Delaware Woman Charged with Multiple Counts of Workers' Comp Fraud
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 On April 27, 2023, Victoria Newell-Brown (aka Victoria Stevens) was arrested in Delaware County. According to the criminal complaint, on June 12, 2018, Newell-Brown reported to her employer, Family Dollar Stores, Inc., that she was injured when she slipped and fell while working at a Family Dollar store in Philadelphia. Newell-Brown allegedly claimed that her injuries prevented her from working. The complaint stated that self-insured Family Dollar immediately began paying workers’ compensation benefits for Newell-Brown, including medical expenses and biweekly total disability lost wage benefits in the amount of $1,500. The complaint further stated that on August 12, 2019, while Newell-Brown was receiving lost wage benefits from Family Dollar, she took a job at a restaurant in Newark, Delaware. When Newell-Brown applied for the job, she allegedly used her married name, Victoria Stephens. According to the complaint, “Stephens” provided the restaurant with a different Social Security number than the one she had used at Family Dollar. She allegedly did not inform the restaurant of her employment with Family Dollar, or that she was receiving disability benefits for a prior injury. On October 18, 2019, “Stephens” allegedly reported to the restaurant that she slipped and fell while working at the restaurant and suffered injuries. According to the complaint, she immediately began receiving Delaware total disability lost wage workers’ compensation benefits. The complaint stated that “Stephens” did not disclose to anyone associated with her restaurant employment or Delaware workers’ compensation claim that she was also receiving workers’ compensation benefits in Pennsylvania. Newell-Brown (aka Stephens) allegedly received total disability benefits in both states until 2021, when an investigation uncovered Newell-Brown’s alleged fraud. According to the complaint, Newell-Brown’s Delaware benefits were terminated in April 2021. Her Pennsylvania benefits continued until February 2022, when a Workers’ Compensation court approved the benefit termination. Newell-Brown was charged with one count of Insurance Fraud (F3), one count of Theft by Deception (F2), one count of Perjury (F3), one count of False Swearing (M2), one count of Unsworn Falsification to Authorities (M2), one count of Dealing in Proceeds of Unlawful Activities (F1), one count of Unlawful Use of Computer and other Computer Crimes (F3), and three counts of Workers’ Compensation Fraud (F3). |
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 On April 27, 2023, Munir Chaudhri was arrested in Allegheny County. According to the criminal complaint, Chaudhri and his wife obtained an auto insurance policy from the Agency Insurance Company of Maryland (AIC) for their 2010 Dodge Caravan. The policy became effective on January 12, 2020. On June 29, 2022, at 11:04 AM, Chaudhri allegedly reported to AIC that the 2010 Dodge Caravan had been stolen at 3:00 PM the day before, after Chaudhri had loaned the vehicle to a friend. According to the complaint, Chaudhri owned a restaurant in Pittsburgh and had allowed one of his employees to use the Caravan to make a food delivery at a Pittsburgh location. The complaint further stated that the employee parked the van, made the food delivery, and then discovered that the Caravan had been stolen. The employee returned to the restaurant and allegedly informed Chaudhri. The theft was reported to the Pittsburgh Police. According to the complaint, the police report indicated that Chaudhri’s employee stated that the theft had occurred while he was using the van to deliver food. The complaint further stated that according to police, the van was involved in a police pursuit and sustained damage when it crashed. Chaudhri allegedly admitted to investigators that he knew that vehicles used for the delivery of food were excluded from coverage by the AIC policy. Chaudhri also allegedly admitted that he told his employee to state to the insurance company that the Caravan was not being used to deliver food when the theft occurred. AIC denied the claim. Chaudhri was charged with two counts of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F3). |
 On April 24, 2023, Douglas Boda was arrested in Butler County. According to the criminal complaint, on August 26, 2022, Boda filed a claim with USAA Insurance in which he reported that early that same day, he had been driving his 2019 Hyundai Tucson when it struck a deer, damaging the right front area of the vehicle. The complaint stated that USAA began investigating the claim after discovering that Boda previously filed a similar claim with USAA on May 20, 2021, for damage to the Tucson. According to the complaint, Boda received $1,455.37 from USAA from the earlier claim. Investigators compared photographs of the vehicle damage from both sets of claims and allegedly determined that the damage was identical. USAA denied the August 26, 2022 claim. Boda was charged with one count of Insurance Fraud (F3) and 1 count of Criminal Attempt / Theft by Deception (M1). |
