N.C. DOI Investigators Arrest Claims Rep Accused of Defrauding Travelers Insurance Co.

October 21, 2003

North Carolina Insurance Commissioner Jim Long announced the arrest of Deborah Flint Gilliam, a claims representative with Travelers Insurance Company accused of cheating and defrauding the company of $2,500, with the intent to collect more.

Gilliam, 44, of Winston-Salem, was arrested in Raleigh by Department of Insurance (DOI) law enforcement officers on and processed through the Wake County jail. The Wake County District Attorneys’ Office assisted in the investigation.

Gilliam is accused of offering a Travelers claimant a higher workers’ compensation claim settlement – allegedly as much as $20,000 more than originally offered – in exchange for a $7,500 kickback. The claimant, a Raleigh resident, reported the alleged fraud to investigators at the DOI, who set up a sting operation in order to catch Gilliam in the act. Under instruction from the DOI investigators, the claimant agreed to pay Gilliam an initial payment of $2,500. Investigators reportedly witnessed this payment and immediately arrested and charged Gilliam.

“The Department, the insurance industry and all of the insurance-buying public owe this citizen a debt of gratitude,” Long said. “She felt it was her ethical duty to report this fraud to the authorities and do the right thing. Without her good moral judgement, Travelers would have been out thousands of dollars – a cost that would only be passed along to other customers. This citizen’s honesty is what we depend on to help us crack down on fraud.”