Updated 4 p.m. Tuesday: Kim Davy arrested for alleged grand theft
Lincoln resident Kimberly Tyner Davy, 64, a local businesswoman, was arrested the afternoon of Dec. 28 for alleged grand theft involving customers of her insurance company. Her company is Kimberly Davy Insurance.
Davy was arrested pursuant to a $50,000 arrest warrant and transported to the South Placer Jail. She was released on bail after 9 p.m. Dec. 28.
According to a press release from the Lincoln Police Department, local police officers were aided by California Department of Insurance investigators in a lengthy investigation into Davy’s business practices.
On Friday, Davy said Ed Merten, another local insurance provider, was responsible for the taking illegal commissions and leaving commercial clients’ policy payments short of funds.
Merten denied having anything to do with Davy’s arrest.
According to the Lincoln Police press release, Davy wrote insurance policies for a number of businesses after finding an agency that would insure them. She then offered them a discount if they paid in advance and then allegedly used some or all of that money for personal use. Davy allegedly then changed the client’s address to her own, and when the agency sent delinquent notices and/or cancelled the policy, the client was not notified, according to the Lincoln Police Department.
This investigation began when one of her victims was notified that their payment was delinquent, despite having paid in advance, according to the Lincoln Police Department.
Davy, in a prepared statement Friday morning, apologized to her friends and business partners and denied any wrong-doing, adding “all is not as it seems and I am looking forward to being completely vindicated in court in the near future.”
“The charges brought against me are categorically false and are a result of Kimberly Davy Insurance agreeing to place commercial clients for Ed Merten’s Farmers Insurance Agency,” Davy said in the release.
Davy accused Merten of routinely taking illegal commissions off of clients’ policy payments and leaving them short of funds. Davy, in the prepared statement, said she filed a claim with the California Department of Insurance and severed her business relationship with Merten.
Davy also asserts, in the prepared statement, that Merten filed a false police report with the Lincoln Police Department claiming theft, which led to her arrest.
“I want to assure everyone that not one penny of ill-gotten gains went into the hands of anyone at Kimberly Davy Insurance,” Davy said, in the prepared statement. “I have many clients in the Lincoln area and throughout California and not one of them would ever imagine any malfeasance or anything but the utmost in integrity and fidelity from my agency.”
On Saturday, Merten said he was disappointed by Davy’s comments.
“I feel bad for the Davy family to have to go through this,” Merten said. “I had nothing to do with the outcome.”
Merten suggested he has known of the investigation into Davy’s business practices for nearly three years.
“The Lincoln Police Department and Placer County District Attorney’s office would not have thoroughly investigated this case for two-and-a-half years if it was all falsified,” Merten added. “If they were just going to take my word for it, (the investigation) would not have taken two-and-a-half years.”
Nancy Kincaid, a California Department of Insurance spokeswoman, confirmed that Department of Insurance investigators were called in on the case.
“Our department has unique expertise and the largest branch is enforcement,” Kincaid said. “Our investigators were called in to provide technical and expert assistance on the case.”
There is yet no indication as to the number of victims involved or whether other insurance professionals were involved.
Calls to the Lincoln Police Department were not returned, as of press time.