SEARCH WARRANT AND AFFIDAVIT

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					STATE OF CALIFORNIA - COUNTY OF KERN

            SEARCH WARRANT AND AFFIDAVIT


Summary: Albert Ricardo Prince, a licensed insurance broker/agent, is suspected of taking

money entrusted to him by individual clients and commercial clients, for the sole purpose of

paying the insurance premiums due for homeowner insurance policies and commercial liability

insurance policies and failing to place coverage. Albert R. Prince is suspected of knowingly

preparing and filing fraudulent Certificates of Liability Insurance and providing them to his

clients, governmental agencies, banking institutions and mortgage lenders, with the intention of

deceiving and defrauding the clients by representing that their liabilities or potential liabilities

will--be-eovered-bytheinsurancepolicy,when in factPrinc~ intentionally retained themQney__

given to him in his fiduciary capacity and used it for his own personal benefit. Albert R. Prince

is suspected of accepting money from commercial clients for the purchase of performance /

payment bonds that would protect the clients from unknown liabilities and defaults; and,

knowingly presented a policy, which mayor may not have been placed, with a non-admitted

surety and bogus shell company, with the full knowledge that the shell company had no intention

of accepting the promised liability.

Facts In Detail: : On July 13, 2006, the California Department of Insurance (CDI) received a

complaint from Lorna Brumfield, Attorney for Bakersfield Homeless Center (BHC),

alleging BHC had attempted to collect on aperformance bond (an insurance policy that is given

to protect the recipient against loss in case the terms of a contract are not fulfilled. The

surety/insurance company would then assume liability for nonperformance up to the penal

amount of the bond), which was issued by International Fidelity and Surety, Ltd.

(International). BHC determined that International was a non-admitted carrier in the State of

California and would not honor the bond.

        On July 18, 2006, I interviewed Lorna Brumfield, Attorney for Bakersfield Homeless

Center, in regards to the complaint. Brumfield told me that the homeless center had put a




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 construction job out for bid as required by the State of California and accepted the bid from a

 contractor by the name ofR.D. Byrd, General Contractor (Byrd). She continued to say that

 after the bid was accepted, Byrd was told he needed a performance bond for the project.

 Brumfield said Byrd supplied the homeless center with a performance bond in the amount of

 $463,699.00. The bond was issued by International and purchased from Albert Prince (Prince)

 dba Prince Insurance Agency (PIA).

        Brumfield said Byrd had started the project but after a few months ended up walking off

-thejob,-leavingthehemeles-s Genter in a mess. She said she was retained by the homeless center _

 after they were told by International they would not honor the bond. Brumfield said that she

 later found out that International was not an admitted carrier or authorized to write insurance in

 the State and had in fact issued a worthless bond.

        On August 25,2006, I spoke with Ruben Byrd ofR.D. Byrd Construction. Byrd said

 he bought the performance bond from insurance agent, Albert Prince, whose office was located

 on 1525 10th Street, Bakersfield, CA.

        Byrd said he went into Prince's office and inquired about purchasing a performance bond

 for a construction project he was working on. Byrd said he completed an Application and recalls

 paying Prince approximately $17,000.00 for the bond. Byrd said that Prince had a hard timc

 locating a company that would write his bond because Byrd had never had a bond issued before.

 Byrd said Prince finally found International to bond him. Byrd said he thought International

 mailed him a copy of the bond; however, could not remember for sure. Byrd added that the BHC

 should have a copy of the bond because, "after the project fell apart, the bonding company took

 care of everything"; however, unbeknownst to Byrd, International did not cover the liability to

 BHC.




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       In researching International, I located an Indictment filed by the United States Attorney

General's Office in August 2007. The Indictment named International, Mark Wolok and Surety

Marketing Sources, as defendants and principals of International. The Indictment alleged

fraudulent bonds were issued by International for Viatical settlements that cost investors over

$25 million dollars.

       During my investigation, I received/found ten additional umelated complaints/cases

which show a similar pattern of criminal activity involving fraudulent performance bonds, failure

-to-place eoveFageofGomm€Fcial liability insurance and homeowners      insurgnc~ aJJ.dfraudu.leIlt ..

