A 64-year-old Brea man made his first appearance in court Monday for allegedly orchestrating a $1.4 million insurance scam.
Eric Lee was charged Thursday and arrested at his home Friday. His arraignment today was rescheduled until Oct. 24.
Lee is accused of signing up about a dozen customers from October 2009 to November 2010 for life insurance policies they could not afford and “fudging the paperwork” so they would qualify, according to Senior Deputy District Attorney Marc Labreche.
http://liarcatchers.com/insurance_fraud.html
Lee, who received up-front commissions, walked away with the money, making about $1.4 million before the policies lapsed because the beneficiaries could not make the payments, Labreche said.
Prosecutors call it an “advance commission scheme,” Labreche said.
Lee worked for FMC Financial Group, an agency for Mass Mutual, prosecutors said.
In many cases, insurance agents can sign up customers without proving income, Mass Mutual prohibited such policies, “so he needed a lie to get around that,” Labreche said.
Lee aroused suspicion when a large volume of the policies lapsed, Labreche said.
Lee could face up to 28 years and eight months in prison if he is convicted.
Lee is charged with 10 felony counts each of grand theft and insurance fraud with sentencing-enhancing allegations of loss of more than $100,000, aggravated white collar crime in excess of $500,000 and property damage exceeding $1.3 million.
