An insurance agent has been convicted of insurance fraud and sentenced to 60 days, three years of probation and ordered to pay $20,000 in recompense. The California Department of Insurance says Kannai David Scantlen’s agent license is currently suspended. The department is looking to ultimately revoke his license.
An investigation conducted jointly by the California Department of Insurance Investigation Division and the Amador County Workers' Compensation Fraud Unit revealed that Scantlen, 41, received premiums from his business owner clients to purchase general liability and workers' compensation coverage. He, however, failed to forward the money to his clients’ insurers.
Scantlen provided six clients – mostly contractors- with falsified insurance certificates that showed they had valid coverage and misappropriated about $20,000 from them. The policy information on the certificates, though, was fabricated. The carriers listed on the certificates had confirmed that they had neither records of receiving premium payments nor records of coverage for the businesses involved.
"Scantlen put legitimate business owners at great financial risk when he stole their premium payments and left them without workers' compensation coverage," remarked Insurance Commissioner Dave Jones. "If an agent or broker provides you with an insurance certificate, it is important to follow up with the insurance company and to verify your coverage and make sure you receive an actual policy."
Scantlen was sentenced April 6, 2016. As of April 12, he has reimbursed $11,000 to his victims.
The Department of Insurance urged those consumers who had purchased insurance coverage from Scantlen between 2012 and 2015 to verify that they have an actual copy of a policy. Those affected may reach their carriers and verify coverage, then call the Department to report any concerns.
