Orange Country DOI Cracks Down on SoCal Staffing Fraudster


On 10/28/2021, an unlicensed insurance agent Karyl Lynn Reed, 57, formerly of Cosa Mesa, was arraigned on multiple felony counts of grand theft, forgery, embezzlement, and aggravated white-collar crime after allegedly defrauding three victims of over $1.4 million. The arraignment occurred in the Orange County Superior Court.

Earlier this month, Reed was arrested in Seabrook, Texas, and extradited to Orange County.

According to, an investigation by the Orange County Office of the CA Department of Insurance found that between 2012 and 2019, Reed acted as an insurance agent without a license and collected premiums for workers' compensation insurance through her businesses, Envoy Business Partners and Allenn Specialty Group. She would provide her victims with fraudulent Certificates of Insurance, causing her victims to believe they had valid coverage when there was no actual insurance.

“Local businesses are the lifeblood of our recovering economy. Ms. Reed's alleged actions put these businesses owners' livelihoods at risk by stealing their money and leaving them uninsured,” said Insurance Commissioner Ricardo Lara. “My department is dedicated to investigating and stopping unlicensed agents to protect California's consumers and businesses who help keep our economy strong.”

The investigation discovered Reed also operated a staffing company without valid workers' compensation coverage and self-adjusted and administered employee injury claims. She collected workers' compensation premiums and payroll, employer, and employee taxes from victims, and provided them with falsified Certificates of Insurance as well leading them to believe they were covered when they were not.

The Department's investigation revealed that one victim did not have workers' compensation coverage for an employee who became injured. Another victim had requested an updated Certificate of Insurance from their insurance company and were told no policy or coverage was in place and found out the policy number Reed had provided them belonged to a policy for another business. The investigation further revealed another victim who discovered the money they were paying Reed to her staffing service was not being remitted to the insurance company.

“Cal-SARA applauds and supports the Department and the court in bringing this predator to justice” said Cal-SARA Executive Director Mark Bertler. “As the economy recovers, staffing agencies are, in many instances, leading that recovery”, he noted.

“Staffing agencies need access to reliable workers’ compensation insurance at a reasonable price to protect their business, their employees and their clients”, he continued.

Mr. Bertler concluded by saying, “Fraudulent operators like Ms. Reed take advantage of unsuspecting businesses and their employees for personal gain and Cal-SARA is committed to working with state and local agencies, the courts and whistle blowers to protect legitimate businesses and bring these predators to justice”

If you suspect workers’ compensation insurance fraud, you can report it on Cal-SARA’s website at”

About Cal-SARA

Cal-SARA is a nonprofit membership-based association promoting legal and regulatory compliance in the sale of workers’ compensation insurance and advocates for the common business interests of its members in recognizing and eliminating workers’ compensation fraud in the temporary staffing/staffing/recruiting industries. Learn more at


Mark Bertler

[email protected]

(909) 638-2433