Fraud Roundup

Arsonists ‘light up’ in pool of gasoline

Musa Shteiwi and his son Essa had a clear criminal vision for their Steak Thyme Subs eatery. According to the Coalition Against Insurance Fraud, they wanted to torch the West Chester, Ohio, food outlet for insurance money. But they lacked a basic job skill: Nobody knew how to set a decent arson fire, not even their hired arsonist.

After four unsuccessful attempts, Musa and Essa never saw any insurance money. They were dead from a gasoline explosion, and arsonist Joshua Hunter was in jail.

Jordanian-born Musa and Essa had promised Hunter a $60,000-dollar-a-year job if he’d burn down the place. Hunter agreed and tried to set three fires over the next six weeks in the summer of 2006, but never figured how to get a good blaze going.

Musa and Essa played dumb as word got out about the repeated fires. But they stuck with Hunter despite the screw-ups. The pair decided to make the job so easy that even Hunter couldn’t botch it. They went inside and spread gasoline around themselves. Hunter only had to come in later that night and start the fire.

Tragically, Musa and Essa had less arson talent than Hunter: The pair took a smoking break — while standing in a pool of gasoline. They lit up their cigarettes, igniting an explosion that burned both men over 80 percent of their bodies and buckled a wall of the restaurant. They died within weeks. Hunter pleaded guilty to his part in the plot, and faces up to 10 years in prison when sentenced.

Former La. agent booked

A former Oakdale, La., insurance agent in late December 2006 was arrested and issued a cease and desist order on charges of fraud and misappropriation of funds, the Louisiana Department of Insurance reported.

John Craig Welch was arrested by the State Police Insurance Fraud Unit and booked into the Bossier Sheriff Correctional Facility in Benton on charges of felony theft.

An investigation and audit revealed that Welch misappropriated premiums and other funds from his agency totaling over $20,000. It is alleged that after Welch collected policyholders’ premiums and issued receipts he pocketed the money and generated an agency check to pay the insurance company. In addition, received bonus checks from the agency for the premiums he collected.

No policyholders were believed to have been harmed; all premiums were paid to the insurance companies that issued the policies.

Welch held a life/health license from January 1998 until May 2002 and a property/casualty license from February 1997 until May 2003. He was issued a solicitor license in July 1993 that was later changed to an agent license.

Two arrested for Katrina related fraud

Two Louisiana men were arrested Dec. 8, 2006, on felony charges related to Hurricane Katrina. The Louisiana State Police Insurance Fraud and Auto Theft Unit charged a Jefferson Parish man and a St. Bernard Parish man of committing insurance fraud in separate incidents.

The LSP alleged that Milton Joseph of S. Bengal Road, Metairie, defrauded his insurance company by claiming his 2001 Chevrolet Silverado truck was flooded in the storm. Joseph claimed he left the truck parked at a residence on Filmore Street in New Orleans when he was forced to evacuate. Although the vehicle could not be located after the storm, Joseph’s insurer acted in good faith and paid $11,088.91 to the vehicle’s lien holder and $1,457.65 to Joseph. The investigation revealed, however, that Joseph was in possession of the truck after he filed the flood claim.

It was discovered he took the vehicle to a mechanic in Baytown, Texas, in May 2006 but failed to come get it after it was repaired. An inspection revealed no evidence the truck had flooded or had been stolen. Joseph was arrested on one count each of insurance fraud and felony theft and was booked into the Jefferson Parish Correctional Center.

The LSP allege that in a separate incident Anthony J. Wallace of E. St. Bernard Highway, Chalmette, submitted falsified hotel receipts to his insurance company in an attempt to inflate a claim for additional living expenses under his homeowners policy. Wallace worked for the Bienville House, a hotel in downtown New Orleans, when Hurricane Katrina struck the city. As a hotel employee he was allowed to stay free of charge, which he did for about two and a half months.

However, troopers say that Wallace fabricated three hotel receipts indicating he was charged over $6,600 and submitted them to his insurer as part of his claim for additional living expenses. The Bienville House confirmed the receipts were false and Wallace’s claim was denied. He voluntarily surrendered and was booked into the St. Bernard Parish Prison on one count of insurance fraud.

Houston nurse sentenced

Texas Mutual Insurance Company reported that a Houston nurse pleaded guilty in Travis County’s 299th Judicial District Court to workers’ compensation fraud-related charges. Brenda Hernandez was sentenced to five years of deferred adjudication. The court also ordered Hernandez to perform 200 hours of community service and repay $14,499 in fraudulently obtained benefits, plus costs.

According to Texas Mutual, Hernandez reported a job-related injury while working as a licensed vocational nurse assigned to the Harris County Jail by JWS Health Consult-ants Inc. of Houston. She said she was unable to work and Texas Mutual began paying her workers’ comp income benefits. The insurer said Hernandez was working for four different companies in Minnesota while receiving benefits.

La. agent told to cease and desist

An Albany, La., insurance agent was arrested and issued a cease and desist order on charges of fraud, forgery and misappropriation of funds, the Louisiana Department of Insurance reported. Roberta Ann Schaferkot-ter was booked into the Ascension Parish Jail in Donaldsonville on five counts of forgery and two counts of insurance fraud.

Schaferkotter allegedly failed to remit premiums and submitted fraudulent life insurance applications to her employer in order to obtain cash proceeds. It is also alleged she bound fraudulent life insurance coverage for at least 31 clients without their knowledge, listing herself and her relatives as the beneficiaries. It is also thought that she made loans against these fraudulent policies and received payment through their cash surrender.

Schaferkotter obtained a property/casualty license in October 1991 and a life/health license in May 1991, both of which were suspended by the current action.

Topics Texas Louisiana