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JULY 2024
Brothers Charged with Fraud for Alleged Staged Accident Claims
On July 31, 2024, brothers Eric and Joel Shumar were arrested in Fayette County. According to the criminal complaint, on November 13, 2023, at approximately 12:00 PM, Eric Shumar’s 2002 Chevrolet Silverado pickup truck was damaged when the vehicle struck an open sewer hole on Main Street in Smock, PA. On November 14, 2023, Eric allegedly telephoned the insurer for the Franklin County Sewer Authority, Select Insurance Company, and advised that he had been driving on Main Street when it ran over a sewer hole causing his truck to stop abruptly. According to the complaint, Shumar told the insurance representative that the sewer hole cover popped up, damaging the Silverado’s front tire and frame and resulted in injuries to Eric and his brother Joel, who was a passenger in the truck. The brothers allegedly retained a local, personal injury attorney to assist them in making claims against Selective Insurance and Shumar’s vehicle insurer, Erie Insurance. The complaint stated that during the claims process, Erie took recorded telephone statements during which the Shumars’ attorney could be heard conferring with his clients and then relaying information about the accident to the insurance representative. According to the complaint, on November 22, 2023, Erie determined that Shumar’s policy did not have collision or comprehension coverage at the time of the accident, and therefore the insurer was not responsible for the damage to the truck. On November 27, 2023, the Shumars’ attorney allegedly notified Selective Insurance concerning the incident. The complaint stated that according to Selective’s Estimate of Record, the truck was declared a total loss, due to the poor mechanical condition of the vehicle prior to the incident. The complaint further stated that both insurers received bills for dozens of chiropractic visits for treatment of the brothers for injuries that purportedly resulted from the accident. According to the complaint, Selective Insurance conducted an investigation and obtained video footage of the incident captured by nearby building security cameras. The footage allegedly revealed that Eric initially drove his truck over a sewer hole cover that was slightly askew. The complaint further stated that the truck backed up and drove forward again until the front driver’s side tire landed in the sewer hole. According to the complaint, the video showed Joel Shumar getting out of the truck, then directing Eric until the truck’s tire was in the sewer hole. The complaint stated that Eric Shumar participated in an Examination Under Oath (EUO) conducted by Erie Insurance on February 9, 2024. During the transcribed proceedings, Erie’s attorney allegedly asked Shumar to fully describe the events and the injuries that Shumar purportedly incurred as a result of the November 13, 2023 accident. According to the complaint, Shumar’s testimony was consistent with the information that the insurer previously received during the claims process. The complaint stated that Erie’s attorney then showed Eric Shumar the video footage from November 13, after which Shumar’s testimony allegedly became incoherent and contradictory. According to the complaint, Shumar’s attorney subsequently invoked his client’s 5th Amendment protection and the EUO was concluded. Investigators interviewed the brothers on June 4, 2024. The Shumars allegedly admitted that the accident was staged and did not occur as had been described to the insurance companies. Eric Shumar also allegedly admitted that he had provided false testimony during the EUO. Both insurers denied the claims, which totaled approximately $12,500.00. Eric Shumar was charged with one count of Perjury (F3), two counts of Conspiracy (F3), four counts of Insurance Fraud (F3), and two counts of Criminal Attempt / Theft by Deception (F3). Joel Shumar was charged with two counts of Conspiracy (F3) and two counts of Insurance Fraud (F3).
 
On July 31, 2024, Yesenia Melendez was arrested in Franklin County. The complaint stated that at approximately 4:39 PM on January 4, 2024, Melendez used her cellphone to obtain a new policy from Progressive Insurance Company, which included comprehensive and collision coverages, for her 2013 Chevrolet Cruz. The complaint further stated that shortly before she obtained the coverage, Melendez had been operating the Cruz when it rear-ended a Ford F250 at approximately 4:07 PM. When Chambersburg police responded to the collision, Melendez allegedly provided the officer with insurance information for an expired Progressive Insurance policy. The complaint stated that Melendez subsequently advised the officer that she had provided the wrong insurance information and showed the officer her phone, which contained information for her new Progressive policy. According to the complaint, the officer provided the policy information to the other driver, who later filed a claim with Progressive. During the claim process, Melendez allegedly advised Progressive that she obtained her insurance coverage before the accident occurred. However, investigators obtained a copy of the police accident report, which allegedly revealed that the crash occurred approximately 30 minutes before Melendez purchased her new policy from Progressive. The claim was denied. Melendez was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F3).
 
