Avoiding Certificate of Insurance Fraud
Certificate of insurance fraud is prevented at the source by only accepting COIs submitted directly by licensed insurance agents and brokers rather than by the insured vendor. The risk is concrete. In a case covered in Risk Management Magazine (2022), Santa Clarita plumbing contractor Adan Deniz was indicted on 21 felony counts after allegedly falsifying 10 certificates of insurance, avoiding 52,269 dollars in premiums, and underreporting payroll by 426,750 dollars between July 2016 and July 2019 to procure work from clients and government agencies. Certificial's Chief Regulatory and Compliance Officer Richard Magrann-Wells outlines the structural safeguards that close that gap. Last updated: May 2026
Certificates of insurance can sometimes be used as a means to commit fraud. Take the case of Adan Deniz, a plumbing contractor in Santa Clarita, California, who currently under indictment for 21 felony counts of forgery, theft by false pretense and workers compensation insurance fraud. The contractor is accused of falsifying 10 certificates of insurance and avoiding $52,269 in insurance premiums. Between July 2016 and July 2019, Deniz was found to have underreported his company’s payroll by $426,750. It is alleged that he submitted fake certificates to his clients and even government agencies in order to procure work.
Read more on Risk Management Magazine>
C.svg)