May 21, 2007


OUTSTANDING FRAUD FIGHTERS RECEIVE AWARDS IN VIRGINIA

RICHMOND, Va. – Nine Virginia “Fraud Fighters” were recently recognized by the Virginia State Police (VSP) Insurance Fraud Program (IFP) during the Virginia Chapter of the International Association of Special Investigation Units (VAIASIU) Annual Fraud Seminar in Richmond. The Fraud Fighters Award was established in 2005 by the IFP to recognize those individuals who set the standard for fighting insurance fraud in Virginia.

Nominees for the Fraud Fighters Award came from the Virginia insurance industry, the law enforcement community and the commonwealth’s attorneys. The awards were based on the nominees’ contributions to the Virginia insurance industry anti-fraud efforts, which included their involvement and contribution to investigations; prevention and pro-active activities; enforcement; interaction with the insurance community; and financial impact by recoveries and restitution resulting from their fraud-fighting efforts.

The recipients of the 2007 Fraud Fighters Award were: Jennifer Clarke, senior special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF);  Jerry Dexter, lead investigator with GEICO Insurance; J. Bishop Ravenel, assistant commonwealth’s attorney for Portsmouth; Raymond A. Seal, senior special agent with the VSP Insurance Fraud Program; Jeffrey L. Spencer, special investigator (retired) with State Farm Insurance; Sergeant Richard A. Vaughan, Wythe County Sheriff’s Office; Robert L. Werner, FBI special agent;  Philip Wong Won, senior investigator with Erie Insurance; and the Virginia State Police Search and Recovery Team.

• Senior Special Agent Jennifer Clarke of the ATF has shown exceptional leadership in the pursuit of the Scott family of Ewing, Va.  The case began in 2003 with prescription fraud in Lee County and arson in Kentucky.  Subsequent investigations uncovered much more.  Under Clarke’s leadership, the investigative team exposed a family heavily involved in insurance fraud and other criminal activities of all kinds, from arson to identity theft, false auto and injury claims, burglaries, narcotics distribution and more. Her team tackled a massive amount of information including more than 20 years of records; and in 2004 Clarke was able to present evidence to a federal grand jury that included nearly 100 violations of federal laws.  As a result, 14 members of that family received sentences ranging from 10 months to 178 months and were ordered to make restitution of more than $300,000.
   

• When a crook bilked hundreds of thousands of dollars from elderly citizens in Hampton Roads, J. Bishop Ravenel, who was the Assistant Commonwealth’s Attorney for Portsmouth at the time, made sure this fraudster was out of business. With victims ranging from 58 to 85 years of age, some of them paying thousands in consulting fees, the suspect was investigated, arrested and charged with thirteen counts of Obtaining Money by False Pretense.  Determined to prove the threat this person was to the elderly citizens of Hampton Roads, Ravenel invested himself in the planning and research of the case.  As the defense attorney sought to suppress charges, Ravenel’s hard work resulted in the motions being overruled by the court.  After the failed attempt at suppression, the suspect pled guilty to four charges.  Next, Ravenel presented the testimony of sixteen witnesses in a five-hour sentencing hearing that resulted in the convicted fraudster being seen by the court as a threat to the community and sentenced to the maximum of twenty years in prison for each charge.  All but ten years were suspended with 20 years of supervised probation upon release from prison. Because of Ravenel’s dedication, commitment and perseverance as a prosecutor, this fraudster and white collar criminal will no longer be a threat to the elderly.
   

• Raymond A. Seal, Virginia State Police senior special agent, has been fighting insurance fraud since the inception of the Insurance Fraud Program in 1999.  In the last two years alone, Seal has worked on over 200 notifications, opening and closing more than 20 cases, which led to the arrest of a dozen people on insurance fraud related charges.   Seal provided invaluable input to the development of the computer-based training program for the Insurance Fraud Program. Some of his more memorable cases that resulted in successful prosecutions include a man with a 25-year history of staging motor vehicle crashes, a woman who faked electrocution to pursue a $3.5 million lawsuit, a drywall hanger who got hung up by his workers’ compensation claims, and the pursuit of an insurance company’s own claims handler who embezzled to the tune of $28,000.  Seal continues to provide dedicated leadership to the VSP, service to the citizens of the commonwealth, and set the standard for insurance fraud investigations.
   