Certificate's of Insurance. The complaints/cases are outlined below:

        On or about December 20, 2006, the California Department of Insurance (CDI) received

a complaint from Stephen D. Jones, a licensed General Contractor, alleging that on September

29,2004, Albert Prince dba Prince Insurance Agency took a premium of$999.00 for a

$1,000,000.00 commercia/liability insurance policy for his construction company but coverage

was never placed. Jones said he did not find out there was a problem with the policy until he

was sued by a homeowner in October 2006, for work done during the coverage period of the

insurance policy.

       On February 2, 2007, Jones told me that in 2004, he was working on ajob that required

he obtain a commercial liability insurance policy. Jones said he purchased the commercial

liability insurance policy from Prince for $999.00. Jones said he went to Prince's office located

at 1525 10th Street, Bakersfield, CA to purchase the policy. The policy period was from

10/05/04 to 10/05/05. Jones was given a Certificate of Liability Insurance showing a policy

number of 64312119081 and "Superior Ins." as the insurance carrier/surety. It is signed by

Albert Prince. Jones also commented Prince mailed a copy ofthe certificate to his bank, Mojave




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Desert Bank, for their records. Jones said he never called the carrier to confinn he had coverage

because he never had a reason to doubt whether or not he was covered.

       Jones continued to say that in August of 2006, he was sued by a homeowner for some

construction work his fonner corporation had done in 2004-2005. Jones said he consulted an

attorney and was told the liability from the lawsuit would be covered because his liability

insurance policy was in effect at the time of the loss. Jones said his attorney contacted Prince to

obtain his insurance carrier infonnation; however, Prince advised his attorney that the carrier had

deelined togiv€ Jonesapo-licyin 2004. Jones.- said he checked all of his creditcardstatements

and did not see any type of refund for his $999.00. Jones said he had assumed he was covered

because he had received the Certificate of Liability Insurance from Prince. Jones said he has

already spent over $10,000.00 in attorney fees to represent him in the lawsuit.

       On September 6, 2007, CDI received a complaint against Prince and International

Fidelity and Surety, Ltd., filed by Rem Relan of ReIan Mortgage. In his complaint, Relan

alleges that on July 20,2007, he purchased aperformance bond from Prince, for a public works

project he was completing for the County of Contra Costa. The bond was in the amount of

$816,651.00. Relan said he paid Prince $28,583.00 for the bond premium. Relan said the

perfonnance bond was issued by International Fidelity and Surety, Ltd.

       In his complaint, Relan said six weeks after purchasing the performance bond, he was

notified by Contra Costa County that International was not licensed in the State of California and

they were rejecting his bond. Relan said on August 24,2007, he notified Prince that the bond

was not accepted and requested a full refund of his premium. Relan said he contacted Prince

numerous times, attempting to have his premium refunded but did not get any results, so he filed

the complaint with CDI. Relan later reported to CDI that Prince had eventually refunded his

premmm.




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         On January 2, 2008, I met with Prince to discuss the perfonnance bond issued by

  International that he had sold Re1an. I asked Prince ifhe knew they were not admitted and he

  said yes but that it was a private project and he, "learned he should not have sent the bond to

  Contra Costa County but to the contractor." He explained that when he said "private project", he

  meant not a government project like Contra Costa County.

         When I questioned Prince about Relan's perfonnance bond, Prince admitted that he had

  previous problems with International, but he purchased the bond anyway. He continued to say

-one-timehe-had a-pf{)}}l~mwith an IntemationaLbond but he stilL tried to_placeiLPrinc~Jl,dded

  that he wanted to place it with an admitted carrier but International had already sent the bond and

  he thought, "they could try it and see if it would work", even though he knew they were not

  admitted. Contra Costa County did check into it and refused to accept the bond. Prince said his

  commission and broker fee from the bond was over $18,000.00.

         On April 16, 2008, I again met with Albert Prince at his office at 1525 10 th Street,

  Bakersfield, CA. I briefly explained to Prince that in 2004, Jones's had paid him $999.00 for a

  commercial liability insurance policy and that coverage had never been placed nor had the

  premium been refunded. Prince confinned he responded to Jones's attorney's letter stating that

  no coverage had been placed. I asked Prince why he had not refunded the premium and Prince

  said, "It must have been a mistake". I asked Prince why he issued a Certificate of Liability

  Insurance coverage and gave it to Jones ifhe knew coverage had not been bound. Prince

  explained that generally he does not issue certificates until the policy has been issued and he did

  not know that the carrier, Superior Insurance, had not bound coverage. I asked Prince where the

  policy number he had typed on the certificate came from and he said it was from the quote.

