The Camera Never Lies

Following an investigation by the California Department of Insurance (CDI) Fraud Division, Raymond Ellis Wilson, 36, an Orange County resident, pled guilty in Orange County Superior Court to one felony count of insurance fraud.

Wilson was arrested on four felony counts of insurance fraud. When booked into Orange County Central Jail, bail was set at $10,000. The Orange County District Attorney's Office is prosecuting the case.

In July 2000, Lori Beall was involved in a rear-end collision with another vehicle operated by Kaileen Cassedy. After Beall and Cassedy inspected the minor damage to the vehicles, Beall accepted full responsibility for the accident and asked Cassedy to forward a damage estimate.

Days later, Beall received a phone call from Raymond Wilson, the owner of the damaged automobile. Wilson claimed the repair estimate for his automobile was about $3,500. Beall asked Wilson to send photographs of the vehicle to verify the alleged damage caused in the collision. Upon reviewing the photographs, Beall concluded the automobile she struck was not the one photographed. She referred Wilson to her carrier for reimbursement, and notified that carrier that she felt the claim was fraudulent and merited investigation.

Beall's carrier hired an accident reconstructionist to review photographs of both vehicles involved in the accident. It was determined Beall could not have caused the damage to Wilson's automobile. A review by the California Highway Patrol (CHP) confirmed that most of the body damage that allegedly occurred in the collision could not have occurred as stated by Wilson. Based on their investigation, Beall's insurance carrier denied Wilson's claim, for which nothing was paid.

Photos also played a role in the arrest of Yuba City resident Santokh Sandher, who was charged with seven felony counts of insurance fraud, grand theft and attempted grand theft. Sandher, 35, was booked into the Sutter County Jail. Bail was set at $15,000. If convicted, Sandher could face up to five years in state prison and/or a maximum fine of $50,000. The Sutter County District Attorney's Office is prosecuting the case.

According to the CDI, in October 2000, Sandher reported to his insurance company that major parts on his truck were stolen and replaced with old parts while the truck was parked in front of his residence. The alleged swapped parts listed were the engine, transmission, muffler, tailpipe, alternator, carburetor and wheels.

Two independent appraisers inspected the truck and found no evidence that any of the parts had been replaced. The dealer who sold the truck to Sandher approximately two months prior to the alleged incident identified pictures of the wheels, which were installed by the dealership prior to Sandher's purchase of the truck. Although the total loss was estimated at $2,800, Western United Insurance Company paid only $500 on this claim.

'Want Me to Steal Your Motorcycle''

David Simoes, 26, of San Jose was arrested on charges of attempted insurance fraud and attempted auto theft in connection with a claim on a $9,000 Yamaha racing motorcycle. The charges stem from a CDI undercover investigation conducted with assistance of the Auto Interdiction Task Force, comprised of the Alameda County District Attorney's Office and the CHP.

While trying to sell a motorcycle online, a citizen was allegedly contacted by Simoes, who indicated willingness to "steal" the motorcycle, thereby allowing the citizen to make a theft claim to his insurer.

Based upon the information provided by the citizen, an undercover operation was set up. A CDI investigator contacted Simoes via the Internet, agreeing to allow Simoes to steal the motorcycle with the intent of making a false claim for the theft of the bike. With the cooperation of Yamaha Motor Corp., which provided investigators with a racing motorcycle, a face-to-face meeting was arranged with Simoes and the undercover investigator. Simoes was later arrested while attempting to steal the motorcycle.

Ask and You Shall 'Receipt'

The CDI announced the arrest of two individuals in unrelated cases, both involving Sacramento residents. Daniel Vikash, 20, surrendered to authorities on two felony counts of insurance fraud. In April 2001, Vikash submitted a $2,120 automobile claim to his insurer for the alleged theft of car stereo equipment. An investigation revealed that the receipts submitted were of a fraudulent nature.

Timothy Michael Brunyansky, 30, was arrested on three felony counts of insurance fraud and one felony count of perjury. In July 2000, Brunyansky submitted a claim with his carrier, alleging that several pieces of stereo equipment had been stolen from his vehicle. Not suspecting fraud, the company paid his claim. However, after a second claim was submitted a month later for newly purchased stereo equipment, an investigation was conducted. It was alleged that Brunyansky falsified two receipts from non-existing audio stores.

In San Bernadino, CDI investigators arrested Tom Davido, 56, on two felony counts of insurance fraud. Davido was booked on $5,000 bail at Riverside County Jail. The Riverside District Attorney's Office is prosecuting the case.

