- A Texas man, Carlos Garcia, is accused of a "ghost broker" scheme.
- He allegedly defrauded three insurance companies, avoiding $832,000 in premiums.
- Garcia used fraudulent data to sell non-existent policies, earning $84,470 in payments.
SALT LAKE CITY — A Texas man is accused of running a "ghost broker" scheme in Utah.
"Carlos Garcia operated a large-scale 'ghost broker' scheme whereby he procured over 1,122 auto policies by submitting fraudulent data online to three insurance companies. This intentional misrepresentation resulted in approximately $832,000 of premium avoidance," according to charging documents.
Carlos David Garcia Gonzalez, 38, of Liberty Hills, Texas, was charged Monday in 3rd District Court with insurance fraud, communications fraud and two counts of engaging in a pattern of unlawful activity, second-degree felonies; and identity fraud and forgery, third-degree felonies.
"Garcia utilized digital payment platforms and telecommunications to devise a scheme to defraud victims by acting as a licensed insurance agent, charging and receiving approximately $84,470 in payments for faulty or non-existent auto insurance policies," the charges state.
Investigators say Garcia acted as a licensed insurance agent and defrauded three insurance companies.
"Garcia used the names, birth dates, and insurance policy numbers of individuals to make unauthorized policy changes over the phone with insurance companies," charging documents state. The fraudulent activity included "forging a name, fabricating a non-existent spouse and providing an incorrect driver's license number of another."
One insurance company "identified over 1,000 phone calls made by Carlos Garcia where he misrepresented himself as various policyholders to modify driver and payment data," the charges state.
Investigators confronted Garcia at his home in Texas, and he "admitted to acting as a 'ghost broker,' to lower premiums for non-English speaking clients, and receiving 'tips' or fees via Zelle," according to the charges. But despite a cease-and-desist order from an insurance company following the visit by investigators, "Garcia's phone number has continued to be used to make automated payments on fraudulent policies."
"The Utah Department of Insurance executed a 'Buy Bust' operation. An undercover investigator contacted Garcia via WhatsApp. Garcia requested a $100 Venmo fee, then provided the quote after receiving payment," charging documents continued.
One insurance company's analysis of the "'Buy Bust' digital footprint" linked Garcia's phone and email to "415 sold policies and 126 quotes between October 2025 and January 2026 alone," while a second analysis "showed an additional 527 quotes and 194 policies sold between the previous buy bust and current date process," the charges state.
