Fraud Charges Filed in Two Counties Against North Carolinian

December 19, 2002

North Carolina Insurance Commissioner Jim Long, in conjunction with Chief Tom McCarthy of the Fayetteville Police Department and Chief Tommy Hagens of the St. Pauls Police Department, announced the arrest of Eugenia Rose Johnson of Fayetteville on charges of Obtaining Property by False Pretenses. These charges were filed both in Cumberland and Robeson Counties.

Officers of the Fayetteville Police Department arrested Johnson on Dec. 3 and officers of the St. Pauls Police Department arrested her three days later.

The charges stem from an investigation conducted by investigators with the DOI in cooperation with the Special Investigative Unit of Liberty Life Insurance Company, Greenville, S.C., and detectives of the Fayetteville and St. Pauls Police Departments. Johnson was released on unsecured personal bonds in both counties and her next court appearances were scheduled for later this month. She was a long-term employee of Liberty Life Insurance Company in both St. Pauls and Fayetteville.

The investigation stemmed from allegations that Johnson forged cash surrender applications and checks in connection with the cash surrender of over 400 lapsed life insurance policies that had been previously issued. The scheme allegedly generated approximately $213,000 over a seven-year period of time.

Officials of Liberty Life Insurance Company, in addition to playing a key role in this investigation, have announced that the company has restored affected policies. Concerned policyholders should contact the company at (910) 484-0568 for further information.

The Offices of the District Attorney in Cumberland and Robeson Counties are handling the prosecution.

Topics Fraud Law Enforcement

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