Livermore insurance executive pleads guilty to insurance fraud charges

OAKLAND A former insurance executive pleaded guilty Friday to conspiring to commit insurance fraud through an insurance company he founded in Livermore resulting in more than million in losses and the collapse of two insurance companies officers declared Jasbir Thandi a -year-old resident of San Francisco was charged with two counts of conspiracy to commit insurance fraud after being indicted by a grand jury in according to a news release from the Department of Justice Northern District of California He was the fourth defendant to plead guilty in this incident Thandi and his co-conspirators scheme was far-reaching and had devastating financial consequences including the collapse of two insurance companies and millions in losses to hundreds of sufferers announced United States Attorney Craig H Missakian Together with our law enforcement partners we work tirelessly to ensure that individuals who commit insurance and other forms of fraud are held accountable and this affair is an fundamental example of our efforts Three co-defendants Sandeep Sahota Jaspreet Padda and Gunjan Aggarwal previously pleaded guilty to the same charges prosecutors disclosed Thandi faces up to five years in prison and a fine for each count Thandi was the founder of Global Century Insurance Brokers a Livermore-based insurance brokerage that helped manage insurance company Global Hawk Liability Retention Group prosecutors revealed Thandi conspired with others beginning around May to create fake financial records stating that Global Hawk had higher capital and reserves than they did They then submitted these records which included fake brokerage records and bank statements to the Vermont Department of Financial Regulation which was the company s insurance regulator Regulators discovered the fraud in and declared Global Hawk liquidated and insolvent prosecutors added At present s guilty plea reflects the FBI s commitment to holding accountable those who manipulate financial records and abuse positions of trust for personal gain By misrepresenting assets and misappropriating funds Thandi not only misled regulators but also defrauded his company s customers announced FBI Special Agent in Charge Sanjay Virmani The FBI and our partners will continue to investigate and bring to justice those who exploit consumers through corporate fraud Prosecutors further announced that Thandi used million of funds from Global Hawk for his own personal use including to purchase a motorcycle and a house He also used funds that are legally required to be retained by the company as insurance reserves to purchase and sell stocks prosecutors added In Thandi took out a million line of credit in Global Hawk s name The line of credit was later upped to million and it had not been approved by the company s board of directors prosecutors stated Thandi again applied for an unauthorized million line of credit under Global Hawk s name in Thandi also conspired to create false financial documents for a Houston General Insurance Exchange a Texas-based insurance company to falsely show that the company had millions of dollars in reserves and assets despite not having the level of reserves required by Texas law prosecutors commented These documents were submitted to the Texas Department of Insurance Related Articles San Jose Martial arts facilitator arrested on suspicion of possessing child sexual abuse materials Unethical or Shady Accusations fly in manslaughter development against San Leandro officer Trump administration seeks release of Epstein grand jury records but not Justice Department files deputies killed in explosion at Biscailuz Center in East LA Baby Phoenix fentanyl death New murder event for dad and his reputed dealer charged in other fatal child overdose Criminals who would use the U S mail to commit fraud should know that postal inspectors and our federal law enforcement partners remain committed to protecting the populace from financial crime reported Stephen M Sherwood inspector in charge of the U S Postal Inspection Arrangement San Francisco Division The circumstance was investigated by the Federal Bureau of Review and the U S Postal Inspection Amenity Thandi is right now out of custody on bail He is scheduled to next appear in court Aug for a status hearing on sentencing