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RECIPE FOR FRAUD
The recipe requires a heavy dose of real live customers recruited as policy buyers, however in this particular scam it was not the customers who were taking the financial kick in the shorts. It was the insurance companies.
The two La Jolla, California, brokers Byron Frisch and Kristian Giordano, and the two San Diego attorneys, Kasra Sadr and Brenda Barrera, simply used the buyers to get $50 million in policies issued by the carriers. At no time did the insured parties pay any premiums — that’s what the two lawyers were for. The agents marketed the policies as “free,” and the actual premiums were funded by the attorneys. The applications were filled out with omitted information or falsification of the applicant’s net worth, income or source of premium payments. But it didn’t end there.
The next step was to sell the fraudulently obtained policies to investors in the secondary market. How many elderly people who were attracted to the word “free” were strolling around town with flashing neon signs that read, “Worth More Dead Than Alive” …? The mind boggles.
Meanwhile, back in San Diego, the Motions Hearing on the indictment will take place in September.