On July 30, 2024, Narendrakumar Patel was arrested in Lancaster County. According to the criminal complaint, on August 24, 2017, Patel obtained a business owner’s policy from MMG Insurance Company for two Rothsville Mini Market locations. The complaint stated that a billing error resulted in cancellation of the policy on October 15, 2022. The payment issue was resolved and coverage was reinstated on October 20, 2022, after Patel allegedly signed a Statement of No Loss. The complaint stated that on November 4, 2022, Patel contacted MMG Insurance and reported that an employee at the Rothsville Mini Market in Lititz advised him that a motor vehicle struck and damaged the market’s sign during the night. Patel allegedly stated that he owned the market since 2003 and had commissioned a local company to install the sign at the front of the property. According to the complaint, a representative of the Lititz Sign Company told investigators that Patel had a sign permit dated March 28, 2003, but the original sign was removed after a vehicle struck it. The complaint further stated that the sign company representative advised that after the original sign was removed, a replacement had not been installed until sometime between the end of September 2022 and the beginning of October 2022. The complaint further stated that investigators obtained Google Earth images of the location that were taken during the years 2008 and 2021. According to the complaint, no sign was present in front of the market in any of the images. When investigators interviewed Patel in the company of his attorney, Patel allegedly said that he made a “big mistake”. The claim was denied. Patel was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt / Theft by Deception (F3), and one count of Insurance Fraud (M1).
 
On July 30, 2024, Christopher Ayandokun was arrested in Delaware County. According to the criminal complaint, on December 11, 2021, Ayandokun purchased coverage from NJM Insurance for his 2013 Cadillac XTS. NJM allegedly canceled the policy due to non-payment, effective June 3, 2022. The complaint stated that Ayandokun was driving his Cadillac in Philadelphia, PA on June 13, 2023, when it rear-ended a 2010 Honda CRV. Ayandokun allegedly used his cell phone to send a digital copy of the Cadillac’s NJM policy declaration document to the Honda’s owner and provided a copy to the Pennsylvania State Police Trooper who responded to the accident. According to the complaint, the declaration document indicated that Ayandokun’s policy was active through December 11, 2023. The complaint stated that on July 24, 2023, an Altus Insurance agent contacted NJM to initiate a claim on behalf of the Honda’s owner. During the recorded conversation with the Altus agent, the NJM representative allegedly advised that Ayandokun’s coverage had been canceled in 2022. The complaint stated that the Altus agent sent NJM a copy of the police collision report and the policy declaration document that the Honda owner allegedly received from Ayandokun. Investigators interviewed the Honda CRV driver, who allegedly claimed that she called 911 immediately after her vehicle was rear-ended by Ayandokun’s Cadillac. Investigators compared the actual NJM policy declaration with the copy that Ayandokun allegedly provided to the driver of the Honda. According to the complaint, investigators found that the copy Ayandokun provided to the other driver was modified at 7:28 PM on July 28. NJM denied the claim. Ayandokun was charged with one count of Insurance Fraud (F3), one count of Forgery (F3), and one count of Tampering with Records or Identification (M1).
 
Malik Davis was arrested in New York on July 25, 2024, on a warrant that was filed in Dauphin County. Myles Davis was arrested in Dauphin County on July 26, 2024. According to the criminal complaint, the two arrests were the latest involving a group of individuals who took part in a scheme to illegally obtain Pennsylvania vehicle insurance at a much lower rate than they would have had paid for coverage in New York. The complaint stated that when Malik Davis obtained a vehicle policy from Esurance in February 2021, he listed a location on Byron Avenue in Harrisburg as the policy address. Myles Davis allegedly purchased vehicle coverage from State Farm Insurance on April 26, 2021, and provided the same Harrisburg address. According to the complaint, both men subsequently contacted their insurers and reported that their respective vehicles had been vandalized while parked at locations in New York. Investigations allegedly revealed that neither Myles Davis nor Malik Davis lived at the Byron Avenue location. Further, the complaint stated that both men submitted fraudulent proof of residency documentation to PennDOT in order to obtain Pennsylvania drivers’ licenses. Myles and Malik Davis were each charged with two counts of Insurance Fraud (F3), one count of Conspiracy to Commit Insurance Fraud (F3), one count of Tampering with Public Records (F3), one count of Unsworn Falsification to Authorities (M2), and one count of Insurance Fraud (M1).
 
