FLORIDA

Former Agent Accused of Taking $92,000

Joel Berg, the former owner of J.B. Williams & Co. in Weston, Fla., and Seacoast Marine Insurance Inc. in Fort Lauderdale, was arrested for allegedly misappropriating more than $92,000 in insurance premiums from more than 50 customers. If convicted, Berg could face up to 45 years in prison.

Berg was arrested by detectives with the Department of Financial Services, Division of Insurance Fraud. He was booked into the Broward County Jail on charges of organized fraud and misappropriation of insurance premiums. Bond was set at $28,500.

The fraud division’s investigation determined that, from June of 2002 through March of 2003, Berg accepted marine insurance premiums from at least 50 customers and did not forward the premiums to the insurance company. In each instance, investigators said, Berg received the insurance premiums from the customers and deposited the funds into his personal bank account.

The department’s Division of Agent and Agency Services revoked his agent’s license in April.

GEORGIA

14 Apprehended in AFLAC Scam

An ongoing investigation in Albany, Ga., has netted 11 for fraudulently filling out medical insurance claim forms and filing them with AFLAC, the insurance company for both Albany and Dougherty counties.

According to the Dougherty County Sheriff’s Department overpayments of $149,415 have been uncovered.

Albany sanitation worker Tim Hunt and his unemployed wife, Kysheila are believed to be the ring-leaders, while dozens of others could be involved. The Hunts and seven other perpetrators were charged with insurance fraud.

Jonathan West also surrendered to face insurance fraud charges; while a co-worker, Larry Stephens, was arrested while in a courtroom on an unrelated matter.

Six City of Albany sanitation workers and an Albany Water, Gas and Light meter department worker reportedly formed a network of family, friends and co-workers to file bogus insurance claims with AFLAC. Dougherty Sheriff’s Investigators said AFLAC paid nearly $200,000 to those arrested.

KENTUCKY

Bogus ‘Auto Bonds’ Discovered

The Kentucky Office of Insurance in Frankfort reported a Washington state company is selling Kentuckians bogus “auto bonds,” claiming that the product is a viable substitute for mandatory automobile insurance. The practice was uncovered after an employee from a Louisville lending institution contacted KOI.

The Global Healings Society, owned by Joseph-Michael Gardinier, offers products via its Web site to those who pay a membership fee. For a $300 annual payment, purchasers were issued a “financial responsibility agreement” that buyers are told serves as a replacement for auto insurance. Under the terms of the bond, the group promises to pay the auto claims of any member. The bonds may be marketed as “The Auto Bond” or “Community Financial Bond.”

Regulators in other states have charged the group with unauthorized, unlicensed and fraudulent insurance sales. In June, the Florida attorney general’s office charged Gardinier and Global Healings $550,000 in fines and restitution to affected consumers. Other states, including Nevada, Oregon, Montana and Washington, have taken action against the group.

Central City Councilman Guilty in Workers’ Comp Scheme

Danny W. Miller, a Central City, Ky, councilman, pleaded guilty in the U.S. District Court Owensboro, Ky. to bilking the federal government out of more than $100,000 in workers’ compensation benefits during a four-year period. He filed false statements, faxed a false benefits statement and used a fake U.S. Department of Labor seal.

According to the Henderson, Ky., D.A. Gleaner’s sentencing is scheduled for Dec. 19. Federal prosecutors have promised to ask for less than the maximum of 40 years in prison in exchange for Miller’s guilty plea. Under the terms of the plea, Miller will be required to pay $107,693 in restitution.

In 2004, Miller faxed an outdated benefits statement to a bank as part of a loan application. Miller also used a forged seal of the U.S. Department of Labor on a fake press release between January 2003 and November 2004, according to court records.

Miller was elected to the Central City Council in 2002, amid some controversy over his record. He pleaded guilty in 1997 to theft and insurance fraud and was given a one-year suspended sentence, two years’ probation and ordered to pay $6,600 in restitution. Gov. Paul Patton later restored his rights.

NORTH CAROLINA

Felons Bonded Out, Apprehended on Additional Fraud Charges

Terry Tew and John Daniel Clapper, both of Clinton, N.C., were apprehended by the Sampson County, N.C. Sheriff’s Office for taking out fraudulent insurance policies on water craft and several pieces of heavy equipment.

The two men were already out on bond and awaiting trial on multiple counts of insurance fraud and obtaining property by false pretenses.

According to the Sampson Independent, Tew was charged with six counts each of insurance fraud and obtaining property by false pretense, as well as one count of altering serial numbers and fraudulently burning a dwelling. His bond was set at $75,000.

Clapper was already charged with one count each of insurance fraud and obtaining property by false pretense. Bond on those charges was set at $10,000.

Topics USA Auto Fraud