N. Charleston Woman Charged with Identity Theft, Fraud

United States Attorney W. Walter Wilkins stated today that Shirley T. Watson, age 24, of North Charleston, was charged in a three-count federal Indictment with unlawful use of a Social Security Number, identity fraud, and aggravated identity theft. Federal investigators allege that Watson used the personal identification of her grandparents and a roommate without their knowledge to apply for more than $200,000.00 in student loans.

The maximum penalty Watson faces if convicted on all counts is 17 years in federal prison, plus a fine of $500,000.00.

Mr. Wilkins stated that the case was investigated by inspectors of the United States Postal Inspection Service and that he has assigned the case to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.

The United States Attorney stated that all charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.

Greenwood County Man Pleads No Contest to Fraud Involving Aircraft Parts

United States Attorney W. Walter Wilkins stated today that Jerry Roy Comeaux, age 67, of Ninety-Six, South Carolina, pled no contest to a felony charge of fraud involving aircraft parts, a violation of Title 18, United States Code, Section 38. United States District Judge Henry M. Herlong, Jr., of Greenville, accepted the plea and ordered Comeaux to pay the victims restitution of approximately $403,000. Comeaux is to serve three years probation. The United States agreed to dismiss charges against Vicky Comeaux, age 54, as part of the agreement.

According to facts presented in court, Comeaux operated Quality Aircraft Support, a business that repaired and overhauled aircraft parts. Comeaux was licensed by the Federal Aviation Administration (FAA) as a repair station up until April 2006. At that time, he voluntarily surrendered his license; however, he continued to send out parts with fraudulent forms that gave the appearance that Quality Aircraft Support was licensed by the FAA. These parts were shipped to various commercial carriers in Texas, Florida, Illinois, Ohio, and other parts of the country.

Mr. Wilkins stated that the case was investigated by agents of the Department of Transportation, Office of the Inspector General, the Defense Criminal Investigative Service, and the Federal Aviation Administration. Assistant United States Attorney Winston D. Holliday, Jr., of the Columbia office prosecuted the case.

Seneca Man Guilty of $150K Fraud

United States Attorney W. Walter Wilkins stated today that Antonio V. Robinson, age 40, of Seneca, South Carolina, pled guilty in federal court to five counts of fraud involving the misuse of a Social Security Number. Robinson faces a possible sentence of five years incarceration on each count. He will be sentenced later by United States District Judge Henry M. Herlong, Jr., who accepted the plea of guilty.

Mr. Wilkins advised that Mr. Robinson used the Social Security Number of a former business partner to obtain loans from Wachovia, Advanta Bank Corporation, Wells Fargo, American Express, and Discover Financial Services. When investigators discovered the fraud, all of the loans were in default, with losses totaling approximately $150,000.00.

The case was investigated by Special Agent Rick Kerns of the United States Secret Service and is being prosecuted by Assistant United States Attorney David C. Stephens of Greenville.

Attorney General's Insurance Fraud Division Releases 2008 Report

Attorney General Henry McMaster has issued the 2008 annual insurance fraud report.

During 2008 the Attorney General’s Insurance Fraud Division secured 135 convictions for insurance fraud, a 44 percent increase over 2007 with 94 convictions. This number represents the most convictions by the Insurance Fraud Division since its creation in 1994.

“With the state of our economy, more and more people in South Carolina are turning toward insurance fraud. They think it’s a quick fix for their personal financial situation and don’t think it affects anyone else,” said Edwin Constant, president of the South Carolina Insurance Fraud Investigators, “In reality it affects everyone in the state.”

Last year there were 815 insurance fraud complaints received by the Insurance Fraud Division, compared to 712 complaints received in 2007. The total amount of insurance fraud reported was more than $3.3 million, a drop from the previous year with $8.4 million.

Nearly $400,000 in fines and restitution were ordered paid by the courts. This brings the total to nearly $78 million in insurance fraud reported and nearly $6 million in monies collected since the South Carolina Attorney General's Insurance Fraud Division began prosecuting insurance fraud cases in 1995.

