Insurance Agent Charged with Theft of Premium Payments
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 On July 12, 2022, Thomas Scheeren was arrested in Armstrong County. According to the criminal complaint, the Department of Insurance investigated the owner of the Scheeren Insurance Group in Ford City after the Department received complaints concerning transactions handled by Scheeren. The Insurance Department allegedly determined that Scheeren misappropriated or failed to remit more than $12,000 in premium payments to various insurance companies, falsified insurance documents, and operated as an agent after his license expired on May 31, 2020. The complaint stated that the investigation identified four customers who, beginning in April 2016, remitted insurance premium payments to Scheeren, but later discovered that they had no coverage. According to the complaint, the insurance companies confirmed that the policies in question did not exist, and / or that the insurers did not receive premium payments from Scheeren. An investigation allegedly revealed that some of the premium funds had been deposited into agency accounts, but were not remitted to the insurance companies. When interviewed, Scheeren allegedly admitted that he had received insurance premium payments from the victims, but could not explain why the policies did not exist. Scheeren was charged with one count of Theft by Failure to Make Required Disposition of Funds Received (F3), one count of Insurance Fraud (F3), one count of Tampering with Records of Identification (M1), one count of Misapplication of Entrusted Property and Property of Government or Financial Institutions (M2), and one count of Theft by Deception (F3).
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 On July 28, 2022, Danielle Adams and Joshua Shotts were arrested in Jefferson County. According to the criminal complaint, on July 6, 2021, Adams filed a claim with Nationwide Insurance for damage to the front end and passenger-side windshield of her Jeep Grand Ch erokee. Adams allegedly claimed that her Jeep was damaged when she swerved to avoid hitting a deer and the Jeep struck a tree at approximately 2:30 AM on July 6. The complaint stated that both Adams and Shotts admitted to investigators that the damage to the Jeep was not accidental. Adams and Shotts allegedly told investigators that they agreed to stage the collision so that Adams could collect claim proceeds from Nationwide. The claim was denied. Adams and Shotts were charged with two counts of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F3).
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 On July 21, 2022, Shanita Pickens was arrested in Dauphin County. According to the criminal complaint, on August 16, 2021, Pickens’ Progressive Insurance policy, which covered her 2017 Chevrolet Equinox, was canceled for non-payment. On August 24, 2021, at 2:10 PM, Pickens allegedly used Progressive’s mobile app to reinstate the policy. During the reinstatement process, Pickens allegedly told the insurer that the vehicle had no prior damage and had not been involved in any accidents when her coverage lapsed from August 16 to August 24, 2021. The complaint stated that on August 29, 2021, at 11:36 AM, Pickens reported to Progressive that her vehicle incurred damage from a hit-and-run accident that occurred at approximately 3:00 AM that day. According to the complaint, on August 30, 2021 at 3:07 PM, GEICO contacted Progressive investigators and stated that a vehicle owned by one of GEICO’s policyholders had been in an accident with a vehicle driven by Pickens. The complaint stated that the crash occurred at 3:00 AM on August 21, 2021, and that both drivers exchanged information at the accident scene. According to the complaint, the GEICO insured claimed that Pickens said that she needed to retrieve her driver’s license from a friend’s house, then left the scene and did not return. The complaint further stated that metadata from text messages exchanged by Pickens and the other driver on the evening of the accident revealed that the crash occurred on August 21, 2021, during the lapse in Pickens’ coverage. Progressive denied the claim. Pickens was charged with one count of Insurance Fraud (F3) and one count of Insurance Fraud (M1).
