A former Costa Mesa resident, who was arrested in October on suspicion of collecting over $1.4 million from companies paying for bogus workers’ compensation insurance coverage, made her first court appearance in Orange County last week to face multiple felonies.
Karyl Lynn Reed, 57, was taken into custody in Seabrook, Texas and then brought before a judge in Santa Ana during an arraignment hearing on Oct. 27, California Department of Insurance officials said in a news release. She was accused of multiple felony counts of grand theft, embezzlement and forgery, according to court records.
Reed worked as an unlicensed insurance agent and ran two companies called Envoy Business Partners and Allenn Specialty Group, CDI officials said. Prosecutors accuse her of using those companies to produce fraudulent certificates of insurance to fool her victims and collect premiums for non-existent coverage from them.
“Ms. Reed’s alleged actions put these businesses owners’ livelihoods at risk by stealing their money and leaving them uninsured,” state Insurance Commissioner Ricardo Lara said.
One of the companies allegedly defrauded by Reed learned it was not covered when one of its employees became injured on the job, CDI officials said. Another learned that it had been uninsured and was given another company’s policy number.
The public defender representing Reed could not immediately be reached for comment. Reed is due back in court in December.
Source: Orange County Register
Be First to Comment