Insurance Agent Charged with Theft of More than $100,000 in Premium Payments
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 On September 7, 2022, James Stevenson was arrested in Allegheny County. According to the criminal complaint, in February 2021, Dr. Robert Boyda, an oral surgeon with Arlington Oral Maxillofacial Surgery, applied to be on staff at Heritage Valley Health System (HVHS). As part of the application process, HVHS allegedly requested Dr. Boyda to provide proof of his professional liability insurance. The complaint stated that Dr. Boyda provided HVHS with a copy of the Certificate of Insurance for an Evanston/Markel Insurance policy with an expiration date of November 30, 2021. According to the complaint, the certificate was provided to Dr. Boyda by his insurance agent, Stevenson. However, when HVHS contacted Evanston/Markel to confirm that the policy was current, Evanston/Markel allegedly reported that the policy expired on February 20, 2017, for non-payment. According to the complaint, Arlington Oral Maxillofacial Surgery (AOMS) advised Evanston/Markel that premium payments for Dr. Boyda’s policy had been made directly to Stevenson from 2011 through 2021. AOMS allegedly provided investigators with copies of the checks written to Stevenson for the policy premiums. The complaint stated that beginning in 2017, Stevenson provided the policyholder with Certificates of Insurance, instead of copies of the policy declaration pages. Investigators allegedly discovered that the policy numbers on the Certificates of Insurance from 2017 through 2021 did not correspond to policies issued or authorized by Evanston/Markel Insurance Company. According to the complaint, Dr. Boyda and Arlington Oral Maxillofacial Surgery confronted Stevenson about the issue. Stevenson allegedly did not admit to keeping the premiums but provided Dr. Boyda with a new Certificate of Insurance for a professional liability policy with Westport Insurance for the policy period of February 1, 2021, to February 1, 2022. Stevenson allegedly represented that Dr. Boyda was covered by the policy. However, according to the complaint, investigators discovered that the Westport policy was Stevenson’s own personal liability policy. The complaint stated that Stevenson misappropriated or failed to remit approximately $126,517.90 in premium payments for professional liability coverage made by Arlington Oral Maxillofacial Surgery. Stevenson was charged with one count of Theft by Unlawful Taking (F2), one count of Theft by Deception (F3), one count of Failure to Make Required Disposition of Funds Received (F3), one count of Deceptive or Fraudulent Business Practices (F3), one count of Insurance Fraud (F3), one count of Forgery (M1), one count of Tampering with Records or Identification (M1), and one count of Misapplication of Entrusted Property and Property of Government or Financial Institutions (M2). |
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 On September 29, 2022, Amber Hall was arrested in Cambria County. According to the criminal complaint, on or about December 25, 2021, Hall obtained a Safe Auto Insurance Company policy via the internet for her 2012 Nissan Altima. Hall allegedly filed a claim with Safe Auto on December 27, 2021, at approximately 3:56 PM, in which she stated that she had been driving the Altima in icy conditions at approximately 8:30 AM, when she lost control of her vehicle and struck a cement barrier. The complaint stated that during the application process, Hall was asked if she had been involved in any accident during the previous five years, or if her vehicle had any pre-existing damage. Hall allegedly answered “no” to both questions. The complaint further stated that Safe Auto subsequently obtained a recorded statement from Hall, who again claimed that the crash occurred at approximately 8:30 AM on December 27. However, investigators allegedly discovered that Hall’s Altima was towed from the scene of the accident on December 24, 2021. According to the complaint, Hall admitted during a follow-up interview with investigators that the accident occurred on December 25, 2021, before she obtained a valid insurance policy. Safe Auto denied the claim. Hall 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 September 29, 2022, Curtis Dailey was arrested in Chester County. According to the criminal complaint, Dailey was involved in a two-vehicle crash on the evening of October 28, 2020. Dailey’s Progressive Insurance policy was canceled six days earlier. Approximately two hours after the crash, Dailey allegedly re-instated his Progressive policy, during which he completed a “Statement of No Loss”, indicating that neither he nor the vehicle in question were involved in any accidents during the six-day policy lapse period. The complaint stated that Dailey filed a claim with Progressive in which he reported that the crash occurred at about 5:00 AM on October 29, 2020. Progressive investigated the claim and, based upon police dispatch records and the crash report, the insurer allegedly determined that the accident occurred before the lapsed policy was reinstated. Progressive denied the claim. Dailey 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).
