Alleged Annuity Fraud Scheme Uncovered in NC
March 12, 2012 by N/A
March 09, 2012
Email Print Free Newsletter
RALEIGH, N.C.,March 8– TheNorth Carolina Department of Insuranceissued the following news release:
Insurance CommissionerWayne Goodwintoday announced the arrests ofMilton Scott Hooks, 67, of213 Westview Park Drive,Rocky Mount; andJames Lester Mangum, 64, of2005 Glissom St.,Tarboro.
Hooks was charged with 33 counts of obtaining property by false pretense, 19 counts of conspiracy to commit obtaining property by false pretense, 33 counts of common law forgery, and 19 counts of conspiracy to commit common law forgery. The charges have been filed inBeaufort,Bertie,Hertford,MartinandWashingtoncounties.
Mangum was charged with 19 counts of obtaining property by false pretense, 19 counts of conspiracy to commit obtaining property by false pretense, 19 counts of common law forgery, and 19 counts of conspiracy to commit common law forgery. The charges have been filed inBeaufort,Bertie,Hertford,MartinandWashingtoncounties.
Department of Insurancecriminal investigators allege that fromMay 2006toAugust 2008, Hooks and Mangum criminally conspired to defraudAmerican Equity Insurance CompanyandNorth American Insurance Companyof more than$235,000in commission payments.
Hooks and Mangum are accused of moving clients’ assets into annuity products offered by the two insurance companies without the clients’ knowledge, in order to receive commission payments. The alleged scheme involved 22 individual consumers fromBeaufort,Bertie,Hertford,MartinandWashingtoncounties, and$2.5 millionin assets including 401-k investments, savings and certificates of deposit.
The alleged scheme involved forgery and alteration of documents, and was not uncovered until clients attempted to withdraw money from their financial accounts.
The Department of Insurance,American Equity Insurance CompanyandNorth American Insurance Companyworked together to ensure the consumers involved did not experience a financial loss as a result of the alleged actions of Hooks and Mangum.
Mangum was arrested onMarch 6inTarboroand placed under a$110,000secured bond. Hooks was arrested onMarch 7inRocky Mountand placed under a$190,000secured bond.
The Department of Insuranceemploys 20 sworn state law enforcement officers dedicated to investigating and prosecuting claims of insurance and bail bonding fraud. Since Insurance CommissionerWayne Goodwintook office in 2009, criminal investigators have received more than 13,500 complaints, resulting in 575 arrests, 320 criminal convictions and more than 100 pending court cases. These efforts have delivered more than$47.9 millionin restitution and recoveries for victims.
An estimated 10 centsof every dollar paid in premiums goes toward the payment of fraudulent claims. To report suspected fraud, contact the Department of Insurance Criminal Investigations Divisionat 919-807-6840. Callers may remain anonymous. Information is also available at www.ncdoi.com.
TNS hc11-120309-JF78-3800717 StaffFurigay
|
Copyright: |
(c) 2012 Targeted News Service |
|
Source: |
Targeted News Service |
|
Wordcount: |
445 |