  Prince added that, "It must have been a mistake". I asked Prince ifhe knew it was illegal to




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produce and issue a fraudulent certificate of insurance before coverage was bound and he said

yes. I asked Prince to pull Jones's file so that I could review it.

       In reviewing Jones's file, there were numerous letters from Superior Insurance requesting

additional information on Jones's application. Each one ofthe letters specifically stated that

coverage has not been bound. The letters had been sent to Prince the day after he requested

coverage. One of the letters stated that they were denying coverage. Documents in the file show

that after Superior denied coverage, numerous other faxed requests for insurance quotes were

sentotltanddenialswere-reGeivoo. When asked-about thediscrepanc-y o£hi&Btatement~and_th~

file, Prince reiterated. "It must have been a mistake".

        On June 11,2008, I located a complaint and cross-complaint that was filed by the

County of Santa Cruz. The cross-complaint was filed on April 18, 2006 by the County of

Santa Cruz. In the complaint, the county alleged that a performance bond in the amount of

$1,937,053.00 had been given to them by Drexal Power for a public works project they had been

awarded. The complaint states that when Drexal was unable to fulfill their contract and walked

off the job, the county found out that the performance bond was fraudulent and the insurer,

International Fidelity and Surety, Ltd. was a non-admitted carrier and a bogus shell company

from the Island of Vanatu.

        On January 21, 2009, I spoke with Jason Heath, Assistant County Counsel for Santa

Cruz County. Heath said that when Drexal walked ofthe job, the county attempted to collect on

the performance bond from International, but discovered International was not an admitted

carrier and was in fact a bogus shell company. Heath told me that it was not until the county had

gone to the work site ofDrexal that it was discovered that Albert Prince was the agent who had

sold the performance bond to Drexal. Heath said documents found at the site showed Prince was

paid a commission of over $63,000.00 for the bond.




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         Heath said that as a result of the fraudulent perfonnance bond, the county has had to

 cover the liabilities of the project, including paying vendors, subcontractors and getting the

 project completed. Heath said the loss the county has suffered is well over $2,000,000.00.

         Heath provided me with a deposition that was taken of Prince, where Prince admitted

 knowing as far back as 2002, that International was not an admitted carrier; however, Prince

 denied he knew they were a bogus company.

         On or about March 17,2009, CDI received a complaint from Otto and Rosa Chacon,

... alleging-that in-August m2()()8, they-hadpurehased a homeowner's insurance policy from- -_.

 Albert Prince, dba Prince Insurance Agency but coverage was not placed. In his complaint,

 Chacon said that it was not until December 26, 2008, when they suffered a loss, that they

 discovered they were not insured.

           On March 20, 2009, I spoke with Otto Chacon and his wife, Rosa Chacon. Otto

 Chacon said in August of2008, they purchased a new home and their escrow company, Fidelity

 National Title, required that they obtain a homeowners insurance policy before their FHA loan

 could close and be funded. Otto Chacon said his real estate agent made the initial contact with

 Prince for the homeowner's insurance and was told everything would be handled by the escrow

 company including the initial payment of the premium. Prince mailed the escrow company a

 Certificate of Insurance (proof of coverage) so their loan would fund; however, they never

 received a copy of the policy. Otto Chacon said he thought the premium was $580.00 for the

 year.

         Rosa Chacon said that on December 28, 2008, someone stole some trees from their home

 and she called Prince to file a claim. Rosa Chacon said when she first called no one could locate

 a policy. A few days later she was able to speak with Prince on the telephone; however, Prince

 convinced them not to file a claim telling the Chacon's that because they did not have a very big




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 loss and their deductible was $1,000.00, it would not be worth risking their insurance premium

 being increased. Rosa Chacon said they decided not to file the claim because they trusted what

 Prince had told them.

        Otto Chacon said they forgot about filing the claim until they received a cancellation

 notice from the insurance company, Fidelity National Insurance, saying they were cancelling

 their homeowners insurance. Otto Chacon said it was not until his wife called Fidelity to find

 out why their policy was being cancelled, that they discovered Prince had not placed coverage on

. August 17,2808;0«0 Bh-aeonsaidthey-weretoldthepo}iGywas purchased oll-January2, 2009,--- - .

 and because Prince's check for the premium had bounced the policy was cancelled.

