Former California Agent Arraigned on Grand Theft and Embezzlement Charges

A former Bellflower agent faces felony counts for allegedly pocketing premiums, while industry experts debate the legality of AI-driven "price optimization."

By: AXL Media

Published: Feb 26, 2026, 4:47 AM EST

Source: Information for this report was sourced from the Insurance Journal

The Investigation into Premium Theft

The investigation was triggered by a consumer complaint after a managing general agent notified a brokerage that their premium payment had never been received. De Gazon, who owned Liability Risk Management & Insurance Services Inc., specialized in professional liability policies.

The Allegations: Between June 2022 and October 2023, the firm allegedly accepted $105,816 in premiums from victims but failed to forward the funds to carriers.

Impact on Victims: Clients were placed at risk of losing coverage and were often forced to pay carriers directly to maintain their policies, resulting in double payments.

Current Status: De Gazon was arrested on January 29 by fraud enforcement agents; the Orange County District Attorney’s Office is prosecuting the case.

Industry Analysis: The Debate Over "Price Optimization"