Insurance Fraud Division Stops “Ghost Broker”

Unlicensed seller defrauded more than 1,000 consumers

On June 22, 2026, investigators with the Utah Insurance Department Fraud Division concluded a 14-month-long “ghost broker” investigation culminating with the arrest of Carlos David Garcia Gonzalez in Liberty Hills, Texas.

Between January 2023 and January 2026, Garcia — who is not a licensed insurance agent — operated a large-scale “ghost broker” scheme whereby he procured over 1,120 auto insurance policies by submitting fraudulent data online to three different insurance companies on behalf of predominantly Hispanic victims residing in Utah. His actions resulted in approximately $832,000 in premium avoidance. While fraudulently writing the auto policies, Garcia charged his victims over $84,470 in payments for obtaining the policies.

“Garcia used word of mouth in the Hispanic community to sell auto insurance to consumers who were unable to obtain insurance and at a substantial discount to what they could otherwise obtain,” said Fraud Division Director Armand Glick. “Garcia used WhatsApp and Zelle to communicate with consumers and to transfer their money. Because Garcia was not a licensed insurance agent, and he used false information in obtaining auto policies for victims, Garcia created a significant risk that if policy holders were involved in auto accidents, their claims would not be honored.”

The Utah Insurance Department previously issued two consumer alerts regarding Garcia’s practices to warn consumers about purchasing auto policies with unconfirmed agents via WhatsApp or other social media type platforms.

Any consumer who believes they may have purchased auto insurance through WhatsApp or Zelle with Garcia should contact their insurance company to review the information their policy was issued under and make any necessary corrections to ensure their coverage remains valid.