Former Virginia Agency Owner Pleads Guilty to Insurance Fraud

August 22, 2013

A former Virginia insurance agent, who also owned her own insurance agency in Cumberland County, Va., will spend the next five years on supervised probation after pleading guilty to felony charges. She will also pay more than $141,500 in restitution for funds she obtained through fraudulent contracts.

Terry McAbee, a former licensed property/casualty insurance agent, owned McAbee & Associates Insurance Agency LLC. As part of her business, she wrote premium finance contracts for clients to obtain loans to assist them with paying premiums on their insurance policies.

Authorities said that between January and August 2012, McAbee forged and uttered 24 fraudulent premium finance contracts. As a result of those fake contracts, she received $141,510.48 in premium finance drafts, authorities said.

The fraudulent contracts were submitted to South Carolina-based Johnson and Johnson Preferred Financing Inc. (JJPF) who contacted the Virginia State Corporation Commission’s Bureau of Insurance (BOI).

A joint investigation by the BOI, the Virginia State Police’s insurance fraud unit and the Office of the Attorney General revealed she used the funds for house payments, medical expenses, as well as other personal and business expenses.

As a result of the investigation, McAbee pleaded guilty to three felony charges in the Cumberland County Circuit Court on July 22, 2013. She also surrendered her P/C license and agency license. She was sentenced to two years for one count of Forgery, two years for one count of Uttering and two years for one count of Obtain Money by False Pretenses.

These sentences are to run consecutively for a total of six years. The six years were suspended for a period of five years on the condition of good behavior. During this time, she will be on supervised probation.

Source: Virginia State Police Insurance Fraud Program

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