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California DOI fraud investigators arrested 11 people suspected of insurance fraud, concluding a two-year investigation. The chief suspect, a former Farmers Insurance Group insurance agent, is Gurdip “Gary” Singh Ladhir of Vacaville.
Ladhir had been the focus of an extensive investigation into the illegal “backdating” of automobile insurance applications since 1995. Backdating is the practice of issuing auto insurance coverage to an individual who had previously been involved in a car accident but at the time of the accident was not insured. DOI fraud investigators learned through Farmers Insurance Company representatives that an informant claimed Ladhir was backdating policies. In addition, Farmers Insurance employees found a large number of claims were filed within a few days of the policy inception date. They also found that Ladhir wrote the policies. In May of 1998, investigators obtained search warrants for Ladhir’s business locations in San Jose and Sacramento, as well as his home in Vacaville.
Investigators found that Ladhir backdated Farmers’ automobile insurance applications for at least 15 people. Those people had either been involved in automobile accidents or filed auto theft claims. Ladhir fraudulently made it appear as if the applicants had purchased the insurance coverage immediately before the accident.
As a result of Ladhir’s illegal activities, Farmers paid out approximately $150,000 in claims payments that would not otherwise have been paid since the people did not have insurance at the time of the event.
Others arrested included Purandeep Singh of Daly City, Jagmohan Singh, Balwinder Singh and Amarjit Dhillon of San Jose, Talwin Singh of Union City, Gurpal Singh Sidhu of Stockton, Kashmir Singh of Elk Grove, Kulwinder Kooner of Santa Clara, Bajinder Singh and Indejit Singh of Sacramento, Haranjan Thandi and Kulwinder Sangha of Modesto, Balwinder Singh of Ceres, Satvinder Singh of Selma and Makhan Singh. All of those arrested face prison and fines.
The investigation was conducted by the US Postal Inspection Service, the National Insurance Crime Bureau and the Contra Costa County DA’s Office.
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