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 On September 27, 2022, Kimberly Hollman was arrested in Washington County. According to the criminal complaint, Hollman was operating her uninsured 2015 Toyota Tundra on March 19, 2022, at 4:50 PM, when the Tundra struck a vehicle that was parked in front of a local retail store. Hollman allegedly left a note on the parked vehicle and drove home. The complaint stated that approximately twenty minutes after the accident, Hollman obtained an automobile policy from Progressive Insurance via Internet Direct. The complaint further stated that Hollman’s husband returned to the accident scene and provided the owners of the parked vehicle with the new Progressive policy information. According to the complaint, Hollman informed Progressive that the accident had occurred at approximately 6:00 PM on March 19, 2022, which was after she had obtained the insurance coverage. However, the owners of the parked vehicle allegedly provided investigators with a purchase receipt from the retail store, which indicated that the loss occurred at 4:30 PM, prior to the inception of Hollman’s policy. The complaint stated that Hollman admitted to investigators that she obtained the policy after the accident occurred, and that she misrepresented the time of loss in order to have the policy cover the damages to the other vehicle. Progressive denied the claim. Hollman was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (M1). |
 On September 21, 2022, Wayna Harris was arrested in Washington County. According to the criminal complaint, Harris’ Plymouth Rock Insurance policy was canceled for non-payment on September 30, 2021. Harris allegedly contacted the insurer on October 13, 2021, at 11:13 AM, and reinstated his policy. During the reinstatement process, Harris allegedly told the insurer that his vehicle had not been involved in any motor vehicle accidents during the lapse period. However, the complaint stated that on October 19, 2021, a woman called Plymouth Rock and reported that a vehicle driven by Harris struck her 2022 Honda Civic at approximately 8:00 PM on October 12, 2021. The woman allegedly advised that Harris had left a note on her vehicle advising her of the accident, but that when she tried to contact him, she was unsuccessful. According to the complaint, a Washington County Police Department report confirmed that the woman reported the crash to police at 10:17 AM on October 13, 2021, which was prior to the reinstatement of Harris’ coverage. Harris was charged with one count of Insurance Fraud (F3), one count of Theft by Deception (F3), and one count of Insurance Fraud (M1).
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 On September 15, 2022, Cheyenne Bradley was arrested in Blair County. According to the criminal complaint, on March 15, 2021, at approximately 7:11 PM, Bradley was involved in a two-vehicle accident. At approximately 8:09 PM, Bradley allegedly reinstated her previously canceled insurance policy with 1st Acceptance Insurance Company. The complaint stated that during the claim process, Bradley told the insurer that the accident had occurred after her policy was reinstated. However, the Allegheny Police Department accident report allegedly confirmed that the accident occurred at approximately 7:11 PM, which was before Bradley reinstated her policy. 1st Acceptance denied the claim. Bradley was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (M1). |
 On September 12, 2022, Aimee Slaughter was arrested in Erie County. According to the criminal complaint, Slaughter reported that she was injured when she slipped and fell when she was responding to a patient’s pager, while Slaughter was working for Dedicated Nursing Associates, Inc. (DNA) on October 8, 2021. On October 10, 2021, Slaughter allegedly sought medical treatment at MedExpress who later discharged her. The complaint stated that MedExpress provided Slaughter with a Worker’s Compensation Duty Form, which indicated that she could return to full duty with no restrictions. Slaughter allegedly sought additional treatment at MedExpress on October 21, 2021, and November 10, 2021. According to the complaint, Slaughter allegedly supplied her employer with photographs of the Worker’s Compensation Duty Form, listing her work status as “modified duty” on October 21, 2021, and as “unable to work” on November 10, 2021. According to the complaint, on November 10, 2021, an adjuster from Key Risk Insurance Company contacted MedExpress to verify the documentation and determined that Slaughter had only been treated on October 10, 2021. When Slaughter was interviewed by investigators, she allegedly denied submitting the purported MedExpress documents from October 21 and November 10. According to the complaint, Slaughter received worker’s compensation payments on or after October 21, 2021, which totaled $3,706.86, to which she was not entitled. Slaughter was charged with one count of Worker’s Compensation Fraud (F3), one count of Forgery (F3), and one count of Theft by Deception (F3).
