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Eduardo L Castilla, Selene Castilla, Danny Castilla do insurance fraud.
I met Ed about 2 years ago through a posting on CraigsList. He was looking for an investor who he could work with him doing homeremodeling/flipping in Los Angeles. He presented himself as an experiencedinvestor/flipper of real estate properties in Los Angeles and Florida. He saidthat he had lost numerous properties and cars in these states due to too muchleveraging.
Our agreement was: I supplied the funds to buy and rehab aproperty and he supplied the experience to do the flip.
Results: he performed well in that he foundcontractors/workers to perform the work at good prices and I provided all the funds to buy the property with cash and pay all the workers/contractor who did the work.
Bottom line: we made a very small profit that we splitevenly. No problems. So far, so good.
We decided that flipping real estate was not good during thecurrent economic times.
Ed decided that he would go back into selling commercialvans and trucksa variation of enterprises that he had done before with hiswife.
I was invited to participate with him under the samebusiness conditions that we had for flipping real estate: I provide the fundsand he provided the expertise/labor. Ed provided a simple written contract asbefore.
I put into a joint bank account $120,000 with $20,000 to beused for build out expenses for the commercial/industrial space needed (which Ed already leased for $500/mo for a previous remodeling business) and $100,000 topurchase inventoryie the actual vans and trucks that Ed would sell.
Bottom line: Ed immediately started using the inventorymoney to pay for the building rent, personal restaurant, grocery, gas andairline expenses and other personal expenses (for which he reimbursed thecompany account for only if I caught them in my review of company expenses). Ialso caught a large $15,000 (approximately) deposit, then withdrawal to theaccount and Ed said it was personal funds that did not involve the company. I nowbelieve that it was a commercial vehicle that Ed purchased with company funds and had presold to a client. All profit from that sale were kept by Ed.
Now enters Selene Castilla, wife. She has a car accidentmidmorning and calls Ed. Ed had the car towed to his business location. Cararrives with major damage to the left front side. Ed say the SUV is covered byCast Motors Inc insurance coverage but he does not want to have the companyresponsible for the repairs. Ed then calls his brother Danny who is anindependent insurance agent. Ed asks Danny if he can write a policy for the SUVand have it cover the accident. Danny writes the policy and the insurancecompany covers the damage to the SUV to the tune of about $10,000. That's insurance fraud
Are these people you want to do business with?
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