Louisiana Business Owner Arrested for Insurance Fraud After Allegedly Selling Fraudulent Insurance Policies

Louisiana – Louisiana State Police revealed on September 21, 2022, that in June 2021, Troopers from the LSP Insurance Fraud/Auto Theft Unit New Orleans Field Office (LSP-IFAT-NFO) initiated an investigation into a Marrero firm selling fraudulent insurance policies. The Louisiana Department of Insurance (LDI) informed troopers that personnel from A&R Insurance in Marrero were continuing to write insurance policies that did not exist, despite being served with a Cease and Desist Order from LDI.
Troopers worked with many victims as part of the investigation to identify personnel of A&R Insurance who facilitated the issuing of the fraudulent policies. Troopers obtained a search warrant for the business as a result of their investigation.

On August 10, 2022, LSP-IFAT-NFO was helped by LDI and US Homeland Security Investigations (HSI) in carrying out the search warrant at A&R Insurance, which was now known as Garcia-Downs Multiservices. During the search, Troopers identified New Orleans inhabitant Erik Sandoval-Flores, 32, as the business manager and discovered various documentation corroborating the fraudulent activities and his involvement.

Sandoval-Flores was arrested as a consequence of the investigation for 19 counts of Forgery of Certificate Insurance. Furthermore, agents from the New Orleans HSI placed a detainer on Sandoval-Flores for immigration infractions.

This investigation is still underway, and the LSP-IFAT-NFO is looking into further crimes involving connected enterprises and insurance fraud offenses. The Louisiana State Police are requesting anyone who was a victim of this incident or has information about it to contact LSP-IFAT-NFO. Citizens can contact the LSP-IFAT at [email protected] to report suspected fraud.

“An unlicensed individual and agency soliciting, selling and servicing bogus insurance policies to Louisiana drivers is deplorable,” said Insurance Commissioner Jim Donelon. “Those 250 drivers believe they have legitimate insurance and need to take action immediately to rectify the situation.”

The Louisiana Department of Insurance seeks to increase competition in the state’s insurance market while also providing individuals and businesses with the information and resources they require to be informed insurance customers. As a regulator, the LDI enforces rules that provide a fair and stable marketplace and ensures that insurers follow the laws that protect policyholders. You can reach the LDI by dialing 1-800-259-5300 or by following this link to visit the LDI website.

An arrest is an indication that probable cause exists to believe the subject was involved in the offense alleged. A person is innocent until proven guilty beyond a reasonable doubt.