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 On July 14, 2022, Steffan Sisson was arrested in McKean County. According to the criminal complaint, on December 8, 2021 at 12:57 PM, Sisson used GEICO’s online app to file a claim for damage to the rear of his vehicle. Sisson allegedly claimed that his 2020 Kia Stinger struck a pole as he was backing the car out of his driveway on December 7, 2021. Sisson allegedly provided photographs of the damage to GEICO. The complaint stated that investigators subsequently found that Sisson had filed a previous claim with GEICO for damage to his vehicle, which occurred on July 7, 2021. According to the complaint, investigators compared photos from both claims and determined that the damage was the same. During an interview, Sisson allegedly admitted to investigators that he did not repair the damage from the July 7th accident, and had included the prior damage in his recent claim. GEICO denied the second claim. Sisson was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F3). |
 On July 14, 2022, Stephen Norton was arrested in York County. According to the criminal complaint, on July 20, 2021, Norton obtained coverage from Progressive Insurance for a 2017 Nissan Maxima. On August 20, 2021, Norton allegedly used Progressive’s mobile app to report that he had accidentally driven the Nissan over a curb at approximately 9:30 PM on August 19, 2021, severely damaging the vehicle’s undercarriage. The complaint stated that investigators discovered that Norton’s vehicle was involved in another accident prior to May of 2021. According to the complaint, employees of an automobile dealership confirmed that Norton’s damaged vehicle was parked at the dealership from May 18, 2021 to June 26, 2021. The dealership allegedly provided investigators with photographs taken during a June 26, 2021 inspection of the damaged Nissan. Progressive determined that the damage occurred prior to the inception of Norton’s coverage and denied the claim. Norton was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt / Theft by Deception (F3), and one count of Criminal Use of a Communication Facility (F3). |
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 On July 14, 2022, Emtiaz McClain was arrested in Somerset County. According to the criminal complaint, on November 20, 2020, at approximately 4:38 PM, McClain purchased an insurance policy from National General Insurance Company for her 2017 Buick Enclave. On November 24, McClain allegedly reported to National General that her Enclave had been involved in a single vehicle accident the day before. During a recorded call with National General, McClain allegedly stated that a friend had been driving McClain’s vehicle without her permission when the accident occurred. The complaint stated that National General’s claim handlers reviewed photos of the damage that McClain submitted. The photo metadata allegedly revealed that the accident actually occurred prior to the inception of McClain’s coverage. National General denied the claim. McClain was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F3). |
 On July 13, 2022, Tatiana Allen was arrested in Cumberland County. According to the criminal complaint, on August 2, 2021, Allen and her fiancé reinstated their automobile insurance policy with Progressive Insurance Company. On August 3, 2021, at 4:27 PM, Allen allegedly lowered the policy deductible from $2,500.00 to $500.00. The complaint stated that at 4:56 PM, Allen again contacted the insurer and reported that her fiancé had just been involved in an accident. However, metadata from photos taken at the accident scene allegedly revealed that the accident occurred before Allen lowered the policy’s deductible. Progressive denied the claim. Allen was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (M1). |
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 On July 12, 2022, Cortenay Richards was arrested in Montgomery County. According to the criminal complaint, on February 25, 2022, at approximately 8:06 PM, Richards added her 2011 Nissan Maxima to her father’s Progressive Insurance policy. On March 21, 2022, at approximately 3:14 PM, Richards allegedly contacted Progressive and reported that her Nissan Maxima had been vandalized. The complaint stated that Progressive investigators discovered that two prior claims had been filed with GEICO for damage to the Nissan. According to the complaint, the damage to the vehicle was identical in photos of both GEICO claims, and in the recent Progressive claim. Richards allegedly maintained that a body shop repaired the earlier damage to her vehicle. However, the complaint stated that personnel from the body shop denied making the repairs. Progressive denied Richards’ March 21 claim. Richards was charged with two counts of Insurance Fraud (F3), two counts of Criminal Attempt / Theft by Deception (F3), one count of Criminal Use of a Communication Facility (F3), and one count of Insurance Fraud (M1). |
 On July 6, 2022, Prince Ellis was arrested in Berks County. According to the criminal complaint, a fire ravaged Ellis’ mobile home in December 2020, rendering it uninhabitable. In January 2021, Ellis allegedly purchased a policy for his mobile home from Foremost Insurance, a subsidiary of Farmers Insurance. The complaint stated that during his call to Foremost, Ellis denied that his home had incurred any prior damage or losses. Foremost then issued a policy covering repairs and replacement costs of the home and contents. The complaint further stated that in May 2021, Ellis called Foremost and reported that a fire had damaged his home earlier that month. Ellis allegedly submitted photos of the damage to Farmers in support of his claim. According to the complaint, metadata pulled from the photos revealed that the pictures were taken in January of 2021. Emergency responders and witnesses from the mobile home park allegedly confirmed that the fire occurred in December of 2020, which was prior to the inception of Ellis’ policy. Foremost (Farmers) denied the claim. Ellis was charged with one count of Insurance Fraud (F3), one count of Insurance Fraud (M1), one count of Attempted Theft by Deception (F2), one count of Theft by Deception (F3), and one count of Criminal Use of a Communication Facility (F3). |
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 On July 6, 2022, Charles Edward Gummo III was arrested in Mifflin County. According to the criminal complaint, on September 13, 2021, GUMMO obtained a liability auto policy from The General Insurance Company for his 2013 Lincoln. Gummo allegedly indicated on the policy application that he had not been involved in any vehicle accidents or incidents during the previous 36 months. That same day, Gummo allegedly contacted The General and reported that his Lincoln was damaged when it collided with another vehicle at a gas station. Gummo allegedly provided investigators with a photo of the damage. The complaint stated that metadata revealed that the photo had been taken on September 12, 2021, the day before the inception of Gummo’s policy. The claim was denied. Gummo was charged with one count of Insurance Fraud (F3) and one count of Insurance Fraud (M1). |
 On July 1, 2022, Heather Ellinger was arrested in Clearfield County. According to the criminal complaint, on September 13, 2021, Ellinger was involved in a single vehicle accident while driving her 2013 Hyundai Veloster. Police and a tow truck responded to the scene of the accident. At approximately 9:30 AM that same day, Ellinger allegedly purchased coverage for her Hyundai from Progressive Insurance Company. The complaint stated that on September 14, Ellinger filed a claim and advised the insurer that her Veloster had been involved in an accident earlier that day. Ellinger allegedly sent photographs of the damaged vehicle to Progressive. According to the complaint, the photo metadata contained a time stamp of 12:38 PM on September 13. Investigators obtained copies of the police crash report and towing company records, which allegedly revealed that the accident had occurred at approximately 7:34 AM on September 13, 2021, which was prior to the inception of Ellinger’s policy. The claim was denied. Ellinger was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F3).
