Top Insurance Fraud Cases
Renee Allen, a formerly licensed insurance escrow officer, pled guilty in Dallas to engaging in Organized Criminal Activity, a 1st degree felony. Allen devised a multi-million dollar mortgage fraud scheme and with the help of others, defrauded buyers, sellers, and lenders to sign or execute real estate settlement documents and money transfers affecting real property in the amount of $2,221,000.00. The scheme involved fraudulent representations by purported real estate investors who with Allen purchased several homes at below market prices. They recruited non suspecting customers who believed they were purchasing the properties from the builders at a great price when in fact they were paying more for the houses then the builder was selling them for. Allen was sentenced to 120 months deferred adjudication, 320 hours of community service and was ordered to pay $2,221,900.00 in restitution in Dallas County.
Negal Dixon Reado, pled guilty to Insurance Fraud in Houston. Reado submitted fraudulent claim forms to his insurer for injuries sustained in an alleged motor vehicle accident. Reado was sentenced to 120 months deferred adjudication, 100 hours community service and ordered to pay $17,100.00 in restitution.
Darryl Golter, a formerly licensed insurance agent, pled guilty to the offense of Misapplication of Fiduciary Property, a 2nd Degree Felony, in Houston. He operated the Golter Insurance Agency located in Pasadena, Texas until Hurricane Ike hit. Golter collected in excess of $96,000.00 in homeowners and windstorm insurance premiums from 85 customers and failed to forward the money to the insurers. In the storm’s aftermath, many of his customers, both residential and commercial, suffered damages to their properties and soon learned that they had no wind peril insurance. Golter was sentenced to 120 months probation, 180 hours of community service and was ordered to pay $50,635.86 in restitution.
Donald L. Johnston, a formerly licensed insurance agent, pled guilty in Dallas to Theft. Johnston devised a scheme involving the submission numerous fraudulent applications for insurance to his company in an effort to obtain advance commissions. The applications on fictitious individuals and groups allowed him to collect huge commissions before the company caught on to his scheme. Johnston was sentenced to 10 years probation, ordered to pay $208,762.80 in restitution and fined $3,000.00.
Roosevelt Kimbrough, a formerly licensed insurance agent, pled guilty in Dallas to the offense of Unauthorized Insurance, a 3rd Degree Felony. After surrendering his agent’s license in 2006, he opened the Ark Insurance Agency in Dallas and purported to sell insurance to unsuspecting clients for auto and homeowners insurance, using their $19,000.00 in premiums for his personal benefit. He was sentenced to 49 days in jail, placed on 96 months probation, ordered to serve 120 hours community service, fined $2,000.00 and ordered to pay restitution to his victims in the amount of $19,051.75.
Kristin Larson, a formerly licensed insurance agent, pled guilty to Theft in Austin. Larson of Hurst, Texas diverted almost $50,000.00 from policyholders’ premiums to her own use, in addition to defrauding her mother by fraudulently withdrawing $12,800.00 from her mother’s life insurance policy. Larson was sentenced to 72 months probation, 200 hours community service and ordered to pay $24,225.75 in restitution.
Bobby Gene Lockley, pled guilty to Fraudulent Obtaining Benefits (workers’ compensation) in Pecos, Texas. Lockley continued to collect benefits while failing to disclose that he was operating a personal business. He was sentenced to 60 months deferred adjudication, 175 hours community service, order to pay $16,888.73 in restitution and fined $500.00.
Jennifer Midkiff, pled guilty to Insurance Fraud in Jasper, Texas. Midkiff was a paramedic with medical billing background who submitted fraudulent medical records on herself and other family members to her insurer for claims under their accident/health and disability policies. She was sentenced to 120 months probation, 240 hours community service, ordered to pay $135,982.42 in restitution and fined $1,000.00.
Staci Roach, a formerly licensed insurance agent, pleaded guilty in Austin to the offense of Theft, a 3rd Degree Felony. Roach collected $82,807.52 in advanced sales commissions based on insurance applications which contained false information about 95 perspective applicants. Roach was sentenced to 120 months deferred adjudication, 300 hours of community service and was ordered to pay $85,408.74 in restitution.
Grace Williams, pled guilty to Insurance Fraud in Littlefield, Texas. Williams claimed that a storm caused the roof of a nearby building to blow off and damage her vehicle when in fact her vehicle was not damaged. Williams had previously submitted a similar claim from windblown damage to her vehicle. Williams was sentenced to two years in the Texas Department of Criminal Justice and ordered to pay $3,408.29 in restitution.
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Last updated: 11/09/2011