Highlights from the Attorney General’s 2008 Insurance Fraud Report:

• The greatest number of complaints were due to automobile insurance fraud (57%) and personal/commercial property fraud (12%) followed by workers’ compensation fraud (11%) and health/medical fraud (10%).
• Cases have come from all around the state of South Carolina and break down by region as follows:

◦ Low Country – 37% (175)
◦ Pee Dee – 22% (106)
◦ Piedmont – 22% (103)
◦ Midlands - 19% (88)

• Charleston County reported both the highest number of complaints made (29) and the highest total amount of insurance fraud reported with $ 921,756.49 reported in insurance fraud.


The Insurance Fraud Division currently has five attorneys and four South Carolina Law Enforcement Division investigators working to stomp out insurance fraud in South Carolina.

The South Carolina Insurance Fraud Hotline, 1-888-95-FRAUD, is available 24 hours a day, 7 days a week for reporting insurance fraud, which can be a felony in South Carolina. All reports remain confidential.

For a complete copy of the 2008 Annual Report from the Office of the Attorney General's Insurance Fraud Division or to review county data, link to the South Carolina Insurance News Service at www.scinsurance.net.

13 Convictions for Auto Fraud in Colleton County Brings Total to More than 30

Another 13 convictions for insurance fraud in Colleton County last week brought the total to more than 30 since last September. On Thursday, May 14, the following defendants each pled guilty to one count of the lesser-included offense of Presenting False Claims for Payment more than $1,000 but less than $5,000 before The Honorable Perry Buckner in Colleton County:

• Nicole Elliott, age 25, of 106 Del Ray Drive, Walterboro;
• Nicole Elliott, age 25, of 106 Del Ray Drive, Walterboro;
• Tamika Elliott, age 32, of 8387 Charleston Highway, Walterboro;
• Gladys Michelle Middleton, age 26, of 559 Orangeburg Road, Summerville;
• Sherie Lisa Middleton, age 23, of 189 Beach Road, Walterboro;
• Jason Jarmal Givens, age 29, of 502 King Street, Walterboro;
• Verdie Elaine Hugie, age 46, of 215 Calloh Drive, Walterboro
• Rickie Hugie, age 48, of 7000 Middle Street, Columbia;
• Sharon Denita Donaldson, age 26, of 203 Corideau Street, Walterboro;
• Timothy Tyrone Behling, age 23, of 49 Enchanted Lane, Walterboro;
• Dexter Raynard Landy, age 21, of 500 Bowman Lane, Walterboro; and
• Preston Tremaine Roberts, age 19, of 3399 Cooks Hill Road, Walterboro.

Also, defendants Phyllis Simmons, age 48, of 8249 Ritter Road, Walterboro, and Jamie Brown, age 35, of 40 Pentgage Court, Yemassee, each pled guilty to two counts of the lesser-included offense of Presenting False Claims for Payment more than $1,000 but less than $5,000. All defendants were originally indicted with Presenting False Claims for Payment, $5,000 or more.

On or about March 29, 2005, defendants Nicole Elliott, Tamika Elliott and Phyllis Simmons presented or caused to be presented false claims for payment to Safe Auto Insurance Company totaling over $10,000. They claimed they were involved in a car accident after an unknown vehicle ran them off Cooks Hill Road in Walterboro causing their car to catch fire. Investigation revealed the wreck was staged and the fire was intentionally set. Nicole Elliott had a prior conviction for operating an uninsured vehicle. Judge Buckner sentenced Nicole Elliott to four years imprisonment suspended with probation for four years and ordered her to pay restitution of $4,423 to Safe Auto and $283 to the South Carolina Department of Health and Human Services. Tamika Elliott was sentenced to four years imprisonment suspended with probation for four years and ordered to pay restitution of $1,636 to Safe Auto and $647 to Colleton County Fire-Rescue. Simmons was sentenced on this count to four years imprisonment suspended with probation for five years and ordered to pay $1,388 to Safe Auto and $647 to Colleton County Fire-Rescue. Two co-defendants in this case pled guilty previously.

