Texas Family Pleads Guilty in Scheme to Defraud Aflac

Seven family members, including a former Hidalgo County district court probation officer, have been convicted for their roles in a $3 million scheme to defraud American Family Life Assurance Company (Aflac).

In a news release from the U.S. Attorney’s Office for the Southern District of Texas, U.S. Attorney Kenneth Magidson, said Homer Cedillo Jr., a former Hidalgo County District Court probation officer, along with his mother, two aunts and three cousins, pleaded guilty on Nov. 14 in McAllen to wire fraud in a scheme that involved thousands of false injury claims.

A total of 36 persons were charged with conspiracy and wire fraud in mid-June 2011 in connection with a multi-million dollar scheme to defraud Aflac involving the filing of thousands of false injury claims under Aflac’s Accident-Only Supplemental Insurance Plan.

In addition to Homer Cedillo, of Edinburg, Texas, the six others who pleaded guilty were Mary Cedillo, of Edinburg; and Martha Ortega, Yolanda Segovia, Candida Chavez, Lori Chavez and Anissa Chavez of McAllen, Texas.

Magidson said the defendants delivered lists of fake accidents and injuries to two doctors in Reynosa, Mexico. The doctors then prepared accident reports for each fake injury. About 21,000 false injury claims were sent to Aflac’s claims department in Columbus, Ga.

Sentencing has been set for Feb. 21, 2012. The defendants face up to 20 years in prison without parole and a $250,000 fine.

The investigation leading to the charges was conducted by FBI with valuable assistance from Aflac’s Special Investigations Unit in Columbus, Ga. Assistant United States Attorney Greg Saikin is prosecuting the case,

Ten people pleaded guilty in the case in early November and 20 others pleaded guilty in early August.

Source: U.S. Attorney’s Office, Associated Press

Topics USA Texas