On July 26, 2024, John Williams was arrested in Montgomery County. According to the criminal complaint, at 8:27 PM on May 5, 2023, Williams used the Progressive Insurance Company online portal to purchase an automobile policy for his 2020 Nissan Altima. On May 11, 2023, at 3:39 PM, Williams allegedly telephoned Progressive and reported that he had been driving his Nissan when it was involved in an accident with another vehicle at approximately 12:30 PM that afternoon. According to the complaint, Williams subsequently confirmed the time and date of the accident during several phone conversations with Progressive. On May 15, 2023, a Progressive claims representative returned a call to Williams, who allegedly admitted that the accident actually occurred on May 4, 2023, before he purchased his policy. The complaint stated that on June 24, 2024, investigators contacted State Farm Insurance and requested documents pertaining to an accident involving Williams and a driver insured by State Farm. According to the complaint, the claim records revealed that the State Farm insured driver reported that the accident occurred between 5:50 PM and 6:00 PM on May 4, 2023. The complaint further stated that investigators obtained a Philadelphia Police Department Computer Aided Dispatch record, which confirmed that emergency services were sent to a crash on May 4 that involved Williams. On July 22, 2024, Williams allegedly admitted to investigators that he purchased the Progressive auto policy after the May 4 accident occurred. Progressive denied the claim. Williams was charged with one count of Insurance Fraud (F3), one count 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 25, 2024, Ashleigh Stanczak was arrested in Allegheny County. According to the criminal complaint, on June 29, 2022, Stanczak filed a renter’s insurance claim with Lemonade Insurance Company for water damage. Stanczak allegedly claimed that the water leak resulted from work that property management was performing for an air conditioning unit at the Pittsburgh apartment complex where she lived. Stanczak allegedly stated that the leak damaged the interior of her apartment and some of her personal property. The complaint stated that Stanczak claimed that her apartment became unlivable, due to the damage and mold that resulted from the leak. Stanczak allegedly claimed that she had to move to another location until repairs were made. According to the complaint, Stanczak submitted multiple expense receipts to the insurer in support of her claim, including receipts for damaged furniture, mold remediation, and a 14-night stay at an Airbnb in Pittsburgh. She also allegedly provided the insurer with photographs of the damage to the interior of her apartment. However, according to the complaint, investigators spoke with managers of the apartment complex named in the claim and learned that Stanczak never lived there. The complaint stated that at the request of investigators, apartment staff reviewed the photos that the insurer received from Stanczak and immediately pointed out that the apartment depicted in the photos was not at their complex. The complaint further stated that staff members maintained that there had been no water leak at the specific apartment referred to in Stanczak’s claim. The tenants at the apartment in question allegedly confirmed that they did not know Stanczak, and that she had never lived with them. According to the complaint, further investigation revealed that the expense receipts Stanczak allegedly submitted to the insurer were fake or contained altered amounts. The claim was denied. Stanczak was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt / Theft by Deception (F3), and one count of Tampering with Records or Identification (M1).
 
On July 17, 2024, Jalisa Cash was arrested Dauphin County. According to the criminal complaint, on May 16, 2023, at 5:37 PM, Cash used Progressive Insurance Company’s online services to obtain a new policy for her 2018 Mitsubishi Outlander. At 2:41 PM on May 18, 2024, Cash allegedly reported to a Progressive representative that her Mitsubishi was involved in an accident with two other vehicles. Cash allegedly claimed that the crash occurred in Steelton on May 16, at approximately 7:30 PM. According to the complaint, Cash told the representative that a vehicle struck her Mitsubishi as it was pulling out of a gas station, and the collision caused the Outlander to strike another vehicle. The complaint stated that on May 17, 2024, Progressive took a recorded statement from an individual who advised that he had been driving his Cadillac in Steelton at approximately 5:00 PM on May 16, when it was involved in a crash with another Progressive insured driver. The caller allegedly stated that Steelton Police responded to the accident, and that he provided police with a few photos taken at the crash scene. According to the complaint, the metadata on the photos revealed that the pictures had been taken at 4:43 PM on May 16. When investigators questioned Cash, she allegedly stated that her policy was in effect at the time of the accident. However, the complaint stated that a Progressive representative obtained a copy of the police crash report, which listed the time of the accident as 4:32 PM on May 16, 2024, which was before Cash’s Progressive policy took effect. The complaint further stated that investigators learned that Dauphin County Emergency Services received a 911 call about the accident at 4:29 PM on May 16. Progressive denied the claim. Cash was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F3).
 
