Former Police Officer Pleads Guilty to Insurance Fraud

Robert Brendon Smith, 29, 428 Chester Street, Coward, South Carolina waived venue and pled guilty yesterday in Marion County to Burning Personal Property to Defraud Insurer. The charge carries a punishment of one to five years in prison. The defendant was indicted in Florence County. Judge Michael Nettles sentenced the defendant to three years suspended to one year probation, 100 hours public service and restitution to State Farm Insurance Company of $275.

The defendant is a former Olanta police officer.

On or about July 8, 2008, Smith reported a 2001 Dodge Dakota truck as stolen from 412 Cause Canal Road in Coward, South Carolina within Florence County. The truck was registered to Smith's mother, but was routinely used by Smith and his wife. The truck was valued at over $8,000. It was later determined that the truck was not stolen, but had purposely been burnt by Mr. Smith and a co-defendant. Mr. Smith later confessed to law enforcement to burning the vehicle with his co-defendant due to the vehicle’s mechanical problems. The claim to State Farm Insurance Company was eventually withdrawn.

The South Carolina Insurance News Service reports a few interesting facts related to insurance fraud:

• Insurance fraud costs nearly $120 billion a year, with healthcare fraud at $85 billion a year and property and casualty insurance fraud at $30 billion a year, according to the Insurance Information Institute.
• Each year consumers spend about $300 per household just in additional insurance premiums, according to the National Insurance Crime Bureau and about $1,000 in total increased insurance premiums, taxes and cost of goods and services according to the Coalition Against Insurance Fraud.
• The South Carolina Insurance Fraud Hotline 1-888-95-FRAUD is available toll-free, 24 hours a day, 7 days a week.
• Insurance fraud can be "hard" or "soft." Hard fraud occurs when someone deliberately fakes an accident, injury, theft, arson or other loss to collect insurance money illegally. Soft fraud occurs when someone inflates a claim or underestimates the number of miles driven on an insurance application.

Report Insurance Fraud to the South Carolina Insurance Fraud Hotline 1-888-95-FRAUD - All reports remain confidential.