Tustin insurance agent arrested on suspicion of defrauding $100,000 from clients

A Tustin insurance agent was arrested Thursday, Dec. 8, on suspicion of defrauding four victims out of $100,000 to secure investments that did not exist.

Gautam Arora, 38, was charged with 11 felony counts of securities violations and money laundering, the California Department of Insurance said on Thursday.

Arora worked as a licensed insurance agent between 2018 and 2019, recruiting others to work for him in a multi-level marketing agency. During that period, he obtained clients’ private financial information through an alleged “financial review”, then solicited them to invest in investments they were led to believe were legitimate.

In reality, Arora misrepresented his financial status, which included overdrawn bank accounts, over $68,000 in credit card debt, and filed civil suits and orders to pay unpaid debts, according to an investigation carried out by the California Department of Insurance.

The victims’ funds were deposited into his personal account, using those investments for personal expenses, casino trips, and to return prior investor funds.

Prior to his arrest, Arora entered into a settlement agreement with the California Department of Insurance to pay $57,000 in restitution to victims of his alleged fictitious investments. When he failed to pay any portion of the restitution, his broker-dealer license was terminated  in December 2019

Last month, an insurance industry ban was imposed on Arora and he also was ordered to reimburse the department $81,000 for investigative costs.

Arora was arrested in Tustin and his bail was set at $100,500. The case is prosecuted by the Orange County District Attorney’s Office though information on a court date was not immediately available.

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