May 3, 2023 - ORANGE, Calif. — Formerly licensed insurance agent Phong Thanh Nguyen, 29, of Garden Grove, was charged today with two felony counts of grand theft and insurance fraud after allegedly pocketing more than $37,000 in undeserved commissions from two separate life insurance companies.

The Department of Insurance opened an investigation after receiving a complaint alleging Nguyen received commissions on policies with no intention of keeping those policies active. The investigation revealed Nguyen wrote nine policies in one month that lapsed prematurely once the commission was paid. Nguyen did not pay back any of the unearned commissions he received from this alleged scheme. Under California law, failure to pay back unearned advance commissions is insurance fraud and theft.

In total, Nguyen received $37,453 from the alleged advanced commission scheme. At this time, Nguyen is a fugitive and the Department urges anyone with information to contact us at 714-712-7600.

The Department urges consumers to check the license status of their agent or contact the Department of Insurance at 800-927-4357 if they suspect they may be a victim of insurance fraud. Nguyen’s license expired December 31, 2020.

This case is being prosecuted by the Orange County District Attorney’s Office.

Source: California Department of Insurance