An Artesia, Calif., insurance agent, preparing for trial on grand theft and insurance fraud charges, was recently arrested for alleged misusing insurance premiums.

Lisa Christine Franklin, 39, was arrested on single counts of grand theft and diverting insurance premiums, according to the California Department of Insurance. The charges could mean four years in prison, if Franklin is convicted.

At the time of her arrest, according to regulators, Franklin was already accused of grand theft, filing a fraudulent insurance claim and diversion of insurance premiums stemming from a case involving her husband, Robert Franklin, in late 2008. That case is being prosecuted by the Los Angeles County District Attorney’s Office.

The new charges came after insurance investigators say Lisa Franklin, as the owner of Skylight Insurance Agency in Los Angeles, collected insurance premiums for an auto policy from September 2009 to December 2009. The alleged victims paid an initial deposit to Franklin and subsequent monthly payments of $437 and in return, received a bogus evidence of insurance document, investigators said.

The alleged victims’ vehicle was involved in an accident on Dec. 2, 2009, and it was determined that the repairs far exceeded the value of the automobile, and the alleged scam was discovered when the insurer they thought they had a policy with told them one was not in effect, officials said.

Investigators allege Franklin failed to submit the application and premium deposit to the insurer until Dec. 7, 2009 – five days after the accident – sending a $139 premium deposit. The policy was issued with an effective date of Dec. 4, 2009, and the claim for the accident was denied as there was no coverage at the time.

California regulators received a complaint from the alleged victims, thus starting their investigation.

Administrative action against Lisa Franklin’s insurance licenses is pending, the department said. Robert Franklin’s California insurance license was revoked in 2004 after he was convicted and sentenced for grand theft of premium.