A financial service worker in South Carolina was sentenced today to two years in prison for using a scheme to dupe mortgage companies and homeowners in Eastern Kentucky.
David C. Thomas, of Greenville, S.C. admitted he falsely portrayed himself to mortgage company offices in Pikeville, Hazard, Paintsville, Corbin, and Richmond as an agent of Lloyd’s of London, the insurance provider, according to officials.
According to the plea agreement filed in January of this year, mortgage companies Citifinancial and American General required homeowners to obtain homeowner’s insurance. As a benefit of doing business with these mortgage companies, Citifinancial and American General would pay the homeowner’s first year insurance premium. The companies mailed the check to cover the insurance premium to the insurance provider.
Officials said that Thomas, falsely acting on behalf of Lloyd’s of London, admitted that he pocketed these checks issued by mortgage companies. Also, as part of the scheme, Thomas issued bogus certificates which were used to show the mortgage company and the homeowner that the homeowner’s insurance had been secured by Lloyd’s.
Thomas worked at North American Financial Services Inc. located in South Carolina but never served as an authorized representitive of Lloyd’s of London. He was indicted in February of 2008.
The United States Attorney’s Office for the Eastern District of Kentucky and the Kentucky Public Protection Cabinet made the announcement after sentencing.
Topics Agencies Excess Surplus Homeowners London Kentucky Lloyd's
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