Five People Face Felony Charges in $1.4 Million California Life Insurance Fraud Scheme

Five individuals, including former licensed insurance agents, are facing felony charges in connection with a large-scale life insurance fraud scheme uncovered by the California Department of Insurance. The alleged fraud involved misrepresenting life insurance policies and falsifying agent information to secure unearned commissions from multiple insurers.

Daniel Jon Carpenter of Morgan Hill is accused of orchestrating the scheme with the help of Natorae Marie Wettstein of Rancho Mirage, Blake John Carpenter of San Jose, Noah Maxwell Kuh of San Jose, and Alejandro Carlos of Gilroy, who is still at large. According to investigators, between 2017 and 2023, the group manipulated over $2 million in insurance premiums from 28 California consumers, securing fraudulent commissions exceeding $1.4 million.

The investigation began after a consumer complaint reported forgery and fraudulent policy activity linked to Daniel Carpenter. The Department of Insurance has since recovered over $2 million for the victims involved. The defendants are scheduled to appear in court on April 25, 2025, while the search for Alejandro Carlos continues.

The Santa Clara County District Attorney’s Office is handling the prosecution of the case. Authorities urge anyone with information about Carlos’ whereabouts to contact the Department of Insurance.