Defendant Phyllis Simmons also presented or caused to be presented false claims for payment to Permanent General Assurance Group totaling about $20,000 on or about February 15, 2007. She said that she struck a tree after she lost control of her car at Blackcreek & Meewville Roads in Colleton County, but investigation revealed the wreck was staged. She was sentenced to four years imprisonment suspended with probation for five years on this count and ordered to pay restitution of $1,876 to Permanent General and $656 to Colleton County Fire-Rescue. She was also ordered to pay restitution of $6,628 to Peak Property & Casualty Company as part of her agreement. Her sentences were concurrent.

On or about April 17, 2006, Defendant Jamie Brown presented or caused to be presented false claims for payment to Peak Property & Casualty Company totaling over $7,000. He claimed he was a passenger in a car that was hit by an unknown vehicle, run off Cooks Hill Road in Walterboro, and burst into flames. Investigation revealed that the wreck was staged and the fire was intentionally set. Brown had prior convictions for assault and battery of a high and aggravated nature and narcotics and weapons charges. Judge Buckner sentenced him on this count to five years imprisonment suspended to six months imprisonment and four years probation. He was ordered to pay restitution of $1,397 to Peak Property. A co-defendant in this case pled guilty previously.

Defendant Jamie Brown presented or caused to be presented false claims for payment totaling over $8,000 to Peak Property & Casualty on or about April 26, 2007. He claimed that he was involved in another car accident in Walterboro after the driver swerved to miss a deer, but investigation revealed the wreck was staged. He was sentenced to five years imprisonment on this count suspended to six months imprisonment and four years probation. He was ordered to pay $1,406 to Peak Property on this count. His sentences were concurrent. A co-defendant in this case also pled guilty previously.

On or about July 2, 2007, defendants Gladys Middleton, Sherie Middleton and Jason Givens presented or caused to be presented false claims for payment to Bristol West Insurance Group. They claimed they were involved in a car accident on Confederate Highway in Walterboro, but investigation revealed the wreck was staged. Givens had a prior conviction for resisting arrest. Judge Buckner sentenced them to four years imprisonment suspended with probation for four years. Gladys Middleton was ordered to pay restitution of $2,608 to Bristol West, $719 to Colleton County Fire-Rescue and $738 to Health and Human Services. Sherie Middleton was ordered to pay $2,779 to Bristol West and $349 to Health and Human Services. Givens was ordered to pay $4,641 to Bristol West and $580 to Lodge Rescue Squad.

On or about August 15, 2007, defendants Verdie Hugie and Rickie Hugie presented or caused to be presented false claims for payment to State Farm Insurance in a total amount over $35,000. They claimed they had been involved in a car accident on Mt. Carmel Rd. in Walterboro, but investigation revealed the wreck was staged. Verdie Hugie had a prior conviction for shoplifting and was sentenced to four years imprisonment suspended with probation for five years. She was ordered to pay restitution of $13,677 to State Farm. Rickie Hugie had a prior record of assault and battery and was sentenced to four years imprisonment suspended with probation for five years. He was ordered to pay $11,461 to State Farm. A co-defendant in this case pled guilty previously.

On or about September 4, 2007, defendants Sharon Donaldson, Timothy Behling, Dexter Landy and Preston Roberts presented or caused to be presented false claims for payment to Nationwide Insurance Company. They claimed they were involved in an accident also on Mt. Carmel Rd. after an unknown vehicle ran them off the road and into a tree. However, investigation revealed the wreck was staged. Donaldson had prior convictions for assault, breach of peace, and assault and battery of a high and aggravated nature. Behling, Each were sentenced to four years imprisonment suspended with four years probation. Donaldson was also ordered to pay restitution of $3,398 to Nationwide, $562 to Colleton County Fire-Rescue and $124 to Health and Human Services. Behling and Landy were each ordered to pay $3,398 to Nationwide and $562 to Colleton County Fire-Rescue and Roberts was ordered to pay $3,398 to Nationwide and $637 to Colleton County Fire-Rescue.