On July 17, 2024, Kenneth Wilson, Jr. was arrested in Dauphin County. According to the criminal complaint, Wilson sustained a lower back injury when he slipped and fell at his workplace on September 24, 2021. The employer’s insurer, Berkshire Hathaway, allegedly received a workers’ compensation claim for the accident that same day. The complaint stated that on September 25, 2021, Wilson was permitted to return to work with restrictions. The company was unable to accommodate the restrictions, so Wilson allegedly began to receive total temporary disability benefits payments of $1,130.00 per week. On April 11, 2022, Wilson allegedly completed Pennsylvania Department of Labor and Industry Bureau of Workers’ Compensation forms. According to the complaint, the completed forms indicated that Wilson had no additional information that would be relevant in determining his benefit amount. According to the complaint, the insurer conducted surveillance of Wilson, which revealed that he was in Georgia, working at a job similar to the one he had when he was injured. The criminal complaint stated that on August 16, 2022, Wilson’s former employer contacted his current Georgia-based employer and learned that Wilson started work on April 18, 2022, and began receiving wages during the pay period of April 17, 2022 to April 30, 2022. An investigation allegedly revealed that Wilson received a total of $19,885.71 in PA workers’ compensation benefit payments while he was working and receiving wages at the job in Georgia. According to the complaint, Wilson admitted to investigators that he knew it was wrong to receive a salary from a new job while he was receiving worker’s compensation benefits. Wilson was charged with one count of Insurance Fraud (F3), one count of Theft by Deception (F3), one count of Tampering with Public Records (M2), one count of Unsworn Falsification to Authorities (M3), and one count of Workers Compensation Fraud (F3).
 
On July 10, 2024, Ashley Mathieson was arrested in Mercer County. According to the criminal complaint, on December 28, 2022, Mathieson purchased coverage from MMG Insurance Company for her 2019 Hyundai Tucson. On January 11, 2023, Mathieson allegedly filed a claim with MMG for vehicle damage resulting from a January 10 deer strike. According to the complaint, a repair estimate showed Mathieson’s Tucson sustained damage to the right front bumper and fender areas, and repair costs totaled $1,626.44. During an investigation of the claim, MMG allegedly discovered that Mathieson’s vehicle was damaged previously by a deer strike on September 29, 2021, when Mathieson had coverage through National General Insurance Company. According to the complaint, MMG investigators obtained claim photos from Mathieson’s National General, which appeared to show the same damage that Mathieson reported in her recent MMG claim. The complaint stated that Mathieson had withdrawn her prior National General claim and did not repair the damage to her Tucson. According to the complaint, shortly after Mathieson filed the MMG claim, her insurance broker received a letter from MMG indicating that Mathieson had previously filed a deer strike claim with another insurer, which reflected the same damage as that of her recent MMG claim. The letter also included photos from both claims. According to the complaint, Mathieson’s insurance broker spoke with her about the letter, and Mathieson acknowledged that her vehicle had been damaged by a deer strike that occurred before she purchased her MMG policy. According to the complaint, Mathieson admitted to investigators that she did not tell the MMG insurance broker about the prior damage when she obtained her policy. Mathieson allegedly withdrew her claim and ended her MMG coverage. Mathieson was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (M1).
 
