La Cañada Couple Accused Of $1 Million Life Insurance Scam

LA CAÑADA FLINTRIDGE, CA – A married couple from La Cañada Flintridge was accused of fraudulently collecting $1 million in life insurance benefits from a client of who died of a terminal illness.

Peter Muh Kim, 39, and his wife, Jin Kyung Kim, 35, were arrested Tuesday on suspicion of three felony counts each of grand theft and three felony counts each of insurance fraud. The duo are currently being held in lieu of $460,000 bail.

A California Department of Insurance investigation concluded that Peter Kim, who works as a licensed insurance agent, sold two policies to his wife and and then falsely listed her as a niece and beneficiary of one of his clients, the press release said. His wife, Jin, then purchased an additional life insurance policy for her husband's client and listed herself as the sister and beneficiary of the client, the state agency alleges.

The couple failed to inform insurance companies of the client's terminal illness diagnosis when they took out the policies, according to the press release.

"To those contemplating insurance fraud, let this be an example that this crime is a felony," said Insurance Commissioner Dave Jones. "Arresting the individuals behind this life insurance fraud scheme is another win for the department and our law enforcement partners. It should serve as a warning to any agent or broker breaking the law — we will aggressively investigate allegations of wrongdoing and work with our district attorney partners to prosecute scam artists and dishonest insurance producers."

Kim's client died in July 2014, and the insurance companies paid Jin Kim over $1 million in life insurance proceeds, the press release said. This case is being prosecuted by the Los Angeles County District Attorney's Office.

Photo courtesy of California Department of Insurance