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 On April 18, 2023, Kevin Larson was arrested in Erie County. According to the criminal complaint, on January 18, 2023 at 1:55 PM, Larson purchased a Progressive Insurance policy for his 2014 Chevrolet Spark. On January 21, 2023, at 1:02 PM, Larson allegedly filed a claim for deer strike damage to the vehicle’s passenger side. Progressive subsequently interviewed Larson, who allegedly stated that the accident had occurred on January 19, 2023, at approximately 4:00 AM, while Larson was driving to work. During a review of the claim, Progressive contacted the insurance agent who wrote Larson’s policy. According to the complaint, the agent reviewed video surveillance footage of the agency’s parking lot from January 18, 2023, and found that the Larson’s vehicle was already damaged when Larson purchased his policy. When Progressive confronted Larson with its findings, Larson allegedly asked to cancel his claim. According to the complaint, a police incident report confirmed that Larson’s deer strike had occurred on January 15, 2023, before Larson purchased his Progressive coverage. Larson allegedly had not disclosed the pre-existing damage to Progressive when he applied for the policy. The insurer denied the claim. Larson 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 April 11, 2023, Kirsten Schrecongost was arrested in Butler County. According to the criminal complaint, Schrecongost purchased automobile liability coverage for her 2022 Jeep Grand Cherokee from Progressive Insurance on October 7, 2022. On November 1 at 11:18 AM, Schrecongost allegedly called the insurer and asked to add comprehensive and collision coverage to the policy. According to the complaint, Progressive informed her that the policy changes would take effect on November 6, 2022. On November 14, 2022, at 7:54 AM, Schrecongost allegedly used the Progressive Insurance app on her iPhone to file a claim for deer strike damage to her Grand Cherokee. According to the complaint, Schrecongost reported that the loss had occurred on November 14, 2022 at 7:25 AM. The complaint further stated that Schrecongost used the Progressive app to upload photographs of her damaged Jeep, which she had taken at the accident scene on November 14. According to the complaint, investigators determined from the photo metadata that the photos were actually taken on November 1, 2022, the day that Schrecongost asked the insurer to add comprehensive and collision coverage to her existing policy. Progressive denied the claim. Schrecongost was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (M1). |
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 On April 24, 2023, Stephanie King was sentenced in Bradford County after entering an open plea to one count Insurance Fraud (F3), one count of Medicaid Fraud (F3), and 2 counts of Controlled Substance and Drug Violation (F3). Charges were filed against King following a joint investigation conducted by the PA Office of Attorney General’s Insurance Fraud Section and Medicaid Fraud Control Unit. King, a Certified Registered Nurse Practitioner and former owner of the Center for Holistic and Integrative Mental Health in Athens, PA, began a sexual relationship with a patient in November 2016, then fraudulently billed Highmark for time that she spent with that patient during their relationship. King subsequently entered into a relationship with another patient and continued to prescribe controlled substances to him after she stopped providing medical care to the patient. Pennsylvania law requires nurse practitioners to enter into collaborative agreements with PA licensed physicians in order to diagnose patient medical conditions and to prescribe controlled substances. The investigation revealed that King renewed prior collaboration agreements without the knowledge or consent of the physicians. She then billed Highmark for more than $300,000.00 and billed the Commonwealth’s Medicaid program for more than $100,000 for services that did not meet acceptable medical treatment standards. Additionally, King illegally wrote more than 3,750 prescriptions for patients. King was sentenced to serve 10 years of restrictive probation, the first 6 months of which she will serve under house arrest with electric monitoring. King was ordered to pay restitution to Highmark in the amount of $348,760.00. King also surrendered her nurse practitioner’s license. |
