Fraud of the Week

March 28, 2016

Claim Fraud—North Carolina

Amount: $649,506.15

 

A North Carolina man was sentenced to thirty months in prison and ordered to pay $649,506.15 in restitution for mail and wire fraud and filing false tax returns. The man filed multiple false claims to multiple insurance companies, claiming that neon signs were damaged and his film processing equipment was damaged by power surges from lightning. The total of the claims was $649,506.15 and involved five insurance companies over five or six years. He filed false claims claiming he replaced the equipment and failed to report the insurance proceeds as taxable income.