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 On July 26, 2022, William Holmes was sentenced in Lawrence County after entering a negotiated plea to one count of Criminal Attempt / Theft by Deception (M2). On February 10, 2021, at approximately 9:00 PM, Holmes crashed his 1997 GMC Sierra pickup truck into a tree. The vehicle was insured under his girlfriend’s Nationwide Automobile Insurance policy, which listed Holmes as an excluded driver. On February 11, Holmes’ girlfriend filed a claim with Nationwide for the accident. The girlfriend allegedly reported that she had been driving the truck when the accident occurred. Holmes confirmed the statement to Nationwide. However, investigators spoke to the driver of the tow truck, who maintained that Holmes was the driver and was the only person present at the crash scene. During a subsequent interview, Holmes admitted that he had been driving the truck when the crash occurred. Holmes was sentenced to 18 months of probation. He was ordered to serve 50 hours of community service and to pay the costs of prosecution. |
 On July 21, 2022, Lomount Mills was sentenced in Dauphin County after entering a negotiated plea to one count of Criminal Attempt / Theft by Deception (M1). On October 9, 2020, Mills filed a claim with Nationwide Mutual for the theft of his 2017 Ford Focus ST. Mills claimed that his vehicle was parked outside of a store when someone stole it. Mills told the insurer that he called his wife and asked her to come and get him, then began walking to the agreed-upon location. Mills claimed that while he was walking, he found his vehicle abandoned along a highway ramp, approximately two or three miles from the theft site. Mills claimed that when he tried to start his vehicle, the engine seized up, so he had the vehicle towed to an automobile dealership. A service technician at the dealership noted that the vehicle had significant oil leakage around the oil filter and that the engine had no oil. A Nationwide adjuster inspected the vehicle and noted that the entire rear of the vehicle was coated with a thick oil residue. An investigation revealed that Mills told the dealership that he had been driving the vehicle when he heard a “clicking” noise. Mills told the service technician that he added oil to the vehicle, but it would not start. The representative at the dealership advised that the engine problem was not covered by the vehicle warranty because Mills had been operating the vehicle without oil. Nationwide denied the claim. Mills was sentenced to a period of 2 to 24 months of probation and was ordered to serve 50 hours of community service. |
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 On July 21, 2022, Tyalif Grimes was sentenced in Montgomery County after entering a negotiated plea to one count of Insurance Fraud (F3). On May 3, 2020, Grimes was involved in a two-car accident which damaged both vehicles. Grimes purchased coverage from Progressive Insurance on May 7. On June 25, he submitted a claim for damage to his vehicle, which he said was the result of a June 22 deer strike. Grimes acknowledged that his car had been involved in a previous accident on May 3, but insisted that the earlier loss resulted in only minor damage to his car’s front bumper. Grimes maintained that the June 22 deer strike substantially damaged his vehicle’s hood, headlight, and one of the side support columns. Grimes provided multiple photos of the damage to Progressive. However, the driver of the other involved vehicle from the May 3 accident also filed a claim with Progressive and provided photos to the insurer. Progressive adjusters compared both sets of photos and determined that the damage to Grimes’ vehicle had occurred on May 3, before Grimes purchased his Progressive policy. Grimes was sentenced to a period of time served to 12 months, followed by two years of probation. He was ordered to serve 25 hours of community service and to pay all costs. |
 On July 19, 2022, Christopher Wilson was sentenced in Lancaster County after entering a negotiated plea to one count of Criminal Attempt / Theft by Deception (M1). On September 1, 2018, Wilson reinstated the lapsed Progressive Insurance Company policy covering his 2008 Mercedes-Benz C-300. Wilson told Progressive that his vehicle had not been in any accidents during the lapse period of August 27, 2018 through September 1, 2018. On September 3, 2018, Wilson added comprehensive and collision coverage to his policy, effective September 8, 2018. Wilson filed a claim with Progressive on September 14, reporting that his vehicle was damaged by water when he drove across a flooded roadway on September 11, 2018. During a recorded statement to the insurer, Wilson reiterated that the damage was caused by flooding on September 11. However, an investigation revealed that the vehicle’s engine sustained water damage on August 31, 2018, before Wilson added comprehensive and collision coverage to his Progressive policy. Wilson was sentenced to serve 24 months of probation. He was ordered to complete 50 hours of community service, and to pay a $250.00 fine and all court costs. |