These cases were investigated by the South Carolina Law Enforcement Division and the National Insurance Crime Bureau and prosecuted by the South Carolina Attorney General's Office.

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

For more information on insurance fraud in South Carolina or for an interview call 803-252-3455 or e-mail alove@scinsnews.com.

Fake Checks Still Cashing in on South Carolinians

The South Carolina Department of Consumer Affairs continues to receive calls and other inquiries, from banks and consumers, concerning checks that appear to be real, but turn out to be phony. Fake check scams defraud thousands each year and consumers lose an average of $5,000. Con artists are looking to gain your trust, so they are friendly and very convincing. They are especially dangerous during this economic downturn because they prey on consumers who are facing financial hardships and are hoping for a miracle.


Sample Fake Check Scams:
∑ The con artist claims to be from another country and says it’s too hard to make payment directly, so they have someone who “owes them money” mail the victim a check or even a US Postal Money Order. The amount of the check is more than owed, so the victim is instructed to deposit the check and wire the excess back, after keeping a sizable fee for their services. The check or money order is later found to be a fake and the victim is out the money they wired back to the con artist. Remember, there is no legitimate reason for someone to ask you to wire money back.

∑ You've won a lottery and receive a cashier’s check or money order. You’re asked to return some of the money to pay for taxes, legal fees or other expenses. You deposit the check into your account and it appears legitimate so you mail them a check to pay for “taxes.” A few days later, the bank calls and says the check you deposited was a fake and now you need to pay back the money. As a reminder, international checks can take 10 to 15 days or even more to clear. Another reminder: international lotteries are illegal!

Can banks tell if a check is not legitimate?
These checks look very real. Tellers receive a great deal of training on how to spot these checks, but even seasoned bank tellers may be fooled because the scammers have gotten that good.

Why does the bank allow consumers to draw on the money?
Under federal law, banks must make the funds deposited available to their customers usually within one to five days. But just because you can withdraw the money doesn’t mean the check is good, even if it’s a cashier’s check. It could be a forgery, which can take as much as two weeks to detect.

What are consumer responsibilities with checks?
Consumers are responsible for the checks they deposit, because they deal directly with the person who gave them the check. If the check bounces, the consumer owes the bank the money he or she withdrew. A bank may sue to recover the money and law enforcement may also get involved if they believe the consumer was involved in the scam.

The bottom line?
If you receive a check or Money Order from someone or some organization that you do not know, be suspicious. Check it out with the Department of Consumer Affairs. If you insist on depositing the check into your bank account, at least wait until the bank notifies you that the check has cleared or not cleared before withdrawing any money from that account.

For more information on fake check scams or other consumer issues, please contact the South Carolina Department of Consumer Affairs, 803.734.4200 or toll free in South Carolina (1.800.922.1594), or visit the SCDCA website: www.scconsumer.gov.

59-Year-Old Woman Fakes Burglary, Pleads Guilty to Insurance Fraud

Nancy Moser, 59, of 4769 Mt. Carmel Road, Lancaster, South Carolina, pled guilty to Forgery, no dollar amount, which carries a penalty of up to three years confinement and to Presenting a False Claim for Payment, less than $1,000, which carries a penalty of zero to 30 days confinement and/or a fine up to $500. Judge John C. Hayes, III of Lancaster County sentenced Moser on the Forgery charge to one year suspended to six months probation and on the Presenting a False Claim for Payment charge to 30 days suspended. The sentences will run concurrently.

The defendant was originally charged with Forgery no dollar amount, and Presenting a False Claim for Payment over $5,000.