        Otto Chacon said Prince called them and asked them to come to his office on 10th Street

 to take care ofthings. Otto Chacon said they were not sure what the dollar amount oftheir loss

 was so they told Prince they would accept $5,000.00. Otto Chacon said Prince acted like that

 was okay because he wanted to get the situation settled, but they later received a letter from

 Prince saying he felt it was unreasonable and only wanted to give them $1,200.00. Otto Chacon

 said they offered to settle for $2,500.00, but Prince refused.

        Otto Chacon said they needed homeowners insurance and bought a new policy on

 January 28,2009. Otto Chacon said on March 19,2009, they were notified by their mortgage

 company that because they had a lapse in coverage (from September 22,2008 to January 28,

 2009) the company added $715.52 to their mortgage for a forced placed policy. Otto Chacon

 supplied me with copies of Prince's bounced check along with a copy of the check for the

 premium that was sent to Prince by the escrow company in August 2008.

        On April 17, 2009, Prince responded to a request for an explanation from CDI's

 Consumer Services Bureau. Prince responded that it was an error that the coverage was never




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      placed in August 2008. Prince admitted to sending the escrow company an "Evidence of


      Insurance" and receiving and depositing the premium check.


              On March 26, 2009, I contacted Dawn Kane, Investigator for Fidelity Insurance


      Company. Kane confirmed that a quote was given and a policy issued for the Chacon's on


      January 2,2009 and not in August 2008. Kane said the policy cancelled for non-payment


      because the check Prince had sent bounced.


              Kane also commented that Prince had requested over 60 different quotes for

..	   homeowner~polieies    withinatwe year-peried;-how6v6r, enlya f~ poliGies.had-been

      purchased. I asked Kane if this was unusual and she said yes, it was a large amount of quotes for

      so few policies written. I asked Kane to send me a list ofthe quotes along with client contact

      information. In reviewing the list of quotes that Kane sent, I randomly made contact with some

      of the clients.

              On April 8, 2009, I met with Donnell Hobbs regarding the homeowner's insurance

      policy that he purchased on August 29,2008, from Albert Prince dba Prince Insurance Agency.

      Hobbs agreed to speak to me about the transaction.

               Hobbs stated that he and his wife personally know Prince through their church, where

      Prince is very active. Hobbs stated when they purchased their home they needed homeowner's

      insurance before their loan would fund and escrow closed. Hobbs said because they knew Prince

      from the church, his wife insisted they purchase their insurance through him. Hobbs continued

      to say that everything was handled through his escrow company. Hobbs said Prince sent his

      escrow company the proof of insurance and his loan closed. He believes the escrow company

      paid Prince the premium. I asked Hobbs ifhe had a copy of his policy and he retrieved it and

      allowed me to look at it. The policy was issued by Fidelity on August 29, 2008.




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       On the same day, I contacted Kane to verify the Hobbs coverage. Kane told me a policy

was issued on August 29, 2008 with no down payment. Kane said no premium payment was

received and the policy was cancelled. About one month later Fidelity received a check from

Prince for the premium and the policy was re-instated; however, Prince's check bounced and the

policy was again cancelled. Kane said on October 29, 2008, a check for the premium payment

was received from Hobbs's mortgage company and the policy was again re-instated.

        I contacted Golden Empire Mortgage, Inc. who was listed as mortgagee on Hobbs's

-insurIDlcepeliey, I spokewith Vinnie-inCustomerSelVice. Vinnie told me that the Hobbs'

purchase was a new home purchase and before the FHA loan could close or fund, the Hobbs

needed proof of insurance. Vinnie said according to her records Stewart Title mailed Prince a

check for the full premium, $955.00, on August 29, 2008.

       On April 9, 2009, I spoke with Veronica Dominguez on the telephone. I explained to

Dominguez that Fidelity National Insurance Company had advised me that a quote was

requested by Albert Prince on December 15,2008 for a homeowner's insurance policy.

Dominguez said that she had just purchased her home and before escrow could close she needed

to obtain an insurance policy. Dominguez said she was not sure if Fidelity was her carrier but

thought so. Dominguez continued to say that once Prince sent the escrow company the proof of

insurance, escrow closed and the escrow company paid Prince the insurance premium.

