Local Insurance Agent Arrested for Leaving Client Uninsured During Debris Flow

Local Insurance Agent Arrested for Leaving Client Uninsured During Debris Flow title=
Local Insurance Agent Arrested for Leaving Client Uninsured During Debris Flow
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Source: California Department of Insurance

California Department of Insurance detectives today arrested insurance agent Mark Lynch, 40, on 13 felony counts of grand theft, embezzlement, and money laundering after allegedly collecting over $72,425 in insurance premium payments from five clients and leaving them uninsured including one client who was left uninsured during the Montecito mudslides in January 2018. 

While that client did not suffer damage in the devastating slides that killed 20 people, the agent allegedly pocketed premium payments from five clients and used those funds for his personal benefit. Three clients were Santa Barbara homeowners and two clients were small business owners left uninsured against potential liability claims.

The Department of Insurance launched an investigation after receiving complaints from Lynch’s clients. The alleged misappropriation of premium payments took place between January 2016 and January 2017. 

“Leaving homeowners without insurance during the Montecito Mudslides could have been devastating for these families and businesses,” said Insurance Commissioner Ricardo Lara. “The arrest of this agent should be a warning to anyone who puts consumers at risk to seek personal benefit. The Department of Insurance will continue to use every resource available to stop unscrupulous agents from preying on customers.” 

The Department of Insurance has filed an accusation against Lynch and is seeking to revoke his insurance license.

Lynch’s was booked into Santa Barbara County jail and his bail has been set at $100,000.  The Santa Barbara County District Attorney’s Office is prosecuting the case.

Click here for the full arrest photo.

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a-1573161214 Nov 07, 2019 01:13 PM
Local Insurance Agent Arrested for Leaving Client Uninsured During Debris Flow

The policy holders had to discover the issues and then report. Seems that would take a while. The dates cited are when he actually stole the money. More info, from noozhawk: ==========================================================================
"Lynch, who worked for Miramar Insurance Services, was charged with five counts of grand theft, five counts of embezzlement and three counts of money laundering, according to the criminal complaint filed in Santa Barbara County Superior Court.

“Rather than depositing these fiduciary funds into a trust account and then remitting the net premium due to the insurance company (as required by law), Lynch converted the payments for his own personal use via his business checking account,” investigator Thomas Johnson wrote in a declaration for the case.

“As a result of Lynch’s actions, the victims were unknowingly uninsured and exposed to the danger of uninsured losses.”

Lynch allegedly wired the funds to a website where people can buy, sell and manage cryptocurrency accounts, and made purchases from companies such as Ralphs, 7-Eleven, Amazon and Uber, according to the complaint.

andrewbaker77 Nov 08, 2019 09:03 AM
Local Insurance Agent Arrested for Leaving Client Uninsured During Debris Flow

This is the write up he created for Mantra. ahahahahahaahhaahahahh

"MLIA is an independent agency serving the greater Santa Barbara area. We work for you, not an insurance company. We will ensure that you have the right coverage, and if you suffer a loss we promise you will receive the fair, timely payment you deserve.

Mark Lynch, founder of MLIA, has been in the financial industry for almost a decade. After working for big banks and insurance companies, he realized that the customer was getting shortchanged and falling victim to corporate greed. Rather than work as a captive agent, Mark struck out on his own to embrace a business model focused on the customer. MLIA represents a carefully selected group of financially sound, reputable insurance companies. We will place your policy with the company offering the best coverage at the most competitive price"

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