Davido allegedly filed a claim with his auto insurer for a Jan. 5, 2001 interior vehicle fire, and theft of personal belongings and vehicle parts, including tires and wheels.

A CDI investigation revealed that the receipt used to substantiate the purchase of the tires was forged. Davido later admitted under oath that the receipt for the tires was forged and the tires and wheels were not actually stolen as claimed. Allstate did not pay any money out on this bogus claim.

'3' is Not His Lucky Number

Bradley Scott Dent, 40, of Sacramento was arrested on two felony counts of second-degree burglary and possession of a completed check with intent to defraud.

According to the CDI, Dent filed a claim with his carrier for damage done to his vehicle while parked. Dent was issued a check for $343 to repair the damage. After the check was cashed, it went through a reconciling procedure of checks and balances. The insurer noticed the check had been cashed for $3,000 more than the amount issued. Investigators allege Dent had altered the check by adding an additional "3" to the amount of $343, thus adding $3,000 to the original check.

Zero Tolerance for Former Cop

A former police officer, Brett Leroy Cox, 37, was sentenced to three years probation and 120 hours of community service for one misdemeanor count of insurance fraud, to which Cox pled no contest in Fresno County Superior Court.

In exchange for paying full restitution totaling over $18,000 to carriers, additional insurance fraud charges filed by the Madera D.A.'s Office were dismissed, and the charge was allowed to be entered as a misdemeanor.

According to CDI investigators, Cox submitted 11 insurance claims, and all but one were fraudulent or displayed fraudulent aspects. Cox allegedly made several misrepresentations on his homeowners policies, listed identical items in separate claims and made inconsistent statements regarding claims submitted for his burglarized vehicle.

Cox was originally arrested on two counts of insurance fraud and booked into Fresno County Jail. At the time of his arrest, Cox cooperated with investigators, confessing to the two counts he was charged with and expressing his desire to make full restitution.

Cashing in on Fraud

Following a four-and-a-half-year investigation and prosecution by CDI, the Employment Development Department (EDD) and the San Mateo County District Attorney's Office, Laurence Bennett Guy was sentenced in Superior Court, County of San Mateo, on five felony counts of insurance fraud, tax fraud and money laundering.

Guy, owner of Guy's Roofing in Redwood City, Calif., received one year in county jail plus five years of supervised probation. He was also ordered to pay $800,000 in restitution to several insurance agencies, the CDI and the EDD, and to surrender to the San Mateo County Jail on Oct. 6, 2001, to begin his jail sentence. Guy has thus far paid an amount slightly more than $100,000 in restitution.

Guy allegedly developed a scheme in which he paid his workers in cash for all overtime hours and some straight time, thereby underreporting his payroll taxes and reducing his workers' compensation premiums. This allowed Guy's Roofing to underbid competing roofers in the Bay Area, who were paying their share of taxes and insurance premiums as required by law.

Employees allegedly were ordered to create false certificates of workers' comp coverage to show to insurance companies and tax auditors.

Pulling the Rug out from Under a Scam

Investigators from the CDI arrested Ruth Ekong, 61, at her home in Palmdale, Calif., home on nine felony charges of insurance fraud, conspiracy, grand theft and perjury. Ekong was booked at the Lancaster Sheriff's Station, and bail was set at $437,790.

An arrest warrant was also issued for Ekong's husband, Lancaster cardiologist Dr. Enobong Ekong on four felony charges including insurance fraud. Dr. Ekong surrendered in Los Angeles Superior Court several days later, and his bail was set at $30,000. The Los Angeles District Attorney's Office is prosecuting the case.

According to investigators, in June 2000, the Ekongs filed a claim with SAFECO Insurance for vandalism to the interior of their home. The value of the claim, originally for $570,000, was later reduced to $294,922. An investigation revealed that Ruth Ekong allegedly caused the damage. Investigators also found that both the Ekongs allegedly participated in the pursuit of the claim, knowing it was fraudulent.

During the investigation of the vandalism claim, a previous claim with SAFECO filed by Ruth Ekong in July 1999 was reviewed and found to be suspicious. In that claim, Ruth Ekong claimed a rug and tapestry purchased in 1975 were destroyed. SAFECO valued the loss of the rug and tapestry at $69,280. After receiving payment, Ruth Ekong hired an appraiser to value the rug and tapestry and later submitted appraisals listing the value of the items at $295,000. SAFECO subsequently settled the claim for an additional $165,690.

The current investigation of the past claim revealed the appraiser was Ruth Ekong's sister, who, according to investigators, had no credentials to appraise such items. Ruth Ekong allegedly led SAFECO to believe someone had referred the "appraiser" and never disclosed the sister's true relationship.