       Dominguez commented that in January of2009, she received a cancellation notice from

the insurance company for non-payment of premium. Dominguez said she called Prince to find

out what was going on and Prince told her he would take care of it and not to worry about it.

       On that same day, I contacted Kane to verify Dominguez's policy. Kane told me that the

policy was written on December 15,2008, with the same effective date. She said Fidelity's

payment history showed no down payment required and that the escrow company was to be




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 billed directly. The premium due was $535.00.     Kane said no premium was received by

 January 6, 2009 and the policy cancelled. Kane continued to say that on January 13,2009,

 Prince sent an electronic payment for the premium and it was reinstated.

        On April 20, 2009, CDI received a complaint from Mark Schroeder, Executive Director

 of Sierra Specialty Insurance Services, Inc., (S8IS), a surplus lines broker and General Agent

 (Authorized representative) for several out of state insurers. Schroeder alleged Prince had

 collected premiums from four commercial clients (Tumbleweed Cafe, INDAX Construction,

·fM-A£;-and Doug-Lmyp~inting)-for the purchase of commerciaUiability insurance policies:,

 however, Prince failed to remit the premiums resulting in the policies being cancelled..

        On May 22,2009, I met with Orchel Krier, Owner of the Tumbleweed Cafe, regarding

 the commercial liability insurance policy that he purchased from Albert Price dba Prince

 Insurance Agency in December 2008.

        Krier said that he has owned the Tumbleweed Cafe for approximately five years. He said

 the previous owner had purchased the cafe's commercial liability insurance policy from Prince

 and recommended Prince to him. Krier said that Prince was a well known business man in

 Bakersfield and was also a minister and so he felt comfortable about purchasing the policy with

 him.

        Krier continued to say that Prince has handled his insurance policy for the last five years

 and he has had no problems. Krier said that Prince just mails him a billing statement each year

 when the policy comes up for renewal and he pays Prince the full amount. Krier commented that

 this year his premium went up almost $2,000.00.

        I asked Krier if he remembered purchasing the policy in December of 2008 and he said

 yes. Krier said he always pays the entire amount of premium to Prince when his renewal comes

 up and thought he paid Prince about $8,000.00 in December 2008 to renew the policy. Krier said




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the only time he received a policy was over three years ago. Krier said that right after he paid

the renewal premium to Prince, he needed to get a Certificate ofLiability Insurance (proof of

coverage) to give to Chevron Valley Credit Union. He continued to explain that he recently had

installed an ATM machine that had a lot of cash inside of it and the credit union required proof

of liability insurance to cover the ATM and cash inside. Krier said he went to Prince's office on

 lOth Street in Bakersfield and Prince gave him the certificate.

          Krier gave me a copy of the Certificate of Liability Insurance that he had been given by

-Prince. -The eertiflCate shows the insurer is Northfleld-Insur-ance-Gompany and thepoliGy

number is NFl 6900001 , with an effective date of December 3, 2008 to December 3,2009. The

certificate had been issued to Chevron Valley Credit Union and has been signed by Albert

Prince.

          On the same day, I spoke with Schroeder to confirm the status of the Tumbleweed

Cafe's commercial liability insurance policy. Schroeder confirmed the policy had been cancelled

on February 20,2009, for non-payment. Schroeder said that the total amount of premium due

was $5,179.00. The policy number issued was WS024037. Schroeder said the policy number

listed on the certificate that was provided by Prince was invalid.

          On May 26, 2009, I contacted Northland Insurance Company and spoke with Jackie

in Underwriting. Jackie said Northfield Insurance Company is a subsidiary of Northland

Insurance. I gave Jackie the policy number from the certificate and she said that was not one of

Northfield's numbers. She said the policy number on the certificate, NF16900001, was not a

valid policy number.

          On May 27, 2009, I spoke to Andre Ramirez, owner of JMAS Custom Welding, on the

telephone regarding a commercial liability insurance policy he purchased from Albert Prince

dba Prince Insurance Agency, on or around September 23,2008.




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            I asked Ramirez ifhe recalled what the total amount of premium was when he purchased

    the policy from Prince and he said he thought it was around $1,400.00. Ramirez said he thought

    he gave Prince around $700.00 for the down payment in September 2008. Ramirez said he let

    the policy cancel after a few payments because he could no longer afford the coverage.

