ORANGE — Insurance agent Gautam Arora (38) was reportedly arrested on Thursday, December 8, 2022.
Arora was arrested on eleven felony counts of security violations and money laundering after the California Department of Insurance investigated and found that Arora allegedly defrauded four victims out of $100,000 for fake investments.
Gautam Arora was a licensed insurance agent from 2018 to 2019 and had individuals work for him in a multi-level marketing agency.
Arora was able to get personal financial information from his victims through a “financial review,” then allegedly tricked the victims into buying into fraudulent investments.
Authorities say that, instead of investing the money, Arora would deposit the victims’ funds into his personal account. He allegedly used this money for numerous personal expenses including casino trips, and to return prior investor funds.
Arora’s broker-dealer license was terminated by Financial Industry Regulatory Authority on December 18, 2019.
Arora allegedly made multiple misrepresentations regarding investments and failing to tell clients about poor financial status. These included: overdrawn bank accounts, over $68,000 in credit card debt, and filed civil suits and orders to pay unpaid debts. Arora’s victims were led to believe that their investments were real.
Arora was supposed to pay restitution to his victims, but failed to do so, authorities said.
This resulted in a suspension of his insurance licenses and licensing rights. Last month, Arora was ordered to reimburse the Department $81,000 for investigative costs. The Department also imposed an insurance industry ban against Arora.
Arora was arrested by the Tustin Police Department and booked into the Orange County Jail. His bail was set at $100,500.
This case is being prosecuted by the Major Fraud Unit of the Orange County District Attorney’s Office.