A California insurance agent and his wife have been charged in connection with an insurance scam that allegedly netted them more than $1 million.
Peter Muh Kim, 39, and his wife, Jin Kyung Kim, 35, were arrested on three counts each of grand theft and three felony counts each of insurance fraud, according to the California Department of Insurance.
Authorities said that Peter Kim, a licensed insurance agent, sold two policies and falsely listed Jin Kim as a niece and beneficiary of the insured. Around the same time, Jin Kim allegedly purchased another life insurance policy for the same insured and falsely listed herself as the insured’s sister and beneficiary.
The Kims also allegedly neglected to disclose the insured’s terminal diagnosis to the insurance companies. When the insured died in July of 2014, the Kims received more than $1 million in life insurance proceeds.
“To those contemplating insurance fraud, let this be an example that this crime is a felony,” said California Insurance Commissioner Dave Jones. “Arresting the individuals behind this life insurance fraud scheme is another win for the department and our law enforcement partners. It should serve as a warning to any agent or broker breaking the law – we will aggressively investigate allegations of wrongdoing and work with our district attorney partners to prosecute scam artists and dishonest insurance producers.”
The Kims were booked into jail. Bail was set at $460,000 each.
