The second cousin of California Insurance Commissioner Steve Poizner is accused of submitting checks for auto claims exceeding the amount required for repairs and pocketing the difference.

Paul Daniel Poizner, an adjuster for California Casualty Management, pleaded not guilty to 60 counts linked to the alleged scheme, according to the Los Angeles Times. He was arrested following an investigation by the Los Angeles County District Attorney’s Office Insurance Fraud Bureau of Investigation.

Prosecutors allege that Paul Poizner, 45, stole $300,000.

The scheme was uncovered during a company audit of auto damage claims submitted between May 2008 and February 2009, the Times reported, citing a criminal complaint filed by Los Angeles County prosecutors.

A spokesman for the California Department of Insurance said California Casualty informed prosecutors and state regulators about their findings in March, and after learning the identity of the suspect, Steve Poizner, who is running for governor in California, immediately recused himself from the investigation, according to the report.

Paul Poizner will return to court Feb. 5 for a preliminary hearing.