A Canyon Country woman was one of nine people arrested last week in connection with what officials are calling an “elaborate” insurance fraud scheme, and 10 others are currently being sought by state police, authorities said Thursday.
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Elizabeth Louise Brown, 48, was arrested on April 7 and charged with multiple felonies, including insurance fraud and conspiracy for allegedly embezzling more than $276,000 from her employer, Explorer Insurance.
Another eight people were also arrested and charged in connection with the incident, and additional arrests are expected as the investigation continues.
A team of California Department of Insurance police officers raided a residence on the 26800 block of Madigan Drive in Santa Clarita in the early morning hours of April 7 as part of the investigation.
“I walked outside and there’s just a troop of (officers),” said a witness who asked to remain anonymous, adding that one officer was carrying a battering ram designed to break down doors.
The witness also recalled seeing a van pull up to the residence not long afterward, where several people from inside the house were escorted by police.
“They tucked them in the back and drove off,” he said.
Brown, a former claims adjuster with Explorer Insurance, allegedly embezzled from the company between January 2013 and September 2015 by adding friends and family members to claims.
This reportedly resulted in the insurer issuing fraudulent payments to Brown’s co-conspirators, according to Department of Insurance detectives.
“She would (allegedly) take your claim and add her family and friends, and then work the system so that they would get checks,” said Nancy Kincaid, a spokesperson for the California Department of Insurance, “even though they had nothing to do with it.”
Explorer Insurance first discovered evidence of the alleged crimes when they identified fraudulent checks issued in 87 claims assigned to Brown, officials said.
The company terminated Brown’s employment, and as required by law, reported the suspected crimes to the California Department of Insurance.
Brown is scheduled to appear at the San Fernando Superior Court on April 25 for a preliminary hearing, Kincaid said.
The case is being prosecuted by the Los Angeles County District Attorney’s Office Auto Insurance Fraud Division, and the investigation is ongoing.
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