           Documents sent to me by SSIS show Prince requested a policy be bound on October 10,

    2008, with coverage effective from October 1, 2008 to October 1,2009. The total premium due

    was $1,000.00. The records show that three months later, on January 8, 2009, Prince made a

--$43-l-.~-5-]:}aymentte -SSISfor th~past due   premium; however~thecheck wasretumedinsJlfficient

    funds. The records show that after failed attempts to collect the premium, the policy was

    cancelled on February 20, 2009 for non-payment. On April 2, 2009, SSIS reported that an

    electronic payment of$500.00 was received from Prince to cover SSIS's costs.

           On May 28,2009, I met with Douglas Lilly, owner of Doug Lilly Painting and

    Construction, regarding the commercia/liability insurance policy he purchased from Albert

    Prince dba Prince Insurance Agency, on or around October 15,2008.

           Lilly said he is the owner of Doug Lilly Construction. Lilly said that it was strange that I

    called because a few months ago he did receive a cancellation notice for his cornmercialliability

    insurance policy but just thought it was because it expired. Lilly said he has never received

    anything from the insurer or Prince. He said that he gave Prince a down payment of $1,390.00

    on October 15,2008. Lilly gave me a copy ofthe receipt.

          I asked Lilly ifhe knew the name of the insurer and he said no. He said that last year he

    has purchased a policy from Prince and thinks he received a copy of it; however, he is not sure.

    Lilly said he agreed to pay the $1,390.00 as down payment and finance the rest with South Bay

    Acceptance Corp., a premium finance company. He said last year they sent him payment




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coupons but he never received any this year. Lilly said he did not call Prince because he had

been busy and thought maybe he had just purchased a six month policy.

      I asked Lilly if Prince had ever given him any type of Certificate ofLiability Insurance

and he said yes. Lilly went into his house and brought me a copy of the certificate. In reviewing

the certificate, the certificate was issued on October 15,2008 and was signed by Prince. The

liability section shows Maxum Indemnity Insurance Company as his liability insurance

carrier. The policy number shown on the liability portion is "10010988", with effective date of

October 14,2008 to October 14,2009.

       I spoke with Schroeder to confirm the status of Lilly's liability insurance policy.

Schroeder confirmed the policy had been cancelled on February 20, 2009, for non-payment.

Schroeder said that the total amount ofpremium due was $2,786.00 with a down payment of

$1,390.00 and the remaining balance to be financed by South Bay Acceptance, a premium

finance company. Schroeder commented that although the policy had cancelled, SSIS has

continued to send Prince the bills. Schroeder said on April 20, 2009, SSIS received a $500.00

payment from Prince and on May 22, 2009, a payment of $33.19 was received from Prince to

cover their costs.

      On the same day, I called Maxum Indemnity Insurance at 1-678-597-4500 and spoke to

Donna, a customer service agent. I told Donna I wanted to verify a policy and certificate of

coverage and gave her the policy number listed on the Lilly's certificate. Donna said the policy

number was invalid.

      On June 10, 2009, I spoke with Ismael Inda (Milo) owner of INDAX Construction, in

regards to the commercial liability insurance policy he purchased from Albert Prince dba Prince

Insurance Agency in September 2008. I told Inda that the documents I had indicated he received




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a quote in September 2008; however, the policy reflected a coverage period from October 27,

2008 to October 27,2009.

       Inda said he recalled giving Prince approximately $2,200.00 to $2,400.00 for the down

payment of the policy and then made payments on the balance. Inda commented that he made a

few payments; however, because of a slow economy he let the policy cancel. Inda said he sent

the initial down payment to Prince and the subsequent payments went to PFS, a premium finance

company. Inda said that this was just his annual renewal policy, not a new policy. Inda said he

could-not-reeaHifhe ever rec-eived any actual policies but advised-rne tQ-checkwith--       . ---­

Construction Business Services (CBS) who handles all of his administration stuff.

