Agent Convicted of Stealing from Policyholders

California Insurance Commissioner Steve Poizner announced the conviction of insurance broker Angelina Granillo, 42, of Anaheim, for two counts of grand theft.

Granillo was sentenced to five years summary probation, ordered to serve 180 days in county jail or perform 120 days of community labor, and to pay fines, penalties and restitution up to $80,000.

According to CDI investigators, from May 2004 to February 2005, Granillo, owner of Angelina Granillo Insurance Services Inc., with office locations in Bellflower, East Los Angeles, and Anaheim, accepted premium payments of at least $4,292 for the purpose of securing homeowners insurance policies.

The investigation determined that while in the process of closing escrow, one victim requested that the escrow company obtain her homeowners coverage from Granillo. The escrow company then submitted the payment directly to Granillo, who provided a bogus Certificate of Insurance. When the victim failed to receive a renewal notice for her insurance, she contacted the insurance company listed on the Certificate of Insurance and was informed that they had no record of ever receiving an application or premiums on her behalf and never issued a policy. This victim was exposed to a potential loss for over a year due to the Granillo's failure to provide coverage.

Another victim provided premium payments totaling $1,802 payable to Granillo for a homeowner's policy. A few months after receiving the premiums, Granillo placed coverage with the California FAIR Plan, with a premium amount of only $249, nearly $1,600 less than the premiums Granillo collected from the victim. Granillo pocketed the difference and exposed the homeowner to a potential loss during the time he was not covered. This victim became aware of the problem when he was notified by his lender that his coverage with the FAIR Plan did not provide the liability coverage required by the lender. Both victims filed complaints with CDI. CDI promptly launched an investigation following receipt of the complaints.

Prosecutors working along side CDI obtained Granillo's bank records for the period of January 2005 to March 2008. These bank records revealed that in addition to the above victims who filed complaints with CDI, Granillo collected premiums from at least 17 other consumers' and failed to place coverage or provide refunds.

Currently, the Los Angeles City Attorney's Office and CDI's Investigation Division are working jointly to finalize the total restitution amount, which the court has ordered Granillo to pay. It is anticipated the restitution amount will be between $60,000 and $80,000.