Moser reported that a burglary occurred at her residence in Lancaster County on February 5, 2007. She submitted an inventory loss form to Nationwide Insurance for over $9,000 in losses to include furniture, appliances and electronic equipment. An investigation revealed that the retail stores indicated on the loss form did not sell the items listed as stolen in the insurance claim. A majority of the items listed as stolen were found at Ms. Moser’s daughter’s home.

Ms. Moser also submitted a police report to Nationwide Insurance during the claims process. On that report was a handwritten note to indicate other items were stolen that were not listed on the report. This note was signed, Captain Andy Rollins of the Lancaster County Sheriff’s Office. Captain Rollins confirmed that he did not write the note. The original police report does not contain this note.

This case was prosecuted by the South Carolina Attorney General's Office.

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 $1,000 in total increased insurance premiums, taxes and cost of goods and services according to the Coalition Against Insurance Fraud.
• There were 712 complaints of insurance fraud reported to the South Carolina Attorney General's Insurance Fraud Division in 2007. There were 94 criminal convictions and 72 civil remedies.
• The total amount of insurance fraud reported to the South Carolina Attorney General's Insurance Fraud Division in 2007 was nearly $8.4 million.
• Cases have come from all around the state of South Carolina and break down by region as follows:
Piedmont - 28% (115)
Low Country - 24.5% (100)
Pee Dee - 24.5% (100)
Midlands - 23% (95)
• 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.

Policeman’s Accomplice Pleads Guilty to Insurance Fraud

Columbia, S.C. – April 20, 2009 – James David Morris, 40, of 439 Chester Street, Coward, South Carolina pled guilty in Florence County to Burning Personal Property to Defraud an Insurer. The charge carries a punishment of one to five years in prison. Judge Michael Nettles sentenced Morris to one year suspended to one year probation to terminate upon payment of restitution to State Farm Insurance Company.

On or about July 8, 2008, Robert Brendon Smith, a former Olanta, South Carolina police officer, reported his 2001 Dodge Dakota Truck as stolen from 412 Gause Canal Road in Coward. The truck was valued at over $8,000. The vehicle was found completely burned. It was later determined that Morris had helped Smith burn the truck due to the vehicle’s mechanical problems. The claim to State Farm Insurance Company was eventually withdrawn. Morris' co-defendant, Smith, pled guilty to the same charge on March 2, 2009. The case was prosecuted by the South Carolina Attorney General's Office.


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.

► There were 712 complaints of insurance fraud reported to the South Carolina Attorney General's Insurance Fraud Division in 2007. There were 94 criminal convictions and 72 civil remedies.

► The total amount of insurance fraud reported to the South Carolina Attorney General's Insurance Fraud Division in 2007 was nearly $8.4 million.

► Cases have come from all around the state of South Carolina and break down by region as follows:

Piedmont - 28% (115)
Low Country - 24.5% (100)
Pee Dee - 24.5% (100)
Midlands - 23% (95)

► 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.

Latta Man Guilty of Fraud

United States Attorney W. Walter Wilkins stated that William Lashon Campbell, a/k/a Waylon Maurice Campbell, age 26, of Latta, pled guilty to fraud.

Campbell was employed by a local finance company, and stole customers’ personal and account information. He used the stolen data to manufacture and pass counterfeit commercial checks between April and September 2007. A search of Campbell’s residence was conducted by the Latta Police Department in November 2007, at which time additional counterfeit checks, counterfeit identification cards, and stolen credit card account numbers were retrieved.

Mr. Wilkins stated the maximum penalty Campbell can receive is a fine of $250,000.00 and imprisonment for 10 years. He will be sentenced at a later date.

The case was investigated by the Latta Police Department and agents of the United States Secret Service. Assistant United States Attorney William E. Day, II, of the Florence office handled the case.