       On the same day I spoke with Joanie at CBS regarding INDAX's commercial liability

insurance policy. Joanie pulled the INDAX file and said she had received a large policy last

year covering October 27,2008 to October 27,2009. Joanie said it was emailed to her on

November 7,2008, from Prince's office. Joanie said that INDAX has had Prince Insurance for

the last few years; however, she did not receive a policy last year from them. I asked Joanie

what the policy number was on the policy and she said "BDG0036223-01" and the carrier was

Maxum Indemnity.

       I asked Joanie if she ever requested any Certificates of Liability Insurance from Prince

for construction jobs INDAX was bidding on and she said yes. Joanie explained when INDAX

needs proof of insurance, she would call Prince's office and tell them the name of the certificate

holder. Prince would then fax her one.

       In reviewing documents from SSIS, Prince requested a quote for a commercial liability

insurance policy on September 30, 2008; however, the policy was not bound until October 27,

2008 and was in effect until October 27,2009. The total premium due was $5,983.78. The

documents show that a down payment of$1,778.53 was due and the balance would be financed




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by PFS, a premium financing company. On February 9, 2009, the policy was cancelled for non­

payment. On June 9, 2009, SSIS advised me that they had received a payment of $966.39 from

Prince on the INDAX account.

       On June 11, 2009, I called Maxum Indemnity Insurance at 1-678-597-4500 and spoke

to Donna, a customer service agent. I told Donna I wanted to verify a policy and gave her the

policy number given to me by CBS. Donna told me that the policy number BDG0036223-01

used to belong to INDAX Corp.; however the policy was cancelled for non-payment.

       On July 6, 2009, Senior InsllranGe In-vestigatoF Candy-Hernandez went to Prince's-office - .

located at 1525 10th Street, Bakersfield, CA to confirm occupancy. Hernandez reported that

when she entered 1525 she observed an office with numerous desks. Hernandez also reported

that on the east side of the office there is an open door way that leads to an adjacent office. The

adjacent office had two desks/work stations and numerous boxes with what appeared to contain

files and documents belonging to Prince. Hernandez noted that there is a "For Rent" sign in the

window and the front door to the adjacent office displays the address of"1527".

       During my investigation I also discovered over twenty-seven civil complaints filed in the

Kern County Superior Court against Prince and his business entities. Ten of the actions are

directly related to the non-payment of commercial liability insurance premiums and/or failure to

place coverage. The total amount of premiums collected and retained by Prince on these cases

exceeds $100,000.00.

                                     APPLICABLE LAWS


          Pursuant to Section 487 (a) of the California Penal Code, Grand theft is theft

committed in any ofthe following cases: (a) When the money, labor, or real or personal

property taken is of a value exceeding four hundred dollars ($400), except as provided in




SEARCH WARRANT AND AFFIDAVIT                                                           Page 23
STATE OF CALIFORNIA - COUNTY OF KERN

              SEARCH WARRANT AND AFFIDAVIT

          I have completed over 500 hours of specialized training regarding the investigation of

workers' compensation and auto insurance fraud, organized crime and fraud rings, financial

crime investigation, tracing of illegal proceeds, life and disability insurance fraud, annunity sales,

bail bond licensing, insurance fraud, tax evasion, interview and interrogation. This training has

been sponsored by the California Department of Insurance- Fraud Division, Los Angeles County

District Attorney, California District Attorney Association, National Insurance Crime Bureau,

State Compensation Insurance Fund, California Department of Motor Vehicles, Fresno County

.District Attorney., Investigation Training Institllte,NHCAA Institu~ (orJIealth Care Fraud _

Pr,evention, Behavior Analysis Training Institute and California Bail Bond Association. I have

also developed premium fraud and applicant fraud training classes that I have presented to

auditors and claims examiners of State Compensation Insurance Fund, Kern County Risk

Management, International Association of Special Investigation Units, State Farm Insurance and

others.

          The State of California, Department of Insurance is the licensing and regulatory authority

of entities and individuals transacting insurance within the State of California. Insurance Code

Section 12921 mandates that the Insurance Commissioner enforce the Insurance Code and other

laws regulating the business of insurance.



II.       STATEMENT OF FACTS

          I have probable cause to believe that the crimes of Grand Theft, California Penal Code

§487(a), Embezzlement, California Penal Code §503, Forgery, California Penal Code §470(d)

and Identity Theft, California Penal Code §530 have been committed, based on the following

facts:




 SEARCH WARRANT AND AFFIDAVIT                                                           Page 7

				
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