On July 9, 2024, Ortensia Gainey was arrested in Philadelphia County. According to the criminal complaint, Gainey’s mother owned and operated a 2014 Hyundai Accent GLS, which was insured by The General Insurance Company policy. Gainey’s mother passed away on October 27, 2022, and the vehicle policy coverage ended shortly thereafter. The complaint stated that at 8:34 PM on February 26, 2023, Gainey used her mother’s name and personal information to reactivate the prior General policy for her mother’s Hyundai. According to the complaint, Gainey represented herself as her mother when she electronically reported to The General that the Hyundai was stolen while parked outside of a family member’s home in Philadelphia. The complaint also stated that a theft report had been filed with the Philadelphia Police Department. During a recorded interview with a representative of The General on April 12, 2023, Gainey allegedly first identified herself as her mother, but later admitted that she was actually the daughter of the deceased policy owner. The complaint stated that Gainey told the representative that the Hyundai had been parked in front of her mother’s former home when the theft occurred. According to the complaint, Gainey subsequently admitted to investigators that she had reopened the General policy for the vehicle using her deceased mother’s information and subsequently filed the theft claim. The complaint stated that Gainey contacted the insurer and asked to withdraw the claim. Gainey allegedly advised that a family member had taken the Hyundai and agreed to return it. Gainey was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt / Theft by Deception (F3), one count of Criminal Use of a Communication Facility (F3), one count of Identity Theft (F3), and one count of Insurance Fraud (M1).
 
On July 9, 2024, Dominique Young was arrested in Philadelphia County. According to the criminal complaint, on February 17, 2022, Young purchased coverage for a 2017 Chevrolet Trax from the Progressive Insurance Company. The complaint stated that Young’s policy was canceled for non-payment on July 7, 2023. On July 10, Young’s Chevrolet allegedly was involved in a minor accident with another vehicle. The complaint stated that Young took photos at the accident scene, along with a photo of the other driver’s insurance card. At 6:53 AM on July 13, 2023, Young allegedly contacted Progressive, made a payment, signed a statement of no loss, and reinstated her lapsed policy. The complaint stated that on July 15, 2023, Young contacted Progressive and reported that she had been driving in Philadelphia at approximately 12:00 PM that day, when another vehicle struck her Chevrolet. A Progressive claim adjuster allegedly took a recorded statement from Young and asked her to provide copies of the accident photos she had taken. According to the complaint, investigators reviewed the photos and found that only two of them had metadata attached. According to the complaint, the metadata revealed that the photos were taken at 1:34 PM and 1:35 PM on July 10, 2023, which was during the lapse in Young’s coverage. Investigators interviewed Young, who allegedly admitted making false statements to Progressive in an effort to get the insurer to cover the accident. The claim was denied. Young was charged with one count of Insurance Fraud (F3), one count 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 9, 2024, Iesha Williams was arrested in Delaware County. According to the criminal complaint, on February 27, 2023, Williams contacted the Progressive Insurance Company to obtain an insurance quote for coverage of her 2019 Jeep Cherokee. On March 18, 2023, Williams allegedly phoned Progressive and obtained a policy covering her 2019 Jeep Cherokee. The complaint stated that on March 20, 2023, Williams contacted Progressive and claimed that she was driving her Jeep in Delaware the previous evening when the vehicle struck a pothole at approximately 10:15 PM, damaging the Jeep’s undercarriage. The complaint stated that Williams told the Progressive representative that she was alone in the Jeep when it struck the pothole and that there were no witnesses to the incident. Williams also allegedly stated that her vehicle had been towed from the scene. During a recorded telephone interview conducted by Progressive on March 21, 2023, Williams allegedly reiterated that the accident happened at approximately 10:15 PM on March 19. According to the complaint, Williams stated that her Jeep’s undercarriage was not damaged prior to the accident. She also allegedly claimed that she did not report the incident to police and did not take photos of the damage. The Progressive representative instructed Williams to upload a copy of the tow bill. The complaint stated that Williams provided a screenshot of a Select Auto Towing receipt, but the image lacked a visible date or time. On March 31, Progressive obtained a copy of the receipt from Select Auto Towing, which allegedly indicated that the Jeep was towed at 10:03 AM on February 27, 2023. According to the complaint, investigators confirmed the date and time of the tow with Select. Investigators interviewed Williams, who allegedly admitted to having obtained her Progressive policy after her Jeep was damaged by the pothole. Progressive denied the claim. Williams was charged with one count of Insurance Fraud (F3), one count 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 8, 2024, Lyanne Colon was arrested in Lancaster County. According to the criminal complaint, at 1:51 PM on October 13, 2022, Colon contacted her insurance agent and advised that she had been in an accident and needed to add her 2005 Acura TSX to her existing Progressive Insurance Company policy. The agent allegedly told Colon that the vehicle could be added, but that the prior accident would not be covered.  The complaint stated that the Acura was then added to Colon’s policy with liability coverage. According to the complaint, the owner of the other vehicle telephoned Progressive and reported that her 2012 Lexus had been rear-ended by a Progressive-insured driver. The caller allegedly stated that the driver of the striking vehicle provided a Progressive policy number and a phone number and then left the accident scene. During a subsequent recorded telephone interview conducted by Progressive, Colon allegedly stated that she had been driving her Acura in Lancaster when she dropped her coffee cup. According to the complaint, Colon claimed that while she was retrieving her cup, the Acura drifted forward and struck the Lexus. When the Progressive representative asked Colon for the time of loss, Colon allegedly stated that the accident occurred at approximately 2:30 PM. However, according to the complaint, Lancaster Police Department records revealed that the accident call came in at 1:46 PM, which was before Colon added her Acura to her vehicle policy. During a second recorded interview with Progressive, Colon allegedly claimed that she added her Acura to the policy just prior to the collision. When investigators reminded Colon that she previously told the insurer that the loss occurred at approximately 2:30 PM, Colon allegedly claimed that she was confused about the actual time of the accident. The claim was denied. Colon was charged with one count of Insurance Fraud (F3) and one count of Criminal Use of a Communication Facility (F3).
 
