A 14-month-long “ghost broker” investigation has concluded with the arrest of a man accused of procuring more than 1,120 auto insurance policies using fraudulent data and social media apps.
The Utah Insurance Department announced the arrest of Carlos David Garcia Gonzalez in Liberty Hills, Texas.
It is alleged that between January 2023 and January 2026, Garcia operated a large-scale “ghost broker” scheme in which he procured auto insurance policies by submitting fraudulent data online to three different carriers on behalf of predominantly Hispanic victims residing in Utah.
The actions of Garcia, who is not a licensed insurance agent, resulted in $832,000 in premium avoidance. While fraudulently writing the auto policies, Garcia charged his victims more $84,470 in payments for obtaining the policies, according to the department.
The Utah Insurance Department previously issued two alerts regarding Garcia’s practices to warn consumers about purchasing auto policies with unconfirmed agents via WhatsApp or other social media type platforms.
Garcia is charged with two counts of 2nd degree felony pattern of unlawful activity, 2nd degree felony communications fraud, 2nd degree felony insurance fraud, 3rd degree felony forgery and 3rd degree felony identity fraud.
The U.S. IPO market rebounded in April after a brief lull driven by geopolitical tensions, with companies across sectors filing to gauge investor appetite.
Within the insurance sector, brokers have dominated recent listings, accounting for six of the 16 largest IPOs since 2021, led by Ryan Specialty Holdings, according to S&P Global.
Analysts note that insurance brokers face less volatility than underwriters when going public.
Hub offers property and casualty, reinsurance, life and health, and employee benefits services, with around 21,000 employees across 570 offices in North America, according to its website.
Formed in 1998 through the merger of 11 Canadian brokerages, Hub listed on the Toronto Stock Exchange in 1999 and the New York Stock Exchange in 2002, before being taken private in 2007.
In 2013, private equity firm Hellman & Friedman acquired it in a $4.4 billion deal from Apax Partners and Morgan Stanley.
Confidential filings allow companies to keep their finances under wraps until closer to the listing and prepare for IPOs away from public market scrutiny.