Andrew John Hulit, 33, recently pleaded guilty to forgery and embezzlement of more than $13,600 from his former insurance brokerage clients.

Hulit was a fire and casualty insurance broker/agent in Simi Valley from October 1996 to October 2002. During that time, the defendant fraudulently collected insurance premiums from a group of his clients for the stated purpose of purchasing insurance coverage for them.

California insurance law requires insurance agents to act as a trusted fiduciary of their clients' funds. All premium funds collected in this fiduciary capacity must be deposited in a trustee bank account until they are paid out to the insuring companies or agents. Instead of purchasing the policies, Hulit kept the money for himself, fraudulently reporting to his clients that he had purchased policies on their behalf.

The California Department of Insurance began an investigation when one of Hulit's clients discovered his insurance policy had been cancelled for nonpayment. In an effort to hide the theft of the premiums, Hulit also forged various documents and sent them to other brokerage firms and insurance companies, leaving his clients uninsured.

Hulit's sentencing hearing is scheduled for Oct. 4. He faces a maximum sentence of four years, eight months in state prison. The district attorney will recommend that the defendant pay full restitution of more than $13,600 to the clients.