Encino insurance adjuster tried to scam Eaton fire victims and others, state alleges

Introduction to the Allegations

An Encino-based public insurance adjuster and a series of related companies allegedly submitted false claims, stole insurance funds and failed to complete repairs for more than a dozen clients, including two Eaton fire victims, according to a newly filed class-action lawsuit and a complaint from the state Department of Insurance.

Background on the Investigation

The Department of Insurance is now moving to fine and revoke the licenses of Aleksandr Guldshtadt and his company, Nationwide Insurance Claims Advocates (NICA), and to reject a license application from his wife, Evghenia Gaiju, as a result of its investigation, documents showed. The revocation is pending a hearing expected to take place within the next month. State investigators believe Guldshtadt controlled NICA while having financial interests in at least three of the contractors hired using client insurance funds. It is illegal in California for an insurance adjuster to “receive remuneration from or have a finance interest in” any firm that obtains business related to an insurance claim handled by the adjuster.

Related Companies and Allegations

Gaiju is considered to have “aided and abetted” Guldshtadt, the complaint states. Those related companies include Evolve Construction & Restoration, CalMaster Restoration, and WD Contractor Services Inc, according to the Department of Insurance. Contractor licenses for each were issued to Guldshtadt or listed him as having at least 10% ownership stake, investigators alleged. One company was registered to Guldshtadt’s mother-in-law, and two used the same business address as NICA.

Class-Action Lawsuit

Altadena resident Nadine Isenberg filed a class-action lawsuit April 30 that her attorney, Brett Moore, estimates could include 40 to 100 other victims across the state and potentially nationwide. Moore alleges NICA has taken advantage of not only families impacted by the January wildfires here in Los Angeles County, but other disasters as well. “There are multiple victims, it is not just from the Eaton fire,” Moore said. “He owns Evolve, he owns Nationwide Insurance Claim Advocates, he owns the people who do the testing. So all of the money that insurance pays out goes to him, goes into his pocket.”

Response from Guldshtadt

Reached by phone, Guldshtadt denied the allegations. “I don’t own those companies myself,” he said. “The (same) address doesn’t mean that I own the company.” In a text message, Guldshtadt said his attorneys are in the process of responding to the Department of Insurance. “There is not a single victim that lost any money due to our work,” he said.

State Investigation Findings

The state’s investigation included interviews with 15 alleged victims, stretching from San Francisco to Bakersfield, Long Beach, Altadena, and Pasadena, over a five-year period. The company allegedly forged a signature, filed false claims, and “used illegal means in the collection or attempted collection of a debt.” “Respondent Guldshtadt harassed one Victim until she passed away and then harassed Victim’s sister for unearned fees,” the investigators wrote. “Two of Respondents’ representatives drove to the home of the other Victim, who was 80 years old at the time, and demanded a fiduciary check when it was accidentally sent to that Victim’s home.”

Victim Experiences

Several of the victims alleged they entered into contracts with NICA or one of the other related entities to repair roofs or water leaks, only to have the company stop responding after its employees tore up kitchens and walls. Others stated NICA tricked them into signing contracts, intercepted insurance money, and then kept significant portions without doing any work. One former client alleged NICA and WD Contractor Services cut out water-damaged walls, installed humidifiers, and only returned 10 days later to remove the humidifiers and then never showed up again. Her insurance provider ultimately denied her claim and stated she would have to pay $28,000 to repair the walls.

Additional Complaints and Lawsuits

WD Contractor later tried to bill her $5,740 for the work it didn’t finish and threatened to harm her credit and to sue, according to investigators. Three of the victims were coerced into signing contracts presented exclusively in English, though they could speak and read only Spanish. In Long Beach, a woman contacted her insurance company after noticing a water leak in December 2023, and a month later, a man showed up at her home and gave her the impression he’d been sent by the insurance company. She signed a contract under that belief, only to later learn that was not the case. NICA submitted a claim on her behalf and would not provide her with a list of the supposed work that had been done, according to investigators.

Conclusion

The allegations against Aleksandr Guldshtadt and Nationwide Insurance Claims Advocates are severe and involve multiple instances of fraud, deception, and exploitation of vulnerable individuals, including those affected by natural disasters. The ongoing investigation and class-action lawsuit aim to hold them accountable and seek justice for the victims. It is essential for individuals to be cautious when dealing with insurance adjusters and contractors, especially in the aftermath of disasters, and to thoroughly research companies before signing any contracts.

FAQs

1. What are the allegations against Aleksandr Guldshtadt and Nationwide Insurance Claims Advocates?

   • The allegations include submitting false claims, stealing insurance funds, and failing to complete repairs for clients, among other deceptive practices.

2. How many victims are potentially involved in the class-action lawsuit?

   • The lawsuit estimates that there could be 40 to 100 other victims across the state and potentially nationwide.

3. What is the role of Evghenia Gaiju in the allegations?

   • Gaiju is considered to have “aided and abetted” Guldshtadt, according to the complaint.

4. What companies are related to Nationwide Insurance Claims Advocates?

   • The related companies include Evolve Construction & Restoration, CalMaster Restoration, and WD Contractor Services Inc.
5. What are the potential penalties against Guldshtadt and his company?
   • The Department of Insurance intends to seek tens of thousands of dollars in penalties, including $5,000 to $50,000 for each violation involving someone 65 years or older and $5,000 to $10,000 for each unfair or deceptive act.