14 Charged in Michigan in $3M Insurance Fraud Scheme

Fourteen people have been charged in conjunction with an insurance fraud and theft scheme uncovered by a joint investigation by the Michigan Department of Insurance and Financial Services (DIFS) and the Ogemaw County Sheriff’s Office.

The Michigan DIFS said the 14 individuals have been accused of submitting nearly $3 million in false insurance claims.

The charges relate to an alleged scheme to defraud AFLAC where the accused individuals submitted fake claims of injury to AFLAC indicating that they had received treatment at the Ogemaw Chiropractic Clinic.

Nearly $3 million in false claims were paid out by AFLAC for treatments that never occurred before the insurer filed an insurance fraud complaint with DIFS.

According to the DIFS, Ogemaw County Sheriff’s Office and the DIFS Fraud Investigation Unit (FIU) found sufficient evidence for the Ogemaw County Prosecutor’s Office to issue charges against the 14 individuals listed below. The investigation is ongoing and additional charges may be filed in the future.

The individuals charged are:

• Katie Mae Quigley, 40, of West Branch;
• Anthony Lee McArthur, 36, of Prescott;
• Richard Lee McArthur, 38, of West Branch;
• Christina Marie Tanner, 51, of Pinconning;
• Jeffrey Scott Kimball, 48, of Standish;
• Stephanie Marie Witte-Mason, 37, of Alger;
• Carol Christine Smith, 49, of Rose City;
• Tina Marie Friemark, 50, of West Branch;
• Amanda Nichole Hebert, 28, of Rose City;
• Samantha Marie Petty, 45, of West Branch;
• Melissa Marie Spencer, 39, of West Branch;
• Ashley Marie Ehinger, 30, of West Branch;
• Patricia Ann Hebert, 50, of Rose City
• Julie Marie Peter, 44, of West Branch.

All 14 individuals were charged with one count of Insurance – Fraudulent Acts, a felony that carries a maximum penalty of four years in prison, a $50,000 fine, and the payment of restitution.

As a result of the investigation, two defendants, Friemark and Ehinger, were also each charged with two counts of Identity Theft, a felony that also carries a maximum penalty of four years in prison, a $50,000 fine, and the payment of restitution for each count.

All 14 individuals were arraigned in 34^th Circuit Court in Ogemaw County and are pending initial hearings in front of Judge Richard Noble.

The DIFS Fraud Investigation Unit investigates criminal and fraudulent activity related to the insurance and financial markets and works with the Attorney General and other law enforcement to prosecute these crimes.

Source: Michigan DIFS

Topics Fraud Michigan