A couple was arrested Tuesday morning in what authorities called a life insurance scam that resulted in the theft of $1 million.
Peter Muh Kim, 39, of La Canada Flintridge, and his wife, Jin Kyung Kim, 35, were arrested and booked underÂ suspicion ofÂ three felony counts of grand theft and three felony counts of insurance fraud, according to a statement released by the stateâ€™s Department of Insurance.
Peter Kim, a licensed insurance agent, allegedly used the insurance of one of his terminally-ill clients to receive $1 million.
An investigation by the department revealed that Peter Kim allegedly sold two insurance policies to his wife, Jin Kim, and falsely listed her as a niece and beneficiary of his insured, terminally-ill client, the statement said.
During the same time, Jin Kim allegedly purchased another life insurance policy for the same insured client, and falsely listed herself as the sister and beneficiary of the terminally-ill individual.
Throughout these dealings, the statement alleges, Peter Kim is suspected of intentionally neglecting to report his clientâ€™s terminal illness diagnosis to the insurance companies.
The coupleâ€™s scheme was complete when the terminally-ill client died in July 2014, and the insurance companies paid Jin Kim over $1 million in life insurance proceeds, the statement said.
â€śTo those contemplating insurance fraud, let this be an example that this crime is a felony,â€ť said Dave Jones, the stateâ€™s insurance commissioner in the statement.
Online county jail records Tuesday showed Peter Kim was booked at the Inmate Reception Center in Los Angeles while Jin Kim was booked at the Lynwood County Jail.
Bail is set at $460,000 for each of them.
An arraignment date was pending.
An online database of insurance agentsâ€™ licenses show that Peter Kim holds an active license for â€śLife and annuities,â€ť which expires next August.