Unlicensed Insurance Seller Accused of Defrauding More Than 1,000 Consumers
On June 22, 2026, investigators with the Utah Insurance Department’s Fraud Division concluded a 14-month investigation into a large-scale “ghost broker” scheme, resulting in the arrest of Carlos David Garcia Gonzalez in Liberty Hills, Texas.
According to investigators, between January 2023 and January 2026, Garcia operated an unlicensed insurance business that fraudulently obtained more than 1,120 auto insurance policies through three insurance carriers. Authorities allege he submitted false information online on behalf of primarily Hispanic consumers living in Utah, leading to approximately $832,000 in avoided insurance premiums.
Investigators say Garcia charged consumers more than $84,470 for securing the policies despite not being licensed to sell insurance.
“Garcia relied heavily on word-of-mouth referrals within the Hispanic community to market discounted auto insurance to individuals who otherwise struggled to obtain coverage,” said Fraud Division Director Armand Glick. “He used WhatsApp and Zelle to communicate with customers and collect payments. Because he was not a licensed insurance agent and used false information to obtain policies, consumers faced a significant risk that claims could be denied if they were involved in an accident.”
The Utah Insurance Department previously issued two consumer alerts warning residents about purchasing insurance from unverified agents through WhatsApp and other social media platforms.
Officials are urging anyone who may have purchased auto insurance from Garcia through WhatsApp or Zelle to contact their insurance provider immediately. Consumers should verify the information listed on their policies and make any necessary corrections to ensure their coverage remains valid.
The investigation was conducted with assistance from the Texas Department of Insurance and the Williamson County Sheriff’s Department Organized Crime Unit. Authorities arrested Garcia at his Texas residence and seized evidence connected to the case. He is expected to be extradited to Utah.
Garcia faces multiple felony charges, including two counts each of Pattern of Unlawful Activity, Communications Fraud, and Insurance Fraud, all second-degree felonies. He is also charged with third-degree felony Forgery and Identity Fraud.
Information for this article was provided by Utah Insurance Department. Views and claims expressed in this article are those of the source company and do not necessarily reflect the views of AgencyEquity.com. This article may have been edited with the help of AI.
