Fraud Roundup

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Mo. police arrest two people in fake license scam
Authorities in Grain Valley, Mo. have arrested two people suspected of making illegal license tags.

Police believe the large-scale operation has already brought in $10,000 to $20,000 for those involved. The investigation into the operation started 18 months ago and resulted in the arrest last fall of the owner of an auto business in Kansas City.

According to officials, people often seek to purchase the fake tags, which can be made on a home computer, when they can’t afford to register and license their vehicles. Before obtaining tags legally, owners must pay sales and property taxes and show proof of insurance.

Grain Valley police made the two arrests when they served a search warrant at a home. Police were joined by officials from the Missouri Department of Revenue, who also recovered evidence.

Officials believe the fake tags were being printed in the home and sold somewhere in Kansas City. The auto body business owner arrested last fall, Harun Whitley, has been charged with more than a 12 counts of forgery.

According to a court document, police obtained a search warrant after an undercover officer bought a fake temporary tag from Whitley’s business on two separate occasions. Nineteen fake temporary permits were found during the search.

Temporary tags obtained legally cost $12 and require a bill of sale dated within the past 30 days as well as proof of a safety inspection.

Source: The Kansas City Star, www.kansascity.com

Son to testify against parents in Mich. arson trial
A Kalamazoo man who police say was part of a family scheme to burn down a mobile home, then collect the insurance money, is set to testify against his parents at trial, according to a report by the Coalition Against Insurance Fraud.

Christopher Smith, 38, has agreed to testify against Gordon and Nancy Smith at arson trials scheduled this month. The agreement is part of a deal Smith made with prosecutors when he pleaded guilty last week to a reduced charge, arson of insured property. If convicted, he could receive up to ten years in prison when sentenced March 20 in Ottawa County Circuit Court.

Kansas agent’s probation revoked, judge reinstates prison sentance
Wichita resident Jeffrey Lopez, a former insurance agent, convicted of two felonies in 2001, had his probation revoked and was ordered to serve a prison sentence.

Kansas Securities Commissioner Chris Briggs says that Lopez continued to solicit money for fraudulent investments. Those charges were filed in Montgomery County District Court last November, and Lopez pleaded guilty to three felony counts: one count each of securities fraud, violation of an administrative order of the Securities Commissioner and theft by deception.

Lopez was on probation for two felony convictions made in 2001 for securities fraud in Butler County.

Montgomery County District Court Judge Judd Dent sentenced Lopez to the maximum term allowed by sentencing guidelines.

Butler County District Court Judge Charles M. Hart revoked Lopez’s probation and reinstated an 18-month sentence for the 2001 convictions.

Athens insurance agent sentenced to four years for theft
An investigation by the Ohio Department of Insurance has led to a four-year sentence for former Athens insurance agent William Tad Cuckler, 47, Director Ann Womer Benjamin announced. Cuckler, who pled guilty to insurance theft on December 15, 2005 stole more than $200,000 from 12 clients. He was sentenced in the Athens County Court of Common Pleas.

Cuckler’s insurance license was revoked October 24, 2005 for misappropriating funds from sales of insurance products (annuities). He used some of the stolen money to pay back some of his earlier victims. When he was indicted, Cuckler still owed more than $130,000. However, as a result of the prosecution, Cuckler has made full restitution to all the remaining victims. He pled guilty to three counts of theft and one count of aggravated theft.

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