The "Farmers Insurance News-Alert" website is dedicated to providing the consumer and general public with detailed information concerning the Farmers Insurance Group. This includes fraud reports, consumer complaints, lawsuit's and other legal actions taken against this company. All information contained herein is for educational purposes only. Original sources, when known are sited.




SAN JOAQUIN COUNTY – Following an 11-month investigation by the Department of Insurance (DOI) Fraud Division and the San Joaquin County District Attorney’s Office, a former insurance agent pleaded guilty to insurance fraud and embezzlement. The agent, who was held in custody in Aurora, Colorado, was extradited to California last week. The San Joaquin County District Attorney’s Office issued the warrant for his arrest.

Thomas Edward Purdy, 42, of Aurora, Colorado, pleaded guilty at his arraignment June 18, 1999, to one felony count of insurance fraud and one felony count of embezzlement. Purdy was sentenced to 120 days in the San Joaquin County Jail and five years formal probation. The amount of restitution has yet to be determined.

According to DOI Fraud Investigators, in May of 1997, Farmers Insurance Company conducted an investigation into Purdy’s activities. Farmers initiated the investigation after receiving numerous complaints from Purdy’s clients saying that although they were paying premiums, they never received any verification of their insurance coverage. In addition, Purdy’s clients complained that his office was closed.

DOI Fraud Investigators say that Purdy embezzled at least $16,565 in premiums from Farmers Insurance Company.


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