Morgan Hill man accused of leading insurance fraud scheme

A Morgan Hill resident and former insurance agent orchestrated a large-scale insurance fraud scheme that ripped off victims to the tune of more than $1.4 million, according to authorities. 

Five people were charged recently with felonies related to the fraud scheme, says an April 10 press release from the California Department of Insurance. One of the charged suspects, Alejandro Carlos, 25, of Gilroy, is a fugitive at large and authorities are asking the public for assistance in locating him. 

The Department of Insurance said the scheme was led by Daniel Jon Carpenter, 62, of Morgan Hill. Carpenter was arraigned on felony charges including insurance fraud, grand theft and identity theft. 

Carpenter, a former insurance agent, worked up the scheme—which victimized consumers from 2017-2023—with four co-defendents. The other defendants are Carlos as well as Natorae Marie Wettstein, 56, of Rancho Mirage; Blake John Carpenter, 27, of San Jose; and Noah Maxwell Kuh, 26, of San Jose. 

Wettstein, Blake John Carpenter and Carlos were charged with insurance fraud and grand theft, authorities said. Maxwell Kuh was charged with insurance fraud. 

The Department of Insurance said its staff launched an investigation shortly after receiving a complaint from a consumer who said some life insurance policies sold by Daniel Carpenter had shown evidence of forgery and fraud. 

Investigators found that Carpenter, working with the other defendants, allegedly misrepresented life insurance policy terms to California consumers and falsified agent information on policy applications that had been submitted to multiple insurance companies. 

The scheme allowed the suspects to collect unearned commissions from four insurance carriers from 2017-2023, authorities said. 

The defendants fraudulently obtained more than $1.4 million in commissions by manipulating more than $2 million in insurance premiums from 28 customers in California, says the press release. The Department of Insurance has helped to recover more than $2 million for the affected victims. 

Daniel Carpenter, Blake Carpenter, Wettstein and Kuh are scheduled to return to court on April 25, the department said. The Santa Clara County District Attorney’s Office is prosecuting the case. 

Anyone with information on Carlos’ whereabouts can call the California Department of Insurance at 707.751.2000.