December 12, 2006

VIRGINIA MAN’S PHONY RECEIPTS
LEAD TO REAL INSURANCE FRAUD CONVICTION

It’s always a good idea to hold on to receipts for major purchases in case those items are lost, stolen or destroyed, but make sure those receipts are valid before you file an insurance claim.  An Appomattox man who filed a claim to replace possessions lost in a fire, found himself on the wrong side of the law when a Virginia State Police (VSP) insurance fraud investigation determined the receipts were fraudulent.

Fred Caldwell filed a claim with his insurance company as a result of a suspicious fire on June 18, 2004, that destroyed a metal building and its contents.  The building was located behind his residence just off U.S.Rt.460 east of Appomattox.  Both the metal building and its contents were insured.

Notified by the insurance company that Caldwell’s receipts might be bogus, Senior Special Agent Ronald H. Campbell’s investigation uncovered more than $10,000 in receipts from a service station for items that were never purchased; a furniture store receipt of more than $3,500 that was not an actual receipt but a customer worksheet; and an altered $1,300 receipt that was originally $300.   

Caldwell was convicted on Nov. 30, 2006 of Grand Larceny in Appomattox County Circuit Court.  He pleaded guilty to Obtaining Money by False Pretense and as a result of a plea agreement was given a 10-year suspended sentence with three years active probation.  Caldwell was also ordered to pay $14,000 in restitution to the insurance company and must submit to random drug testing.

 The VSP is committed to “Stamp Out” insurance fraud occurring in the Commonwealth. If you have knowledge of a fraudulent insurance scheme or suspect you may have been the victim of insurance fraud, report the activity to Virginia State Police Insurance Fraud Program on the insurance fraud hotline at 1-877-62FRAUD (1-877-623-7283) or visit www.stampoutfraud.com.  Tipsters may also be eligible to receive a reward of up to $25,000.