Insurance scheme uncovered
Colleton accident reports prove to be no accident
WALTERBORO — At first glance, certain drivers and certain Colleton County roads appeared more prone to car accidents than others.
But an alert office manager inside the Colleton County Fire and Rescue department did a little more digging into the hundreds of ambulance reports filed over a two-year span and found it was more than a coincidence that many of the same people were reporting injuries from wrecks on the same roads.
"The same people every year were having a wreck," Fire and Rescue Director Barry McRoy said. "Some of them were in wrecks with the same people year after year."
The department contacted the state Attorney General's Office, which learned insurance companies already were investigating individual claims against many of the same people. The State Law Enforcement Division was contacted and, over time, investigators unraveled a massive scheme that has netted 16 convictions so far, with some 20 cases still pending.
Previous story
Three plead guilty in claims case, published 10/10/08
"This is probably the biggest staged accident scheme we've ever seen in the state of South Carolina," Allison Dean Love, executive director of the South Carolina Insurance News Service said.
Love suspects it's even bigger than a similar scheme broken up in the Dillon and Florence areas 10 years ago. In that case, people defrauded insurance companies for about $320,000 by beating each other with 2-by-4s and throwing one another into trees and bushes to make it look like they had been in car wrecks.
Love said they don't know the total amount involved in the Colleton case, but she said it will likely be higher than in the Dillon and Florence scam.
"It's just crazy what people will do to get insurance money, and they will get caught," Love said.
To offer tips
Anyone who knows about a case of insurance fraud can report it to the S.C. Insurance Fraud Hotline at 1-888-95-FRAUD.
Officials say they expect to see more of these and other types of fraud cases with the economy in poor shape.
"It's not happening just in Colleton County, it's happening all over the state," said Margaret Fleming, a special investigator for the S.C. Farm Bureau who investigated one of the Colleton cases. "I expect them to definitely be on the rise."
That translates into higher premiums for insured drivers.
"These people that are involved in this ring are costing you," Fleming said. "They are hitting you where it counts: in the checkbook."
Those convicted in Colleton County range in age from 21 to 43. Some are related. Authorities say they're not sure how people were recruited into the scheme, but they say the lure of easy money no doubt played a role.
The scheme was relatively simple: Run an older car into a tree and claim that someone or something ran you off, then say a bunch of your friends and relatives were injured while in the car with you in order to claim more money, court records show.
One woman, 39-year-old Felicia Michelle Gibson, told authorities she was traveling along Featherbed Road with her two sons when another car knocked her car off the road and into a creek. Gibson told authorities that she and her sons climbed out of a rear window before the car submerged.
Authorities, however, found no skid marks or other evidence of a collision. Once the car was pulled from the creek, they found that the back windows weren't rolled down far enough for Gibson to climb out.
A jury found Gibson guilty of presenting a false claim for payment over $1,000. She was sentenced to serve 45 days in jail.
Since then, 15 others either have been convicted or have pleaded guilty to similar charges.
McRoy said fake injury reports tied up their ambulances on several occasions.
"The paramedics can't help the people who really need the help," he said.
Love said the law mandates anyone who knows about insurance fraud must report it.
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Comments
This article has 12 comment(s)
Posted by moonpie on November 21, 2008 at 5:26 a.m. (Suggest removal)
Amazing!
Posted by theronce on November 21, 2008 at 7:04 a.m. (Suggest removal)
I think some people steal just because they can. Most are so dumb to keep doing the same thing repeatedly, thinking that everyone else is dumb.
Posted by NativeSon on November 21, 2008 at 7:11 a.m. (Suggest removal)
These creeps deserve far more than 45 days in jail. They should spend the next 20 years behind bars!
Posted by cwmcpa on November 21, 2008 at 7:27 a.m. (Suggest removal)
Come on folks, this is nothing but "Spreading the wealth around" and it will be legal in about 3 months.
Posted by sig on November 21, 2008 at 7:44 a.m. (Suggest removal)
Love said the law mandates anyone who knows about insurance fraud must report it.
Yea right! I have reported fraud to numerous government agencies and nothing happens! Try reporting fraud to any government agency and see what action they take. They protect the criminals!
These fraud artists should be giving money to everyone in S.C. because, as the article states, our rates rise!
Posted by allisondeanlove on November 21, 2008 at 9:03 a.m. (Suggest removal)
To read about the Top 8 Most Outrageous Cases of Insurance Fraud in 2008, link to www.scinsnews.com
Last week Governor Sanford proclaimed as "Insurance Fraud Awareness Week" in South Carolina. These cases are an example of what insurance companies and the state are working together on to combat fraud in our state.
Here is an excerpt from our news release about what the state is doing to combat fraud:
"Insurance fraud in South Carolina is causing honest people to pay far too much for insurance coverage," said Attorney General Henry McMaster. "We have a strong team that is vigorously prosecuting these crimes in our state, but citizens need to be alert and contact local law enforcement if they see evidence of insurance fraud. Criminals should not be allowed to make us all pay the bill for their crimes." According to the Attorney General’s Insurance Fraud Division’s 2007 report, there were 712 complaints of insurance fraud reported. There were 94 criminal convictions and 72 civil remedies. The total amount of insurance fraud reported in 2007 was nearly $8.4 million. Richland County reported both the highest number of complaints made (79) and the highest total amount of insurance fraud reported with $3,670,190.14.
Posted by SCHoser on November 21, 2008 at 9:11 a.m. (Suggest removal)
If these people put the same amount of effort towards honest work, they would go places. Beating each other with 2 x 4's and getting thrown into a tree??? A day's work has GOT to be better than that! 45 days in jail is not a deterrent! Start prosecuting people to the fullest extent of the law-make examples of them!
Posted by armymom on November 21, 2008 at 9:16 a.m. (Suggest removal)
sig: half the time it's the government agencies committing the frauds...
theronce: apparently they are too dumb to know everyone else isn't that dumb..
Like I'm gonna run myself into a tree for a thousand bucks. I wonder how many of these dumbellics accidentally killed themselves? Geeze!
Posted by IPTREY on November 21, 2008 at 9:37 a.m. (Suggest removal)
I'm glad they caught these guys. The phrase "compunctum cito corrumpit sibi junctum" comes to mind. Reminded me of some important points to get across to people about being involved in legitimate accidents.
http://www.scinjurylawjournal.com
Posted by iceman1978 on November 21, 2008 at 2:15 p.m. (Suggest removal)
If you're at fault in an accident involving more than $500 in damages, you should lose your license for 90 days. No exceptions. After accident number two, you lose it for six months. If you're at fault in an accident causing injury, two to seven years. If someone dies as a result of the driving negligence on someone else, they should get fifteen years minimum and lose their license permanently.
If you get caught driving without a license and/or insurance, you should get 30 days in jail and your vehicle impounded on the spot. If you don't have insurance within 90 days your vehicle should become the property of the State.
Posted by blk_avenger on November 21, 2008 at 5:59 p.m. (Suggest removal)
Iceman, I was with you until the end of your statement. I don't think driving without a license or insurance is jail worthy. Maybe a fine, but jail should be for real criminals.
Posted by 1963 on November 21, 2008 at 9:07 p.m. (Suggest removal)
They're friggin' theives and crooks! Put them under the jail.