Smoke damage fraud alleged

State insurance agency freezes the operations of Glendale company over claims for homes

State investigators have halted the operations of a Glendale business that allegedly submitted smoke damage insurance claims on behalf of homeowners without their knowledge or consent.

A California Department of Insurance investigation discovered that California Recovery Group and its owner, Argen Youssefi, were soliciting business at people’s homes and sending out mass mailers in an effort to file insurance claims related to damage caused by wildfires.

The mailers prompted property owners to visit the website Smokeclaim.com or call a number

in order to receive smokesettlement information.

Investigators allege CRG and its representatives often would mislead prospective clients by telling them the program was funded by the state of California and saying there would be no claim against their homeowner’s insurance and no impact on their monthly rates.

Homeowner’s insurance typically covers smoke damage.

Investigators further claim CRG listed itself as the payee on some of the claims that were submitted without the knowledge or consent of homeowners.

Investigators say the company’s illegal actions took place from 2019 through 2021.

Homeowners often don’t know where to turn when disaster strikes and CRG “took advantage of difficult situations in violation of California’s consumer protection laws,” Insurance Commissioner Ricardo Lara said in a statement.

Youssefi is surrendering his licenses to the state Department of Insurance and will be prohibited from working in the insurance industry in any capacity for eight years, officials said.

Investigators say there may be additional victims as the investigation is ongoing. Anyone who believes they may be a victim should contact the California Department of Insurance at 213-278-5000.

The department offers a “Don’t Get Scammed” guide that’s designed to help homeowners avoid fraudsters, ranging from unlicensed contractors to others who swoop in in the wake of natural disasters.

California Recovery Group’s voicemail says the company is not taking on any more clients and it is referring those who may be inquiring about a potential settlement with CRG to call Megerdomian Law Offices at 877734-3095.

THE ASSOCIATED PRESS A Glendale company submitted insurance claims on smoke damage from wildfires without homeowners’ knowledge, state officials said.