 On April 19, 2023, Jamie Earley was sentenced in Schuylkill County after entering a negotiated plea to one count of Criminal Attempt / Theft by Deception (M1). On August 20, 2021, Earley’s auto policy with Progressive Insurance was canceled for non-payment. On November 23, 2021 at 5:42 PM, Earley used the internet to purchase a new auto policy from Progressive for his 2013 GMC Acadia. At 7:30 AM on November 24, 2021, Earley filed a claim with Progressive, in which he stated that his 2013 GMC Acadia caught fire at approximately 7 PM the previous evening. Investigators learned that 911 received a report of the vehicle fire at 5:03 PM on November 23, 2021, and that the Mahanoy City Police, Mahanoy City Fire Department, and a towing company arrived at the fire scene between 5:04 PM and 5:16 PM. Earley subsequently stated that he went home after the incident, logged onto his computer, and discovered that his previous coverage had been canceled. Earley admitted that he bought coverage for the GMC after it was damaged by fire, hoping that Progressive would cover the loss. Earley was sentenced to serve 24 months of probation. He was ordered to serve 50 hours of community service, pay a fine of $250.00 fine, and to pay all court costs. |
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 On April 11, 2023, Gary Moore was sentenced in Westmoreland County after entering a negotiated plea to one count of Insurance Fraud (M1) and one count of Theft by Deception (M1). On April 20, 2018, Moore obtained an Erie Insurance policy for a 2014 Dodge Avenger that he was financing. During his application for coverage, Moore failed to disclose certain information which, according to Erie, would have prevented him from obtaining the policy. On December 9, 2019, Moore filed a claim for damages to his vehicle. Erie estimated the cost of repairs at $890.19, minus the policy’s $500.00 deductible. Erie sent Moore a check for the amount of $390.19, payable to Moore and to the repair facility, Oranges Auto. Erie also paid the cost of a rental vehicle for Moore. On March 29, 2020, Moore filed another claim with Erie for different damages to his Dodge Avenger. Erie sent the same adjuster to inspect the damages. The inspector estimated the repair costs at $1,460.15, less than a $250 deductible. Moore received a check from Erie in the amount of $1,210.15, which was made payable to Moore and to Oranges Auto Repair Shop. Erie Insurance also paid for a rental vehicle. During the claim process, the Erie adjuster determined that the damage from Moore’s first claim had not been repaired. An investigation revealed that the checks Erie had issued payable to Moore and Oranges Auto had been cashed, but that Oranges Auto’s purported endorsements on the checks were not authentic. Further, Oranges Auto denied ever having repaired Moore’s vehicle. Moore was sentenced to serve concurrent sentences of two years of probation. He was ordered to complete 50 hours of community service, pay $1,899.83 in restitution to Erie Insurance Group, and pay prosecution costs. |
 On April 5, 2023, Eugene Lewis Jr. was sentenced in Clarion County after entering an open plea to one count of Theft by Deception (M1) and one count of Pharmacy Act Violations (M). Lewis had been employed by the Department of Veterans Affairs (VA) as a Certified Registered Nurse Practitioner. As a result of information received, investigators audited all prescriptions issued by Lewis and found that Lewis had issued 58 unauthorized prescriptions between November 20, 2018, and November 28, 2021. Many of the unauthorized prescriptions were paid for with prescription drug insurance from CVS Caremark, the third-party prescription administrator for Blue Cross / Blue Shield. Lewis Jr. was sentenced to serve an aggregate term of three years of probation. He was ordered to serve 50 hours of community service, pay restitution in the amount of $890.62 to Blue Cross / Blue Shield, and to pay all court and prosecution costs. |
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 On April 5, 2023, Curtis Dailey was sentenced in Chester County after entering a negotiated plea to one count of Insurance Fraud (M1). Dailey was involved in a two-vehicle crash during the evening of October 28, 2020, six days after his Progressive Insurance vehicle policy was canceled. Approximately two hours after the crash occurred, Dailey reinstated his canceled Progressive policy. In order to do so, Dailey completed a “Statement of No Loss”, which indicated that neither he nor the vehicle had been involved in any accidents during the policy lapse period. Dailey subsequently filed a claim with Progressive in which he reported that his vehicle had been involved in a crash at approximately 5:00 AM on October 29, 2020. Progressive investigated the claim. Based upon police dispatch records and the crash report, Progressive determined that the accident occurred before Dailey’s coverage was reinstated. Dailey was sentenced to serve three years of probation and ordered to pay all court costs. |
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Accelerated Rehabilitative Disposition (ARD)
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During the month of April, 6 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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