Casino Broker Barred Pending Trial for Alleged $4 Million Insurance Scam

California Insurance Commissioner Steve Poizner barred an insurance broker from working in the insurance industry while he awaits trial for his alleged role in a $4 million insurance scam and theft from the Pechanga Resort & Casino.

James William Riley, of Murrieta, will face arraignment March 15 in Riverside County for multiple counts of grand theft, money laundering and commercial bribery. Riley allegedly conspired with Ryan Jay Robinson, of Temecula, to fraudulently disguise the millions as insurance fees and premiums. Robinson, then the casino's chief financial officer, allegedly authorized the bogus transactions and received more than $100,000 in kickbacks, according to the California Department of Insurance.

Riley served as insurance broker for a majority of the insurance for the Pechanga Tribe, according to a statement from the Riverside County District Attorney's office. The indictment states that in 2006 and 2007, Riley took advantage of conditions in the insurance market to misrepresent the amounts of insurance premiums.

The casino and the Pechanga Development Corp. filed an insurance complaint in June 2007 alleging a $6 million discrepancy in the amount of insurance premiums paid to Riley's firm, Riley, Garrison & Associates of Murrieta. The department's investigation determined that Riley moved the money to Robinson through multiple accounts before being withdrawn in the form of cashier's checks.

"This licensing action means the public is protected and those people accused of these types of crimes cannot sell policies or even work in an agency or brokerage," Poizner said in a statement. Riley's insurance license will be revoked if he is found guilty.

Riley, Garrison & Associates has since changed to another entity, JRH Insurance Services, and Riley is not involved with the current operation, said principal James Henson, a former Riley, Garrison & Associates vice president.

A cached version of the Riley, Garrison & Associates Web site reads, "James W. Riley, president and founder of Riley, Garrison & Associates Inc., has earned his reputation by protecting his clients' valuable assets and helping them avoid costly risks associated with improper/insufficient insurance coverage."

Riley was freed Feb. 9 on $1 million bail. Robinson remains in jail with a bail amount set at $1.3 million, according to the insurance department.

(By Sean P. Carr, Washington Correspondent: [email protected])