Ohio Roofer Gets Prison Time for Insurance Fraud, Money Laundering

August 18, 2014

Columbus, Ohio-based roofer Terrance J. King, owner of Home Improvement Terrance King, has been sentenced to 48 months in prison, the result of an investigation that found King had defrauded customers and insurance companies, laundered money for personal use, filed fraudulent documents to receive subsidized housing assistance, and filed false federal income tax returns.

King was ordered to pay $241,076.34 in restitution to the IRS and $7,050 in restitution to Columbus Metropolitan Housing Authority (CMHA), the U.S. Attorney’s Office for the Southern District of Ohio reported. He also must forfeit $40,280.94 to be used to pay restitution to victims.

The U.S. Attorney’s Office said King’s fraudulent activity took place from 2008 to 2010. During that time he or his employees solicited business at properties that needed roofing repairs, contacted the clients’ insurance companies and filed claims for the repairs. King accepted the insurance money as payment for services rendered.

In many instances, however, King either failed to complete work as promised or falsely used inferior, second-hand products on contracted jobs. Homeowners, businesses and several public entities were defrauded, according to the Ohio Department of Insurance. In November 2013, King pleaded guilty to money laundering, false claims, and filing a false federal income tax return.

The insurance department began the investigation, which was then pursued by the Internal Revenue Service, the U.S. Department of Housing and Urban Development Office of Inspector General, and the United States Attorney’s Office.

The investigation found King laundered money for personal use, filed fraudulent documents to receive subsidized housing assistance, and filed false federal income tax returns.

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Insurance Journal West August 18, 2014
August 18, 2014
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