The California Department of Insurance announced that five individuals, including former insurance agents, have been charged in a large-scale insurance fraud scheme involving misrepresented life insurance policies that resulted in fraudulent commissions totaling over $1.4 million.

Daniel Jon Carpenter, 62, of Morgan Hill, was arraigned on felony charges of insurance fraud, grand theft, and identity theft. Carpenter, a former insurance agent, allegedly orchestrated the fraudulent scheme alongside four co-defendants.

– – Natorae Marie Wettstein, 56, of Rancho Mirage, was arraigned on felony charges of insurance fraud and grand theft.
– – Blake John Carpenter, 27, of San Jose, the son of Daniel Jon Carpenter, was arraigned on felony charges of insurance fraud and grand theft.
– – Noah Maxwell Kuh, 26, of San Jose, was arraigned on a felony charge of insurance fraud.
– – Alejandro Carlos, 25, of Gilroy, remains a fugitive at large and is wanted on felony charges of insurance fraud and grand theft.

The Department of Insurance launched its investigation after receiving a complaint from a consumer alleging forgery and insurance fraud linked to life insurance policies sold by Daniel Carpenter.

The investigation revealed that Carpenter, in conjunction with Wettstein, Blake Carpenter, Carlos, and Kuh, misrepresented life insurance policy terms to California consumers while falsifying agent information on policy applications submitted to multiple insurance companies. This deceptive scheme allowed them to collect unearned commissions from four insurance carriers between 2017 and 2023.

In total, the defendants fraudulently obtained over $1.4 million in commissions by manipulating over $2 million in insurance premiums from 28 California consumers. The California Department of Insurance has successfully assisted in recovering over $2 million for the affected victims.

Carpenter, Wettstein, Blake Carpenter, and Kuh are scheduled to return to court on April 25, 2025. Anyone with information on Carlos’ whereabouts is asked to contact the Department at 707-751-2000. The Santa Clara County District Attorney’s Office is prosecuting the case.

According to Santa Clara County Superior Court records one client, Alex Lowry, sued Carpenter and Wettstein in 2021, alleging Carpenter forged his signature to purchase two $7.5 million life insurance policies, with Wettstein listed as the agent due to Carpenter’s lack of authorization.

Wettstein claimed Lowry was repaid $190,000 in premiums and knowingly held the policies, while Carpenter denied the allegations but offered to settle. Lowry dropped the case in August 2024 for unclear reasons.