Share
Riverside Man Convicted of Selling Bogus Surety Bonds

Riverside Man Convicted of Selling Bogus Surety Bonds

Family Assistance Program

RIVERSIDE –  A former Riverside agent was convicted of grand theft after selling bogus surety bonds the California Department of Insurance officials said. The crime targeted a large retailer and victimized clients of over $334 thousand in premiums.

Riverside resident, John Antonio Ruiz, 49 was convicted of 11 felony counts of grand theft after stealing client premiums for bogus surety bonds. This theft, exposed clients, including a major retailer to in some cases significant losses.
Business was conducted under the name of Cornerstone Surety and Insurance Agency. Ruiz sold and issued multiple performance and payment bonds to a general contractor, who California Department of Insurance officials said included the bonds with winning bids for numerous new store construction projects.  The retailer discovered that the surety bonds were bogus after attempting to satisfy liens filed by subcontractors.

Through investigation, the California Department of Insurance Investigation Division discovered that Ruiz did not have a valid agent license. Furthermore, the investigation revealed that the collected premiums were pocketed by Ruiz and were never remitted to insurance companies.

“Ruiz’s theft of more than a quarter of a million in premiums left the contractor and the retail client at great financial risk,” said Insurance Commissioner Dave Jones. “I have zero tolerance for dishonest agents or brokers that scam clients.”

Ruiz is scheduled to return to the Riverside Superior court to be sentenced on July 15th.

 

Follow 24/7 Headline on Facebook and Twitter!

 

For late-breaking news, follow 24/7 Headline News on our Los Angeles County Facebook group, Riverside County Facebook group, Coachella Valley News groupUS News group, Victor Valley/Inland Empire Facebook group. If you like what we are doing and want regular updates on your facebook stream like our Facebook Fan Page. You may also follow 24/7 Headline News on Twitter and Instagram! 

Staff Writer

This article was written by a staff member of the 24/7 Headline News Organization
Family Assistance Program