On July 30, 2024, Igor Dratch was sentenced in Dauphin County, along with businesses GRIG LLC and G & G Auto Body and Salvage. Dratch and the businesses were among 25 individuals and 21 businesses charged in Dauphin County in conjunction with an alleged vehicle “title washing” ring. The lengthy investigation was conducted before the 47th Statewide Investigating Grand Jury by the Office of Attorney General’s Insurance Fraud Section and Bureau of Narcotic Investigations, with the assistance of the Lehigh County Auto Theft Task Force, the Pennsylvania State Police Auto Theft Task Force, and the Philadelphia Police Department. Igor Dratch entered a negotiated plea to one count of Insurance Fraud (F3) and one count of Insurance Fraud (M1). He was ordered to serve three years of probation and to complete 40 hours of community service. He was ordered to pay $20,000.00 in fines, pay a $10,000.00 civil penalty to the PA Insurance Fraud Prevention Authority, and pay all costs. Dratch entered a negotiated plea on behalf of used car dealership GRIG LLC, to one count of Conspiracy to Wash Titles (F3). The dealership was ordered to cease all business within 90 days, pay a fine of $1,000.00, and pay all court costs. Dratch also entered a negotiated plea on behalf of G & G Auto Body and Salvage to one count of False Application for Certificate of Title (M1). The business was ordered to pay a $1,000.00 fine and all court costs.
 
On July 26, 2024, Jessica Showalter and Ronald Valentine were sentenced in Bedford County after entering negotiated pleas to one count of Insurance Fraud (F3). Valentine was incarcerated on January 22, 2022, following his arrest on an outstanding warrant in Bedford County. On January 30, 2022, Showalter contacted Progressive Insurance and reported that her 2000 Volkswagen Beetle was unable to stop on the icy driveway at Valentine’s residence and struck Valentine’s garage door and air conditioning unit. Showalter advised Progressive that the accident damaged the hood and rear passenger side of her VW. Following an examination of Showalter’s vehicle and Valentine’s residence, Progressive investigators concluded that the damages could not have occurred as Showalter described. A Progressive investigator subsequently learned that while Valentine on his way to jail on January 22, Valentine told the transporting officer that he had been trying to get Showalter’s Volkswagen to run just before his arrest. Investigators reviewed several recordings of telephone conversations between Showalter and the then-incarcerated Valentine, which took place from January through March 2022. In one of the recorded calls, Showalter told Valentine that she and a friend planned to damage the Volkswagen in order to make it look like the car struck Valentine’s garage door. In the recording, Showalter also told Valentine that she was going to claim to Progressive that her VW slid in Valentine’s driveway and struck his house. Valentine agreed to go along with Showalter’s plan. Investigators determined that the Volkswagen had been inoperable and that the claimed accident did not occur. Both Showalter and Valentine were sentenced to 24 months of probation, to perform 100 hours of community service, and were ordered to pay the costs of supervision and prosecution. In addition, Showalter was fined $500.00.
 
