricated information. Some of this information is contained false occupations, income, net worth, beneficiary information, and forged signatures.

The investigation into the case also revealed that premium payments were generally not paid by the applicants, but from accounts owner by Kakande of Lutale. Some of the accounts were opened by others who assisted them in carrying out the scheme.

“Fraud schemes like the one uncovered in this case result in billions of dollars in losses every year in this country and cause incalculable heartache and financial harm to law-abiding consumers,” said Joseph Macias, special agent in charge for HSI Los Angeles. “HSI is committed to working with its law enforcement partners to pursue such cases aggressively – ensuring those who brazenly enrich themselves through fraud and identify theft are held accountable for their crimes.”

Kakande was booked into Orange County Central Jail by CDI Fraud Detectives and bail was set at $470,000. Lutale was booked into Los Angeles County Jail by CDI Fraud Detectives and Homeland Security Agents and bail was set at $370,000. The Los Angeles County District Attorney’s Office is prosecuting the case under the California Department of Insurance’s Life and Annuity Consumer Protection Program

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Image Sources:

  • Ali-Kakande: Photos provided by the California Department of Insurance