News: 2011 Press Release
For Release: December 8, 2011
Media Calls Only: 916-492-3566
Commissioner Dave Jones Announces Sentencing Of Bakersfield Insurance Agent For Embezzlement
Agent bilked 43 policyholders out of premium payments; embezzled from Elderly
Insurance Commissioner Dave Jones today announced that Mahmoud Elkadi, 53, a licensed insurance agent, was sentenced on December 5, 2011 for violating Penal Code Section 506, Embezzlement. Elkadi entered a plea of No Contest in Kern County Superior Court. As part of a plea bargain with the Court, restitution in the amount of $3,238.53 was ordered to be paid in full. Elkadi was ordered to serve 104 days in the county jail and probation for three years.
On April 27, 2011, Elkadi was arrested and charged with 17 felony counts for violating Penal Code Section 470 (d), Forgery, one felony count of violating Penal Code Section 368(d), Theft from an Elderly person by a non-caretaker, one felony count of violating Penal Code Section 487(a), Grand Theft, and one felony count of violating Penal Code Section 506, Embezzlement.
"An insurance agent who defrauds policyholders - especially one who preys upon the elderly - will be brought to justice," said Commissioner Jones. "I am committed to protecting consumers from unscrupulous agents."
A joint investigation conducted by the California Department of Insurance (CDI), Investigation Division, and the Bakersfield Police Department found that between June 2009 and April 2010 Elkadi accepted more than $7,545.98 from 43 different Farmers Insurance Exchange clients to pay premiums for automobile policies. Investigators learned that Elkadi had misappropriated the premiums for his own personal use. The Investigation also found that Elkadi forged, falsely made, or altered personal checks from an elder or dependent adult with the intent to embezzle the premium payments for his own personal use.
On June 15, 2011, CDI filed an order to suspend Elkadi's license prohibiting him from conducting any type of business related to insurance, including collection of premiums. On November 22, 2011, CDI issued an immediate order revoking Elkadi's license.
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