At the same time as his July 26, 2024, sentencing in the previous case, Ronald Valentine was sentenced in another case in Bedford County, after entering a negotiated plea to one count of Insurance Fraud (F3). On September 28, 2022, Valentine contacted Assurant Insurance Company and filed a homeowner’s claim against for damages to the garage door and HVAC system at his residence. Valentine told Assurant that the damage occurred in January 2022, when his girlfriend’s Volkswagen Beetle skidded on his icy driveway and struck the house. Assurant paid Valentine’s claim in the amount of $2,147.65. Investigators determined that Valentine’s claim mirrored the statements made previously by Valentine and his girlfriend to Progressive Insurance in support of the girlfriend’s claim for damage to her Volkswagen Beetle. In the prior claim, Progressive investigators determined that the VW was inoperable and therefore could not have struck Valentine’s property as described. Valentine admitted to investigators that he provided false information to Assurant in support of his homeowner claim. He also admitted that his girlfriend’s car could not have damaged his property. Valentine explained that the damage actually occurred in 2021 when a truck struck his residence and air conditioning unit. Valentine was sentenced to 24 months of probation and 100 hours of community service. He was fined $500.00, ordered to pay restitution in the amount of $2,147.15 to Assurant Insurance Company, and to pay the costs of supervision and prosecution. Valentine’s sentence was ordered to run concurrent to his sentence in the previous case.
 
On July 9, 2024, Anthony Knox was sentenced in Philadelphia County after entering a negotiated plea to one count of Insurance Fraud (M1). On February 12, 2022, Progressive Insurance canceled its coverage of Knox’s 2015 Chevrolet Impala for non-payment of the premium. On March 22, 2022, at 5:22 PM, Knox phoned Progressive and asked to have his policy retroactively reinstated. Knox told the insurer that his car was not involved in any accidents and was not damaged during the lapse in coverage. On March 23, Knox called Progressive and reported that while he was driving the Impala in Philadelphia at 6:53 PM on March 22, his car was struck by another vehicle. Knox provided Progressive with two photos that were taken at the accident scene. Investigators reviewed the metadata, which revealed that the pictures were taken at 5:04 PM and 5:06 PM on March 22. Philadelphia Police Department dispatch records showed that a 911 call about the crash came in at 5:00 PM, and a second call was received at 5:09 PM. Philadelphia Fire Department records indicated that EMS crews were dispatched to the accident at 5:06 PM and departed the scene approximately 20 minutes before Knox called Progressive to reinstate his policy. Knox was sentenced to 18 months of probation and was ordered to complete 50 hours of community service. He was also ordered to pay $500.00 to the Pennsylvania Insurance Fraud Prevention Authority.
 
On July 2, 2024, Lawrence Dolby, Jr. was sentenced in Allegheny County after entering an open plea to one count of Insurance Fraud (F3) and one count of Theft by Deception (F3). On April 7, 2022, at 8:03 PM, Dolby went online and filed a missing jewelry claim with State Farm Insurance. Dolby reported that his wife’s wedding ring had been missing since April 1, 2022. When State Farm contacted Dolby the next day, he stated that his wife was not sure exactly when the ring was lost but maintained that they could not locate it. State Farm made an electronic payment to Dolby in the amount of $5,000.00 on April 8. On March 3, 2023, State Farm received a call from Dolby’s ex-wife, who advised that she had heard that Dolby filed a claim for her “missing” wedding ring. The ex-wife stated that the ring was not lost and was in her possession. When investigators interviewed Dolby, he admitted that he had filed a claim for the ring and received $5,000 in claim proceeds from State Farm. The investigation revealed that Dolby made the claim, knowing that the ring was not lost. Dolby was sentenced to serve two years of probation and to complete 50 hours of community service. He was ordered to pay $5,000.00 in restitution to State Farm Insurance and pay all related costs and fees.
 
Accelerated Rehabilitative Disposition (ARD)
During the month of July, 8 additional defendants received 
Accelerated Rehabilitative Disposition (ARD).

Anti-Fraud Compliance
Reporting of Insurance Fraud to Law Enforcement Agency

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.

This newsletter was produced by the PA Office of Attorney General’s Insurance Fraud Section and edited by Senior Deputy Attorney General John T. Dickinson.

Copyright © 2018 Pennsylvania Office of Attorney General 
All rights reserved.


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