Four North Carolina residents were arrested this month for their roles in an auto insurance fraud-ring scheme.

According to North Carolina Department of Insurance officials, Rayon Artis partnered with three of his friends -- Arturo Carmen, Jermaine Keys, and Shawna Smith -- to stage auto accidents in order to submit false claims to insurers. The team proved to be highly effective; through their efforts, the foursome were able to net more than $100,000 in false claim payments over the course of four years.

As the ringleader of the bunch, Artis was charged with five counts of conspiring to obtain property by false pretenses. His three accomplices were charged with one count each.

To whom do the four owe the thanks? Diligent anti-fraud efforts by GMAC Insurance Company led to the suspicions. The case was then reported to North Carolina's Department of Insurance investigators, who then followed up with their own investigation and assisted several other governmental agencies in making the arrests.

North Carolina's Department of Insurance features one of the more robust anti-fraud units in the country. It employs 20 sworn law enforcement officers dedicated to investigating claims of insurance fraud. In 2007, these investigators saw more than 525 cases successfully closed with more than $14.5 million in restitution and recoveries, 53 criminal convictions, and 109 arrests.

Interested in more fraud news and in-depth articles? Head over to Claims' fraud channel for more information.

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