February 3, 2025
OLYMPIA, Wash. — A King County judge issued a bench warrant on January 15 for Edward Hadley, a former Seattle insurance agent charged with stealing more than $400,000 in premiums from his clients.
Hadley was charged with nine counts of first-degree theft after investigations by the Office of the Insurance Commissioner’s Legal Affairs and Criminal Investigations units. The King County Prosecutor’s Office filed charges, and the warrant was issued after he failed to appear in court.
Between December 2020 and November 2021, Hadley deposited 21 checks totaling $424,107 made payable to HUB International Northwest LLC (HUB NW) into his personal account, rather than the appropriate business account.
One of Hadley’s business clients switched their earthquake insurance to a different company — Superior Underwriters — and requested copies of the prior policies Hadley had sold them. When he finally provided copies of the previous policies, the new company determined the policies Hadley had purchased had different terms, premiums, and contract and issuance dates, and he had provided falsified proof of coverage documents for their earthquake policies.
Superior Underwriters notified the OIC of Hadley’s suspected violations. The OIC’s Legal Affairs team completed a regulatory investigation and discovered the allegations against Hadley were founded.
Eleven of the consumers interviewed during the investigation noted that they had not made their checks out to Hadley but to his insurance agency. Hadley then collected the checks, wrote his own “City B Properties” business name on the checks, and deposited them into his personal account via ATM.
During the period when Hadley was depositing premium checks into his personal account, he withdrew $276,387 for payment back to HUB NW — though whether that money was returned to consumers impacted in this case is unclear. The other $147,719 was unaccounted for.
The OIC’s Legal Affairs team forwarded the investigation to CIU. Hadley was also added to Insurance Commissioner Patty Kuderer’s insurance fraud most wanted list. The OIC revoked his insurance producer license in June of 2024.
Fraudulent claims cases
Two other suspects joined Kuderer’s insurance fraud most wanted list after they failed to appear at their arraignments.
Maria Carrera Martinez faces felony charges for filing a fraudulent insurance claim and theft in the first degree. A warrant was issued for her arrest after an investigation by Kuderer’s Criminal Investigations Unit and charges filed by the Skagit County Prosecutor's Office.
Carrera Martinez, of Mount Vernon, purchased an auto insurance policy with Patriot General Insurance Company for her 2010 GMC Terrain on Nov. 16, 2023. On Dec. 4 she filed a claim stating her GMC had been damaged by an unknown vehicle. Patriot General deemed the car a total loss and paid her $7,444.85, but a week later learned she had been in a collision the morning she purchased her policy and had been uninsured at the time of the wreck.
Upon learning the claim was fraudulent, Patriot General referred the claim to CIU as required by state law.
Patricia Ochoategui faces a charge of false claims or proof filed by the King County Prosecutor’s Office.
Ochoategui, of Everett, purchased a policy with Metromile on Sept. 15, 2021, and added her son’s 2016 Mercedes-Benz C300 to the policy on Feb. 8, 2022. That March, she filed a claim online saying that the vehicle had been vandalized and suffered both body damage and engine issues.
Metromile, however, discovered the vehicle had been taken to two separate Mercedes-Benz dealerships the previous September. Both dealerships said the vehicle needed a new engine. Metromile discovered all the damage to the vehicle pre-dated the car being added to the insurance policy and was not a result of the alleged vandalism. The $35,404.76 claim was denied and referred to CIU.
If you have information that may lead to the arrests of Maria Carrera Martinez, Patricia Ochoategui, or Edward Hadley, please contact your local law enforcement agency or contact Kuderer's Criminal Investigations Unit (CIU).
About CIU
CIU investigates insurance fraud and works with allied law enforcement agencies and state and local prosecutors on criminal cases. Insurance fraud costs the average family $400 to $700 per year in increased premiums. Insurance companies are required by law to report fraud to the commissioner.
If you suspect someone of committing insurance fraud, report it to Kuderer’s investigators.