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 On September 12, 2022, Michael Umstead was arrested in Chester County. According to the criminal complaint, on November 15, 2021, Umstead’s automobile insurance policy with Geico Insurance Company was canceled for non-payment. On November 27, 2021, Umstead allegedly reinstated the policy which covered his 2012 BMW 550i, effective that same day. The complaint stated that on December 1, 2021, Umstead reported to Geico that on November 30, 2021, at 9:30 PM, his BMW ran over a piece of wood, which damaged the car’s oil cooler line. However, the investigation allegedly revealed that Umstead’s BMW was towed to a repair shop at 3:03 PM on November 23. The complaint stated that Geico determined that the damage to the BMW occurred prior to the reinstatement of Umstead’s policy. Geico denied the claim. Umstead was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (M1). |
 On September 9, 2022, Dayshanah Pearson was arrested in Philadelphia County. According to the criminal complaint, on June 03, 2020, Pearson reported to NJM Insurance Company that while her 2017 Nissan Sentra was parked, it was struck and damaged by a hit-and-run driver. The complaint stated that on June 8, 2020, NJM was notified that another driver filed a claim against Pearson’s policy, indicating that Pearson backed into the other driver’s 2016 Chevrolet Impala on June 3, 2020. The other driver allegedly reported that Pearson provided him with her PA license, registration, and insurance information. The complaint stated that during an initial recorded interview with NJM, Pearson denied ever having been involved in an accident or having any vehicle damage. Pearson also allegedly denied giving anyone her information or calling the police. According to the complaint, during a second recorded interview with NJM, Pearson admitted that she had been in an accident, and that the other driver’s account was accurate. NJM paid for the damage to the 2016 Chevrolet Impala. Pearson 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 September 8, 2022, John Jones Jr. was arrested in Lancaster County. According to the criminal complaint, Jones’ auto policy was canceled for non-payment on September 20, 2021. On October 28, 2021, at 8:01 PM, Jones used The General’s online app to reinstate the coverage for his 2019 Chevrolet Malibu. On November 5, 2021, at 2:19 PM, Jones allegedly filed a claim with the General, indicating that his vehicle was involved in an accident on October 28, 2021, at 8:30 PM. The complaint stated that Jones reported that the accident involved no injuries and that the police were not called. Jones allegedly submitted photos taken of the damaged vehicle at the accident scene. According to the complaint, the metadata from the photographs revealed that the accident occurred before Jones reinstated his automobile insurance policy. The General denied the claim. Jones was charged with one count of Insurance Fraud (F3). |
 On September 8, 2022, Dana Weston was arrested in Montgomery County. According to the criminal complaint, Weston was driving a 2012 Audi A8, owned by another person, when the Audi was involved in a two-vehicle on June 24, 2020. The complaint stated that the vehicle’s owner purchased coverage for the Audi from Progressive Insurance on June 25, 2020. On June 27, 2020, the Audi’s owner allegedly used the Progressive Insurance online app to file a claim for the accident, reporting that it occurred at approximately 11:30 PM on June 25. During the claim process, Weston allegedly provided a recorded statement to Progressive, in which he maintained that the crash occurred on the evening of June 25, 2020, between 11:30 PM and 12:00 AM. According to the complaint, the police accident report and tow company records revealed that the crash had occurred on June 24, 2020, shortly after 10:00 PM. Progressive denied the claim. Weston was charged with two counts of Insurance Fraud (F3) and one count of Criminal Use of a Communication Facility (F3). |
