It Takes Two to Crash This Lexus

Rory G. Graham, formerly of Boulder City, Nevada, pled guilty Feb. 23 to three felony counts of insurance fraud. The 37-year-old man allegedly bilked auto insurance companies out of $83,324 by filing false claims in the wreck of a Lexus. Graham's sentencing is set for April 19.

Graham, who faces up to 12 years in prison and fines up to $15,000, will make restitution to the insurance companies as part of a plea bargain.

According to Attorney General Frankie Sue Del Papa, the state has filed a civil forfeiture action against one of Graham's bank accounts, which contains $154,000.

Using false ownership documents and proof of identification, Graham and Daniel J. Erickson allegedly took out separate insurance policies with various companies on a 1993 Lexus. Then each claimed they crashed the Lexus into a guardrail trying to avoid a coyote on U.S. 93. The two men were paid more than $83,000. According to the Attorney General's office, Graham and Erickson filed more than 15 claims in Nevada and California seeking more than $120,000.

Graham was arrested last year in Wisconsin on phony credit card charges. Erickson has been arrested in Southern California, and remains in custody.

'Guilty, Your Honor'

Ronald Allen Prasky, owner of Border Pacific Insurance Services, pled guilty March 14 to five felony counts of insurance fraud and one count of income tax evasion. In his plea, the 31-year-old man admitted to stealing insurance premiums from his customers by issuing phony auto insurance identification cards. Prasky could face up to seven years in prison and a $50,000 fine. In addition, the California Department of Insurance (CDI) is seeking revocation of Prasky's license based upon the felony conviction.

Jesus Antonio Lopez, a Border Pacific office manager, pled guilty to five felony counts of insurance fraud and one count of offering a false instrument to be filed in a public office in the State of California. The 32-year-old man could face up to four years in prison and a $50,000 fine.

Mylena Munguia-Prasky, Prasky's wife, pled guilty to one felony count of aiding a principal to avoid escape or arrest. She could face up to one year in county jail and a $10,000 fine.

Sentencing for the three individuals is set for June 15 in San Diego Superior Court.

Playing Tug-of-War with the Truth

Jeffrey Ferguson of Tuolumne self-surrendered to authorities on March 13. The 41-year-old man was arrested for workers' compensation fraud.

According to investigators, Ferguson was employed as a licensed vocational nurse at Tuolumne County Hospital from August 1994 through April 1995. While employed there, he submitted four workers' comp claims for injuries to his wrists, back and right heel. Tuolumne County Hospital is self-insured. In June 1998, Ferguson competed in a 43-minute tug-of-war contest at the 49th Tuolumne Lumber Jubilee. A videotape of the event revealed the truth-Ferguson was participating in physical activities that were contrary to his subjective claims.

As a result of his false statements and misrepresentations, Tuolumne County incurred losses of more than $75,000.

This Picture's Worth a Thousand Words

Following a 14-month investigation by the CDI Criminal Investigations Branch, four Southern California residents were arraigned in Los Angeles Superior Court. Lynnette Ammons, 37, of Inglewood; Anthony Graham Jr., 21, of Inglewood; Vita McNair, 44, of Los Angeles; and Devorea Wilson, 21, of Redlands; were all charged with two counts of insurance fraud and one count of conspiracy to commit fraud.

According to investigators, Ammons filed a claim with Coast National Insurance Company for an alleged hit-and-run traffic collision she was involved in while driving her Toyota Celica in August 1998. She and her passengers were compensated for injuries sustained in the accident. Investigators claim that Ammons later reported to Coast National that she was involved in another traffic collision on Feb. 26, 1999, while driving the same vehicle.

The other vehicle's driver, Wilson, who allegedly collided with the rear-end of the Toyota Celica, was identified and interviewed by Coast National and claimed that he collided with Ammons' car. According to investigators, Wilson also submitted a claim for the alleged February collision to his insurance company, Reliant General.

Investigators learned that Wilson had a collision Feb. 1, 1999, while driving his vehicle that resulted in the same damage he had claimed in the subsequent and alleged Feb. 26, 1999, collision with Ammons. Insurance company inspection photographs from one collision to the next showed no change in damage. A Los Angeles Police Department collision reconstruction expert confirmed the alleged collision between Ammons' vehicle and Wilson's vehicle never occurred. The Los Angeles County District Attorney's Office is prosecuting the case.

Game Over for this Agent

Investigators with the CDI Criminal Investigations Branch served an Order of Summary Revocation on John Blanton Breland, a 52-year-old Lodi insurance agent. The license revocation became effective March 6. According to investigators, Breland's motive stemmed from personal financial problems as a result of substantial gambling losses.

Insurance Commissioner Harry Low issued the order, dated Jan. 29, 2001, revoking Breland's license after he pled guilty in the San Joaquin Superior Court to four felony counts. Breland pled guilty to two counts of embezzlement, one count of theft from an elder or dependant, and one count of False Statement to Sell or Buy Securities. According to investigators, Breland would solicit clients to either make an investment or purchase an annuity, and then he would divert some-or all-of the money to his own personal account.

Breland's sentencing date is set for Oct. 18, 2001. He has already been ordered to pay more than $300,000 in restitution to four victims.

One Apple Didn't Fall Far From the Tree

California Insurance Commissioner Harry Low ordered the revocation of the licenses and licensing rights, effective April 13, of Jack Hagop Printsian and his son Ara Kaspar Printsian. The two Santa Clarita brokers were found guilty of multiple felony counts of grand theft for swindling clients of their insurance premiums.

The Los Angeles Superior Court found the father-son duo guilty of collecting premiums from customers for auto insurance and failing to remit payments to authorized insurance companies. Instead, the Printsians issued phony insurance identification cards and kept their clients' payments for their own personal use.

Both men were sentenced to five years formal probation, 300 hours of community service, and ordered to pay $14,826. In addition, neither will be allowed to handle money that is not their own nor will they be allowed to transact insurance business.

The CDI's Criminal Investigation Branch launched an investigation after receiving numerous consumer complaints.