Insurance Non-Renewals Paused in LA County as Fraud Prevention Efforts Intensify

 

By Santa Clarita Star Staff

01/18/2025 at 3:00 PM

Los Angeles County officials, led by District Attorney Nathan Hochman and Insurance Commissioner Ricardo Lara, have launched a rapid response strike team to combat wildfire-related fraud and protect consumers following the devastating Palisades, Eaton, Hearst, and Sunset wildfires. The initiative includes an expanded insurance non-renewal moratorium, workshops for wildfire survivors, and prosecution of fraudulent contractors and adjusters to ensure swift justice and recovery.

 

LOS ANGELES, Calif. — "The question is not if, but when you will be prosecuted if you engage in any type of insurance fraud," LA County Nathan Hochman said at a joint press conference with California Insurance Commissioner Ricardo Lara on Friday, January 18, 2025. "Justice will be swift, and justice will be significant if you want to take advantage of people in their lowest moments, people who have suffered the tragedy of losing homes, having property destroyed, and are now seeking to recover from that destruction, from that tragedy, that they are relying on the state, on the Department of Insurance. They're going to rely on the federal government. They're going to rely on county resources and city resources. And for the people who want to rely on these resources, please do so. There is so many different avenues for you to access these resources. They are there for you. Please, please take advantage of them. But for the people, the criminals who think they can take advantage of the system for their own benefit, for their despicable desires, to go ahead and profit from this tragedy. Again, you are seeing a unified front that is going to come after you and throw the whole book at you if you want to engage in this type of insurance fraud."

 

New Consumer Protections

State Insurance Commissioner Ricardo Lara highlighted the devastating toll of wildfires and unveiled a robust response plan during a press conference. "This is my 112th wildfire as commissioner, and we are committed to standing with every Angeleno through this crisis," Lara said. "We cannot wait to protect consumers as they begin making tough financial decisions."

 

Lara announced an expanded mandatory moratorium on insurance non-renewals, covering Palisades, Eaton, Hearst, Lydia, Sunset, and Woodley, among other wildfire-affected areas. The moratorium, effective January 7, prevents insurers from canceling homeowners, renters, and business policies for at least a year. State Farm, California's largest insurer, has extended this moratorium to all Los Angeles County policies, impacting tens of thousands of residents.

 

"This pause provides much-needed breathing room for affected families," Lara said. "We are also urging all insurers to honor policies slated for non-renewal before the fires."

 

Fraud Prevention Strike Team

The Department of Insurance and the LA County DA's office announced a rapid response strike team to combat wildfire-related fraud. The team will prosecute fraudulent contractors and adjusters, educate survivors on their rights, and ensure licenses are verified. This initiative builds on California's investment of $550 million to fight insurance fraud since 2019, including $116 million in Los Angeles County alone.

"Disasters bring out the best in people, but unfortunately, they also bring out the worst," said Lara. "Our partnership ensures fraudsters will face swift justice."

 

Examples of past fraud cases included unlicensed contractors leaving homes unrepaired and property managers billing millions for cleanup services that were never performed.

 

Resources for Survivors

Lara emphasized the importance of wildfire survivors documenting damage, starting claims immediately, and avoiding unlicensed contractors. He announced extended service hours for the Department of Insurance and one-on-one support workshops:

• Santa Monica College: January 18-19
• Pasadena City College: January 25-26

 

Residents can make appointments by calling 1-800-927-4357 or visiting insurance.ca.gov.

 

"If you're under any duress or any stress, we don't want you to sign anything," Lara said. "Call our department, call our DA. We are working hand in hand to get these answers and provide you some guidance in real time."

 

 

A Call to Action

Hochman and Lara urged the public to report suspicious activity, verify contractor and adjuster licenses, and use the Department of Insurance hotline for guidance. "If you have the slightest inkling of fraud, call us," Lara said. "Our goal is simple: protect Californians and ensure they get the support they need."

 

Commissioner Lara concluded with a message in Spanish, reaffirming the state's commitment to helping non-English-speaking residents navigate the recovery process.
 

 

More Charges Made in LA County Fires

In the wake of Los Angeles County's devastating wildfires, nine individuals are facing serious criminal charges for alleged crimes committed during the state of emergency. District Attorney Nathan J. Hochman announced the charges, which range from felony arson and looting to impersonation of a firefighter.

 

"To anyone who believes they can use this disaster as a cover for criminal activity, let this be your warning: You will be caught, and you will be held accountable," Hochman declared. "The citizens of this county deserve safety and justice, especially in the wake of such unprecedented devastation."

 

Arson Charges Dominate Cases

Among those charged is Luis Felipe Gudino (27), accused of igniting a couch behind an apartment building in South Gate on January 13. The fire spread to a utility pole and the building's exterior before being extinguished. Gudino faces one count of felony arson during a state of emergency, with potential enhancements for causing great harm. He is being held on $350,000 bail and faces up to seven years in prison.

 

Similarly, Richard Alexander Peterson (36) is charged with setting fire to a Christmas tree in front of a motel, also in South Gate. Due to prior convictions, Peterson could face a third-strike sentence of 25 years to life. His bail is set at $1.35 million.

 

In Huntington Park, Omar Lopez (35) allegedly set fire to two trees, including a large one in an apartment courtyard. Lopez faces two counts of felony arson and up to eight years, eight months in prison. His bail is set at $350,000.

Other Criminal Activity

 

Manuel Rodriguez (34) is accused of starting a dumpster fire behind the Brentwood Branch Library, while Travis Glodt (34) allegedly set three separate fires in Hawthorne. Rodriguez faces up to seven years, eight months in prison, while Glodt's case has been transferred to mental health court.

In Compton, Leopoldo Reveles (49) allegedly used a blow torch to ignite trash near train tracks, causing additional damage to a fire hydrant. He faces three years, eight months in prison.

 

Keyshon Walker (22) was found in an evacuation zone with ammunition, burglary tools, and other suspicious items. He faces multiple charges, including unlawful possession of ammunition and interference at the scene of an emergency.

 

Joshua Love (29) is accused of attempting to burglarize an apartment complex in Santa Monica. His charges include looting, attempted burglary, and unauthorized entry of a closed disaster area.

 

Ivan Cedric Reed (34) faces charges for impersonating a firefighter in Malibu. Authorities allege that Reed, wearing a firefighter jacket and carrying a first responder's radio, entered an evacuation area and falsely identified himself as a firefighter.

 

These charges are in addition to charges brought against individuals accused of looting and arson on January 13, 2025.

 

Accountability in the Face of Disaster

DA Hochman wanted to send a message of the importance of upholding law and order during this unprecendented crisis. Investigations into the alleged crimes were conducted by various local police departments and the Los Angeles County Sheriff's Department.

 

The arraignments for these defendants are ongoing, with court dates scheduled through the end of the month. If convicted, the defendants could face sentences ranging from several years to life imprisonment.

 

For more information, visit insurance.ca.gov or call 1-800-927-4357.