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 On September 1, 2022, Zafir Mackrey and Hudhaifa Weathers were arrested in Delaware County.  According to the criminal complaint, on October 9, 2021, at 6:29 AM, Weathers incepted a Progressive Insurance Automobile policy for his 2017 Hyundai Sonata SE. On October 10, 2021, at approximately 3:49 PM, Weathers allegedly went online and reported an automobile damage claim to Progressive. The complaint stated that Weathers claimed that the accident involving his 2017 Hyundai Sonata had occurred on October 9, 2021, at approximately 7:00 PM. On October 14, 2021, during a recorded statement to Progressive, Weathers allegedly maintained that the accident occurred between 7:00 PM and 8:00 PM on October 9. According to the complaint, Weathers stated that two passengers were in his vehicle when the accident occurred, and that the driver of the other vehicle fled the scene on foot. On October 20, 2021, a Progressive representative spoke via telephone with Mackrey, who was a passenger in Weathers’ vehicle at the time of the accident. Mackrey allegedly claimed that the accident occurred on October 9, 2021, between 7:00 PM and 8:00 PM. However, the complaint further stated that a tow truck driver told investigators that he had towed Weathers’ Hyundai Sonata from the accident scene on October 9, 2021, at approximately 2:00 AM. During a subsequent recorded telephone conversation, Weathers allegedly admitted to the insurer that he lied about the time of the accident and that he had purchased his policy after the loss occurred. Progressive denied the claim. Mackrey and Weathers were both charged with one count of Insurance Fraud (F3), one count of Criminal Conspiracy to Commit Insurance Fraud (F3), one count of Criminal Attempt / Theft by Deception (F3), and one count of Criminal Use of a Communication Facility (F3). |
 On September 1, 2022, Jhoan Mendoza and Chaina Acosta were arrested in Philadelphia County. According to the criminal complaint, Acosta  reported to the Philadelphia Police that she was involved in a two-car accident on April 10, 2021, at 1:33 PM. On April 14, 2021, Liberty Mutual Insurance contacted Acosta and conducted a recorded interview in which Acosta allegedly said she had been driving Mendoza’s 2017 black Honda Pilot, when it was struck by a 2010 blue Honda Civic EX. The complaint further stated that Acosta told investigators that Mendoza was seated in the front passenger seat when the accident occurred. On April 19, 2021, Liberty Mutual conducted a recorded interview with Mendoza, who allegedly confirmed that he was the front seat passenger of his vehicle when the accident occurred. However, the complaint stated that investigators interviewed the other involved driver, who stated that the female driver of the Pilot was the sole occupant of the striking vehicle. A witness allegedly confirmed this version of the accident. When investigators interviewed Mendoza a second time, he allegedly admitted that he had not been in the vehicle at the time of the accident. Both Mendoza and Acosta were 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 Criminal Conspiracy (F3).
