Liability Risk Management & Insurance Services, Inc.
Outcome
Andre De Gazon, 56, owner of Liability Risk Management & Insurance Services, Inc. in Bellflower, California was arraigned in early 2026 on felony embezzlement and grand theft charges for accepting $105,816.42 in client premiums from June 2022 through October 2023 and failing to remit those funds to insurance carriers, leaving clients at risk of policy cancellation and in many cases forcing them to pay carriers directly.
Details
Liability Risk Management & Insurance Services, Inc. / Andre De Gazon — $105,816 Premium Diversion, Orange County (2022–2023)
Outcome: Andre De Gazon, 56, owner and operator of Liability Risk Management & Insurance Services, Inc. in Bellflower, California was arraigned on felony embezzlement and grand theft charges in early 2026, for accepting $105,816.42 in client insurance premiums from June 2022 through October 2023 and failing to remit those funds to the respective insurance carriers.
Liability Risk Management & Insurance Services, Inc., operated by Andre De Gazon in Bellflower, California (Orange County area), specialized in locating professional liability insurance policies for clients — a business model that involved collecting premium payments from clients and remitting them to insurance carriers on the clients' behalf. As a licensed managing general agent, De Gazon had a legal and fiduciary obligation to hold client premium payments in trust and promptly remit them to carriers.
Between June 2022 and October 2023, De Gazon accepted $105,816.42 in premiums from clients but failed to remit the full amounts owed to the insurance carriers providing the policies. The diversion of these funds put the clients — professional businesses relying on liability coverage — at risk of policy cancellation or lapse without their knowledge. When the carriers did not receive the premiums, many clients were required to pay the carriers directly in order to maintain their coverage, effectively paying twice for insurance they should have secured with the premiums they had already given to De Gazon.
The California Department of Insurance investigation led to felony charges filed by the Orange County District Attorney's Office. The case reflects the common pattern of premium diversion by individual insurance agents who collect client funds in a fiduciary capacity and divert them for personal use, typically over an extended period before the losses are discovered through carrier audits or client complaints.
Primary Source: California DOI Press Release — Orange County Insurance Agent Arraigned for Grand Theft and Embezzlement
How Crucible Prevents This
Crucible's instinct-observer hook would detect client premium receipts without corresponding carrier remittance transactions in the agency management system. The pre-tool-check hook would enforce documented carrier remittance confirmation before any client account could be marked as current. The quality-gate would flag accounts receivable aging reports showing growing carrier premium balances without corresponding payment records.
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