Insurance Commissioner Dave Jones Announces Arrest Of Pasadena Broker - Agent For Embezzlement
Agent alleged to have embezzled approximately $49,000
Insurance Commissioner Dave Jones today announced that the Cleve V. Traughber, 74, of Pasadena, has been arrested on one felony count for violating Penal Code Section 504, Embezzlement. Traughber was booked at the Glendale City jail, his bail set at $20,000. If convicted he could face a maximum of three-years in state prison and restitution.
According to Investigators, in September 2011, The California Department of Insurance (CDI) received a complaint alleging Traughber, a CDI licensed insurance broker-agent, embezzled $49,039.76 paid by a client to secure annual Errors and Omissions insurance coverage. The complaint also alleged Traughber provided the client with a fraudulent Certificate of Liability Insurance purporting coverage for the period of October, 2010 through October, 2011.
An investigation was conducted by the Criminal Operations Point of Sale Unit (COPS) and it was determined that the allegations were valid. The case was immediately referred to the District Attorney's Office. CDI encourages businesses and the public to verify their insurance documents and policy information with their insurance company.
The arraignment of Traughber is pending. His insurance license expired on December 31, 2011. The Los Angeles County District Attorney is prosecuting this case. Additional victims should contact Supervising Criminal Investigator Robert Brockway at (714) 720-7652.