Insurance Broker Held in Grand Theft Case

The owner of an Orange County insurance brokerage was arrested on suspicion of 10 counts of felony grand theft, allegedly for defrauding customers, authorities said Friday. Kelly R. Kohoutek, 39, is being held on $50,000 bail. If convicted, Kohoutek could face up to six years in prison, as well as additional fines and restitution, authorities said. Investigators from the state Department of Insurance and Irvine Police Department alleged Kohoutek collected $36,000 over 11 months through October 1996 from customers seeking homeowners’ insurance. But he failed to send applications and premium payments to insurance companies, leaving 30 homeowners without coverage, authorities said. The insurance was sold through his firm, K&M; Insurance Brokers, they said.