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 On September 19, 2022, Joshua Herald was sentenced in Allegheny County after entering a negotiated plea to one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F3). On September 29, 2020, Herald reported to Capitol Insurance Company that he had been operating his Cadillac Deville when it was struck by another vehicle. An investigation revealed that Herald had not been present in the vehicle when the loss occurred. Investigators determined that Herald’s partner had been driving the vehicle when the accident occurred. Furthermore, investigators determined that Capitol Insurance was unaware that Herald’s partner resided with Herald and had a suspended driver’s license at the time of the loss. Herald was sentenced to serve 36 months of Intermediate Punishment with electronic monitoring. He was ordered to pay all costs. |
 On September 12, 2022, Jessica Hatton was sentenced in Philadelphia County after entering a negotiated plea to one count of Insurance Fraud (M1). Hatton contacted NJM Insurance on January 28, 2021, and reported that the 2019 Acura TLX she had been driving was involved in an accident with another vehicle a few minutes earlier. The Acura was insured by an NJM policy which listed Hatton’s mother as the named insured. During the initial call to NJM and on subsequent occasions, Hatton identified herself as her mother. However, investigators conducted a records search which confirmed that Hatton’s mother passed away approximately three months before the accident was reported. Investigators compared recorded phone calls between NJM and Hatton’s mother with the call made on January 28, 2021, and determined that the caller on January 28 was not the named insured. Investigators spoke to the driver of the other involved vehicle, who stated that the Acura’s driver had identified herself as the daughter of the NJM insured. When an investigator confronted Hatton about the death of her mother, Hatton admitted that her mother died during November 2020, and that Hatton knew that she was not listed on her mother’s insurance policy when the accident occurred. Hatton was sentenced to serve 5 years of probation and to serve 36 hours of community service. She was ordered to pay costs of prosecution. |
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 On September 7, 2022, Rebecca Price was sentenced in Jefferson County after entering a negotiated plea to one count of Theft by Deception (M1). On June 24, 2021, Price purchased a Liberty Mutual Insurance policy for her 2010 Ford F-150 truck. On August 9, 2021, Price filed a claim with Liberty Mutual for deer strike damage to the truck, which occurred earlier that day. The appraiser who inspected the vehicle for Liberty Mutual noted that the damaged area showed signs of extensive rusting, an indicator that the damage was not recent. Investigators also learned that on November 19, 2020, Price filed a deer strike claim with Root Insurance for damage to the same 2010 Ford F-150 truck. Liberty Mutual investigators received a copy of the Root claim file and compared the damage from both claims. Investigators determined that the damage was identical. Price was sentenced to serve two years of probation. She was ordered to pay all costs and $390.73 in restitution. |
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On September 6, 2022, Dean Kraemer was sentenced in Cumberland County after entering a plea to a summary charge of disorderly conduct. Kraemer worked for an organization that assisted individuals in obtaining insurance. Beginning in the summer of 2016 and continuing through the summer of 2017, Kraemer illegally engaged in a scheme to secure health care policies on behalf of drug and alcohol patients, most of whom were receiving treatment at Harmony Place, a facility in California. Kraemer assisted in securing funding under the Affordable Care Act, for Pennsylvania policies with Highmark, Independence Blue Cross and University of Pittsburgh Medical Center (UPMC). Harmony Place and other associated treatment centers billed the insurers approximately $20 million dollars for services provided to the patients in question. Kraemer was ordered to pay a fine of $300.00 and to pay costs of prosecution.
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 On September 6, 2022, Laura Hunsperger was sentenced in Montgomery County after entering a negotiated plea to one count of Insurance Fraud (M1). On April 26, 2021, Hunsperger was driving her uninsured Hyundai Santa Fe when it struck the rear of a Honda Civic. A Warminster Township police officer arrived at the accident scene at 3:44 PM. Hunsperger presented a Liberty Mutual Insurance Company card to the owner of the Honda Civic and to the officer. However, Hunsperger’s Liberty Mutual policy had been canceled for non-payment on July 7, 2019. At 5:17 PM on April 26, 2021, Hunsperger used her mobile phone to purchase a vehicle policy from Progressive Insurance. During the online application process, Hunsperger represented that she had active coverage for the Hyundai through Liberty Mutual. On April 27 at 9:29 AM, Hunsperger used Progressive’s mobile app to file an accident claim and reported that the crash occurred at 5:45 PM on April 26, after she had completed the online policy application. Hunsperger submitted photos of her vehicle damage to the insurer in support of her claim. After obtaining a copy of the police accident report and examining the photo metadata, Progressive investigators determined that the crash occurred before Hunsperger purchased her Progressive policy on April 26, 2021. Hunsperger was sentenced to serve two years of probation and to serve 40 hours of community service. She was ordered to pay a civil penalty of $2,000.00 to the Insurance Fraud Prevention Authority. |
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During the month of September, 4 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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