LOS ANGELES — Two former insurance agents have been arrested on charges of collecting over $300,000 in unearned commissions. Their 15 charges include insurance fraud, identity theft, money laundering, grand theft, and forgery.
37-year-old Ali Kakande and 35-year-old Sulaiman Lutale were identified as the two former agents who now face the possibility of prison sentences.
It started in 2012 when the duo became licensed agents and proceeded to collect $138,000 in unearned commissions for the next two years.
The CDI (California Department of Insurance) explained, “After they were no longer able to successfully submit new businesses under their own licenses, they continued their scheme by using licenses from at least three other licensees to submit over 70 additional fraudulent applications and collect more than $90,000 in unearned commissions.”
The investigation revealed that, as a general rule, premium payments were not paid by applicants but from accounts owned by the pair, and also from accounts opened by other people complicit in the scheme.
Kakande has a bail of $470,000 and Lutale has a bond of $370,000.