SoCal residents providing legal representation without license arrested by task force
News: 2024 Press Release
LOS ANGELES — Three Southern California residents were arrested today after a joint investigation with the California Department of Insurance and the Los Angeles County District Attorney’s Office found one of the defendants allegedly posed as lawyer and the others as legal associates to file false insurance claims including bodily injury claims resulting from automobile collisions and property damage claims resulting from a wildfire event. The alleged fraud resulted in the ring collecting over $75,000.
The Department of Insurance is the state’s leader in preventing and stopping insurance fraud by investigating complaints involving those handling insurance claims or selling insurance to ensure they are acting in the best interest of consumers. The joint investigation began after a complaint alleged Pedram Sharokhi, 43, of Porter Ranch, also known as Peter Shah and Peter Sharokhi, was practicing law associated with personal injury claims without a proper license. Sharokhi also filed several property damage/smoke and ash claims on behalf the claimants, after the Saddleridge Fire.
The joint investigation found Sharokhi, who is not a licensed California attorney, was acting as a practicing attorney and on behalf of actual licensed attorneys without their knowledge. Using various legal entities Sharokhi, his wife, Shabnam Rahbar Vafaee, 37, of Porter Ranch, and associate Jimmy Swinder, 40, of Reseda, conspired together to commit multiple crimes, including insurance fraud, grand theft, identity theft, forgery, money laundering and unlawful practice of law to obtain insurance proceeds for personal gain. Neither Vafaee or Swinder are licensed attorneys. Swinder’s law license was suspended August 10, 2019, and is he not eligible to practice law in California. The National Insurance Crime Bureau also assisted with the investigation.
Sharokhi and his associates submitted bodily injury claims resulting from automobile collisions and property damage claims resulting from a wildfire event to multiple insurance companies through various legal entities. Sharokhi misrepresented himself as an attorney to his clients and the insurance companies by advertising, through business cards and office signage, which claimed they could provide legal services.
They submitted claims and demand packages for the claimants and then negotiated for the claims and submitted documents in support including letters of representation, demand packages, medical reports, medical invoices, and smoke cleaning estimates. The investigation discovered that many of the submitted documents were either falsified or had forged signatures. Sharokhi received settlement checks and deposited them into bank accounts that were accessible to him. Sharokhi and his associates illegally collected $75,460.
To orchestrate their scheme, Sharokhi and his associates employed licensed attorneys under the disguise that these hired attorneys only made court appearances or worked on drafts. The hired attorneys were under the impression that another licensed attorney handled the claims and was the attorney of record. Sharokhi and his associates then used that licensed attorney’s information to communicate, negotiate and settle claims. The licensed attorneys were unaware that Shah or his associates were using their identities without their consent.
The Los Angeles County District Attorney’s Office is prosecuting this case.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