MYRTLE BEACH MAN ADMITS MARRIAGE FRAUD CONSPIRACY

United States Attorney W. Walter Wilkins stated today that Timothy Staie, age 26, of Myrtle Beach, pled guilty in federal court in Florence to conspiracy to commit marriage fraud. United States District Judge Terry L. Wooten accepted the plea and will sentence Staie at a later date.

In July 2006, federal agents initiated an investigation into a marriage fraud scheme involving U.S. citizens and Israeli nationals residing in Horry County, South Carolina. The investigation , dubbed ”Operation Wedding Planner,” revealed that U.S. citizens were being paid $1,400.00 to $4,000.00 to marry the Israelis, who would then apply for permanent resident status in the United States based on the marriages to U.S. citizens.

Evidence presented in court established that Hanna Logasi was a citizen of Israel, trying to become a U.S. citizen. Staie was paid to marry Logasi on April 19, 2005, in Horry County. The couple then filed forms with immigration authorities, claiming that they lived together as husband and wife. Staie admitted in court that he never lived with Logasi, and that the marriage was arranged only for Logasi to receive authorization to stay in the country.

Logasi is a fugitive in the case.

Mr. Wilkins stated the maximum penalty Staie can receive is a fine of $250,000.00 and imprisonment for five years.

The case was investigated by agents of the Bureau of Immigration and Customs Enforcement. Assistant United States Attorney William E. Day, II, of the Florence office handled the case.

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.

ORANGEBURG COUNTY WOMAN FACES FEDERAL FRAUD CHARGE

United States Attorney W. Walter Wilkins announced that a Federal Grand Jury indicted Tammie Rene Williamson, 39, of North, South Carolina, for collecting and spending Social Security benefits to which she was not entitled. Authorities allege that after the death of her common law husband in 1997, Williamson received more than $136,000 in Social Security benefits by falsely representing that she had custody and care of the couple’s minor child.

The maximum penalty for this offense is a fine of $250,000 and imprisonment for ten years.

This case was investigated by the Social Security Administration and is assigned to Assistant U.S. Attorney Anne Hunter Young of the Columbia for prosecution.

The United States Attorney stated that all charges in this Indictment are merely accusations and the defendant is presumed innocent until and unless proven guilty.

Myrtle Beach Man Indicted for Check Kiting Fraud

Columbia, South Carolina ---- United States Attorney W. Walter Wilkins stated today that Scott William Halterman, age 47, of Myrtle Beach, was charged in a federal Indictment with bank fraud, a violation of Title 18, United States Code, Section 1344.

Halterman is accused of kiting checks between accounts he controlled at two area banks, creating a loss of nearly $200,000.00 before the banks recognized the fraud.

The maximum penalty Halterman could receive is a fine of $1,000,000.00 and imprisonment of 30 years.

Mr. Wilkins stated that the case was investigated by agents of the United States Secret Service and that he has assigned the case to Assistant United States Attorney William E. Day, II, of the Florence office for prosecution.

The United States Attorney stated that all charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.

Former DSS Finance Director Charged with Embezzling $5.5 Million

U.S. Attorney W. Walter Wilkins stated today that former Department of Social Services Finance Director Paul Timothy Moore, age 61, of Columbia, and nine other individuals, were charged in a federal Complaint with theft of federal program funds, mail fraud, wire fraud, and conspiracy, for their respective roles in an alleged scheme to embezzle more than $5.5 million dollars from DSS.

The Complaint and arrest warrants were signed this morning by United States Magistrate Judge Paige J. Gossett in Columbia. An affidavit presented by a United States Secret Service Agent outlined the scheme, in which Moore allegedly used his position as the agency’s Finance Director to authorize the issuance of approximately 761 DSS checks between May 2004 and October 2008, in the approximate average amount of $7,000.00 each. The checks were made payable to names allegedly provided by a co-conspirator, Jonathon Moses, age 42, of Columbia, who recruited the named individuals to cash the checks and split the proceeds.

