Annuity Agent Arrested, Charged with Fraud

A 33-year-old Moreno Valley annuity agent was arrested and charged with theft and money laundering in connection with the sale of 17 fraudulent annuity applications to five life insurance companies, authorities said.

Joshua Eugene Barnes was arrested at an Inland Empire Starbucks Coffee shop after California Insurance Department investigators swooped in and charged Barnes with submitting fraudulent applications with blank checks from a dozen people.

The Inland Empire is an area east of Los Angeles.

Barnes, who lists a business address in Rancho Cucamonga, Calif., was charged with two felony counts of grand theft and one felony count of money laundering, authorities said.

He was booked into the Riverside County Jail and bail was set at $82,000. He is scheduled to appear in court June 28, authorities said.

A message left with the Riverside County District Attorney’s office was not immediately returned.

“I have a zero-tolerance policy for agents who violate the law for personal gain," said California Insurance Commissioner Dave Jones in a news release. “We will take appropriate action against Barnes' license and any licensee that violates the law.”

State insurance records show Barnes’ life insurance license was still active as of Wednesday, but that it was set to expire at the end of the month.

His license suspension may be pending, which is why it still shows as active, a CID spokeswoman said.

Big Checks Bounce, Agent Disappears

Barnes is authorized to conduct business on behalf of Primerica Financial Services Insurance Marketing, records show.

Authorities allege Barnes submitted as many as 17 applications to five separate insurance companies.

Four companies realized the applications were fraudulent and declined to issue commission payments, but the fifth company issued a commission payment after Barnes had submitted two personal checks drawn on accounts belonging to other people.

One check was for $850,000 and the other was for $500,000, authorities said.

When the checks bounced, the insurance company demanded the return of the $81,900 in commissions it had already paid Barnes, who could not be found.

When investigators dug further into the alleged misdeeds, they found Barnes had been involved in as many as 15 other fraudulent applications involving as many as five insurers.

A department spokeswoman declined to name the insurance companies.

InsuranceNewsNet Senior Writer Cyril Tuohy has covered the financial services industry for more than 15 years. Cyril may be reached at [email protected].

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