Fraud is becoming an increasing security issue for Americans and people around the world due to the widespread use of virtual technology for basic activities.  About three weeks ago, a woman who worked as an insurance agent in Roseville was convicted in San Joaquin County for stealing the personal identity information of policy holders to set up fraudulent annuity applications and get commissions on those policies.

According to California Department of Insurance news release, the 51-year-old Magaly Morales, who also used the alias Magaly Egas, pleaded guilty to forgery, identity theft, and aggravated white collar crime enhancement for losses of more than $100,000. She was sentenced on March 24 to three years and four mounts in state prison.

Morales worked as a licensed insurance agent for Great American Life Insurance. She was arrested in December 2014 on multiple felony counts for submitting 299 fraudulent annuity applications and collecting more than $230,000 in advanced commissions.

From 2009 to 2011, she submitted 299 fake annuity applications to companies using personal information taken from school district employees from 13 California countries, including Sacramento, El Dorado, Placer, Yolo, Solano, Calaveras, San Joaquin, and Shasta. The largest number of victims was in San Joaquin County.

Due to Morales’ illegal actions, the identity theft victims are not liable for paying any premiums on the fraudulent policies, authorities said.

As fraud statistics continue to skyrocket every year, conducting employee background checks has become a necessary security measure during hiring. It establishes safety and peace of mind for corporations and business owners because they can immediately eliminate applicants with a history of illegal activity. This can save them thousands of dollars in lost revenue and theft.

A  pre-employment criminal background check should be a component of every application process. Performing pre-employment criminal background checks can help you protect your business from opportunistic thieves acting under the form of eager job applicants. It may also limit an employer’s liability as it pertains to negligent hiring when they have demonstrated and can provide proof that they took measures to investigate job applicants thoroughly.

Michael Simmons
Managing Partner
Employment Background Solutions, LLC