Eight other people were likewise identified as having cashed some of the checks and /or having recruited others into the scheme: Herbert McKie, age 27, Aisha Leheva Crumpton, age 23, Tyra L. Goodson, age 36, Nova Kathleen Johnson, age 40, and Sandra Denease Smith, age 45, all of Columbia; and Gwendolyn Robinson, age 41, Ortyse S. Mazone, age 37, and Calandra Fabary Thomas, age 38, all of Aiken.

Moore and Moses were arrested this morning and remain in custody until making an initial appearance in federal court in Columbia at 2:30 today.

Wilkins said he expects additional arrests. “Clearly many other people appear to be involved. Many people may have cashed these checks, based on information we have obtained thus far in the investigation,” said Wilkins. “I would encourage anyone with information to contact the Secret Service here in Columbia. I would also strongly encourage anyone who is involved to come forward; it would certainly be in their best interest.” The phone number for the Columbia office of the Secret Service is (803) 772-4015.

The maximum possible penalty for theft of federal program funds and conspiracy is ten years and a fine of $250,000.00; mail fraud and wire fraud each carry a maximum possible sentence of 20 years and a $250,000.00 fine.

Mr. Wilkins stated that the case is being investigated by agents of the United States Secret Service and SLED, and that he has assigned the case to Assistant United States Attorney Debbie Barbier of the Columbia office for prosecution.

The U.S. Attorney stated that all charges are merely accusations and that all defendants are presumed innocent until and unless proven guilty.

Tips on How to Avoid Consumer Fraud

From Western Union:

Beware of deals or opportunities that seem too good to be true.
Never use money transfer services when sending money to someone you don't know personally.
Do NOT use money transfer services to pay for online auction purchases.
Never send money to pay for taxes or fees on foreign lottery winnings.
Beware of someone who is giving you a check or money order and asking you to wire money back.

The maxim "If it's too good to be true, it probably is" works in most cases.

Insurance Fraud Awareness Week

Governor Mark Sanford has proclaimed November 10-14 as Insurance Fraud Awareness Week in South Carolina. Insurance fraud is a felony in South Carolina and can result in jail time. According to the National Insurance Crime Bureau studies indicate 10 percent or more of property/casualty insurance claims are fraudulent.

While there are organized fraud rings throughout South Carolina, other people you wouldn't suspect, such as a next-door neighbor, co-worker or close acquaintance, are also the causes of insurance fraud and increased insurance premiums.

"We need the general public to fight fraud in our state and not tolerate it," said Brandolyn Pinkston, Administrator of the South Carolina Department of Consumer Affairs. "The message is a simple yet powerful one: We all pay for insurance fraud - it's time to fight back."

Officials encourage consumers to use the South Carolina Insurance Fraud Hotline to report cases to the Attorney General's Insurance Fraud Division. The South Carolina Insurance Fraud Hotline (1-888-95-FRAUD) is available toll-free, 24 hours a day, seven days a week.

What is Insurance Fraud?

• Misrepresentation of the number of miles on an auto insurance application.
  
• Failure to report an accurate medical history when applying for health insurance.
  
• Fake or exaggerated injury claims to avoid work and draw workers’ compensation pay outs.
  
• Falsification or overstatement of injuries in an auto accident to obtain a large settlement or damages award.
  
• Staged auto accidents that result in claims for non-existent or exaggerated injuries.
  
• Fabrication of relationships to obtain life insurance benefits.
  
• Exaggeration of the amount and value of items stolen from a home, business or automobile.

Fraudulent E-mails Claim to Be From the FDIC

E-mails fraudulently claiming to be from the FDIC are attempting to trick
recipients into installing unknown software on personal computers. These
e-mails contain the subject line: "Funds wired into your account are
stolen."

Recipients of the fraudulent e-mail should not reply and should not attempt
to open the attached file.

For additional information about safe online banking and avoiding online
scams, click here.

For your reference, FDIC Special Alerts may be accessed from the FDIC's Web
site.