Former Insurance Agents Charged for Allegedly Stealing Clients’ Insurance Premiums
- August 24, 2020
LOS ANGELES, Calif. — Former North Hills insurance agents Tani Arau, 33, and Gagik Babayan, 36, surrendered themselves today to the Los Angeles County Superior Court in Van Nuys after each was charged with two felony counts of grand theft and one misdemeanor count of petty theft for allegedly stealing nearly $5,500 in clients’ insurance premiums.
The Department of Insurance launched an investigation after multiple complaints were filed against Gizmo Insurance Agency which both Arau and Babayan operated under. The investigation revealed that between December 2018 and March 2019, Arau and Babayan allegedly collected a total of $5,466.52 in insurance premiums from three clients and, rather than remitting the payments to insurance companies, used the money for their own personal benefit. As a result of the thefts, the clients, two of which were small business owners, were left without insurance coverage and exposed to potential uninsured losses.
The case is being prosecuted by the Los Angeles County District Attorney’s Office. Bail was set at $40,000 each and they will be arraigned on September 30, 2020.
The Department revoked Arau’s license on July 23, 2020. Babayan’s license was previously revoked on November 13, 2013.