2 from N.C. Arrested on Numerous Charges of Insurance Fraud

North Carolina officials arrested two individuals on charges of insurance fraud and automobile title fraud this week.

Andrea Martinez Hernandez, 33, and Octavio Telles Segura, 30, allegedly share three Elizabeth City, N.C., addresses but are believed to actually reside in the Salisbury, Md., area.

Hernandez, arrested on Oct. 5, was charged with 12 counts of insurance fraud and 12 counts of automobile title fraud. She is being held at the Pasquotank County Jail in lieu of $525,000 secured bond.

Segura was also arrested Oct. 5, charged with nine counts of insurance fraud and eight counts of title fraud. He is being held at the Pasquotank County Jail in lieu of $425,000 secured bond.

The investigation into these two individuals continues, as Department of Insurance investigators and Pasquotank County sheriff’s deputies question their true identities.

Hernandez and Segura allegedly had numerous out of state addresses associated with them at the time of arrest, in addition to the three in Elizabeth City. The criminal charges against them stem from allegations that the two had more than 150 vehicles registered in their names spread amongst the three North Carolina addresses.

“We believe this case involves rate evasion and possibly identity theft,” said Commissioner Long. “We allege that these two individuals may be helping others to obtain registrations and insurance in North Carolina even though they live in another state. Unfortunately, because North Carolina has such low auto insurance rates, we have become a prime location for this type of insurance fraud.”

Department of Insurance investigators have been cracking down on this kind of fraud, known as rate evasion, for the last couple of years. A new law clarifying and specifically defining rate evasion as a crime passed during the 2007 session of the General Assembly.

Source: North Carolina Department of Insurance