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 On July 15, 2022, Holly Funkhouser and Lenny Brumbaugh were sentenced in Blair County, after they each entered a negotiated plea to one count each of Criminal Attempt / Theft by Deception (M1). On December 19, 2018, Funkhouser and Brumba ugh filed a claim with GEICO Insurance for damage to Funkhouser’s 2011 Chevrolet Malibu. That claim was denied. Funkhouser and Brumbaugh then obtained coverage for the Malibu from Liberty Mutual. On May 6, 2021, Brumbaugh contacted Liberty Mutual and inquired about filing a claim for recent damage to his vehicle. During the call, Brumbaugh was advised that his policy had a $1,000.00 deductible. Later that day, the policy deductible was lowered to $500.00, effective at midnight on May 7, 2021. On May 8, 2021, Funkhouser and Brumbaugh reported to Liberty Mutual that the Malibu was damaged while it was parked outside of Funkhouser’s workplace. During a claim investigation, Liberty Mutual located the earlier GEICO claim and determined that it appeared to involve similar damage to the Malibu. Funkhouser and Brumbaugh admitted to investigators that the Malibu was damaged previously and that they had misrepresented the facts of loss to Liberty Mutual. Both Funkhouser and Brumbaugh were sentenced to serve 24 months of probation. They were ordered to complete 50 hours of community service, and to pay a $100 fine and all prosecution costs. |
 On July 14, 2022, Nikita Walker was sentenced in Allegheny County after entering a negotiated plea to one count of Criminal Attempt / Theft by Deception (M1). On February 4, 2019, Walker obtained comprehensive and collision coverage for her 2006 Cadillac CTS from Liberty Mutual Insurance. On February 11, 2019, Walker filed a claim with the insurer for damages sustained to the rear driver’s side tail light and trunk area of her Cadillac. Walker indicated that the damages resulted from a hit-and-run accident, which occurred when her vehicle was parked at a friend’s house. Walker provided photographs of the damages to Liberty Mutual. When Liberty Mutual reviewed Walker’s prior claims information, the insurer discovered that Walker had filed a claim with Allstate on November 23, 2018, which appeared to have involved the same damage to her 2006 Cadillac CTS. Liberty Mutual investigators compared photos of the damage from both claims and determined that the damage was the same. Walker was sentenced to serve 6 months of probation and ordered to pay all cost. |
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During the month of July, four additional defendants received Accelerated Rehabilitative Disposition (ARD).
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Anti-Fraud Compliance - Reporting of insurance Fraud to Law Enforcement Agency
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Pennsylvania Bulletin Notice 2016-04 (issued April 30, 2016) reminded insurers of their obligations to report suspected arson or insurance fraud to law enforcement agencies within the Commonwealth. The bulletin also announced a decision by the Pennsylvania Department of Insurance to allow licensees to satisfy their reporting obligation when they electronically submit reports of suspected fraud to the National Insurance Crime Bureau (NICB).
On July 6, 2017, Pennsylvania began participating in this online service which enables member companies to electronically forward reports of suspected fraud to the Pennsylvania Office of Attorney General’s Insurance Fraud Section or other appropriate law enforcement agencies at the same time the companies report suspicious claims to the NICB. NOTE: The NICB is not a law enforcement agency. Therefore, a licensee cannot satisfy the fraud reporting requirement by submitting a non-electronic (paper) referral only to the NICB.
Important: When utilizing electronic filing through NICB, users should take careful note of the provided instructions regarding the “Party” to a claim. Information entered about a Party will only be transmitted to law enforcement if users select one of two options: “This Party was subject to an SIU investigation” or “This Party was subject to an enforcement action.” Some users have missed this notation about individual Party data and consequently have submitted incomplete information to law enforcement.
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