• Jeffrey L. Spencer has provided significant service to the anti-insurance fraud efforts, both through his long and successful career in the Organized Activities Unit of State Farm Insurance and through his service to the Virginia Chapter of the International Association of Special Investigation Units (IASIU).  Beginning his career with State Farm Insurance in January 1971 in Charlottesville, Jeff has consistently provided thorough investigations in both the property and casualty arenas.  Having served in Norfolk, Danville and Roanoke, as well as Durham and Raleigh, prior to returning to Richmond, Jeff was regularly sought out to provide investigative guidance, particularly in the investigation of organized and casualty fraud.  His participation in industry organizations, especially the VAIASIU, has contributed greatly to the exceptional anti-fraud partnership that exists today between the insurance industry and law enforcement.  Awarded a Life Membership to Virginia IASIU in 2006, Jeff continues his strong involvement in the Virginia chapter even during his retirement and is currently serving as the Chairman of the Membership and Awards Committee. 
   

• Wythe County Sheriff's Office Sergeant Richard A. Vaughan worked relentlessly to solve three insurance fraud cases.  The first involved a Wythe County couple who staged a burglary in their residence, poured gas throughout the home, then filed a claim with their insurance company.  The second case was a report of an automobile theft.  After learning that the vehicle was recovered only three miles from where it was stolen, Sgt. Vaughan became suspicious.  The vehicle, which was partially submerged, was recovered from a local quarry.  Sgt. Vaughan also learned that the vehicle had mechanical defects prior to the reported theft.  The third case involved the alleged burglary and larceny of items from a residence.  The alleged victim reported that subjects had broken into his residence and had a party.  He filed a claim with Erie Insurance for several thousand dollars.  After interviewing several of the subjects who attended the party, Sgt. Vaughan became suspicious of the owner.  A consent search of the residence revealed many of the items that were allegedly stolen, and enough probable cause was obtained for an arrest warrant.  The subjects in all of these cases were convicted and ordered to pay restitution. The tenacious work of Sgt. Vaughan, combined with the spirit of cooperation between the VSP and insurance investigators, has helped to stamp out fraud in Wythe County.
   

• Special Agent Robert L. Werner of the FBI has distinguished himself in the last ten years as a member of the FBI’s Northern Virginia-based Health Care Fraud squad.  Through his persistence, he has investigated numerous cases from initiation to prosecution, including follow-up on convictions and restitution. His tactics and determination have created a reputation of diligence.  Werner’s proactive style and use of evidence have brought key successes to many investigations including a criminal gang who filed property and injury claims, targeted innocents and utilized more than 40 Virginia DMV identities. In another case, a Maryland man charged with fictitious property damage visited Virginia to commit the same types of crimes to pay for his Maryland defense.  Werner assembled a complete package for the prosecutor to ensure an indictment. A review of Werner’s fraud fighting efforts revealed 34 federal convictions, four local convictions, $5,470,806 in federal court-ordered restitution and $35,239 in local court-ordered restitution.  Werner has become as well known and respected as any one person can be in law enforcement and insurance efforts to detect, deter, investigate and ultimately prosecute fraud.
   

• Philip Wong Won has been with Erie Insurance for more than 10 years. He is tireless in his pursuit of those who attempt to commit fraud against Erie Insurance in particular, or the industry in general. Wong Won is relentless in his quest for information that either proves a claim to be valid or to contain elements of fraud.  He personally investigates more than 100 claims annually.  Wong Won has been active in the local IASIU during his tenure with Erie Insurance, serving in many capacities.  He recently stepped down as president of the Virginia chapter, although he continues to serve on the legislative committee, which keeps him active on the national level.
   

• Jerry Dexter, lead investigator for GEICO Insurance, received hot line information from the VSP Insurance Fraud Program in Chesapeake, that one of GEICO’s insureds intentionally pushed his new Nissan XTerra into an unidentified river near West Point, Va.  The insured wanted to put an end to payments that he couldn’t afford. Dexter requested assistance from First Sergeant Mike Berry, supervisor of the VSP Search and Recovery Team, formerly the VSP Dive Team, to help search a few river locations in the West Point area targeted by a VSP analyst as suitable for disposing of a vehicle in the manner described by the informant. The Dive Team and Dexter worked many long hours to successfully locate and recover the vehicle, which had been fraudulently reported stolen by the GEICO policy holder.
   

• Continuing with the same GEICO case, the professional and dedicated hard work of the VSP Search and Recovery Team (SART) resulted in the successful recovery of the submerged Nissan XTerra. This is a great example of the cooperation between law enforcement and the insurance industry to identify and reduce insurance fraud. This case could not have been closed without the talents, expertise and equipment of the SART; VSP special agent William A. Royall; and William R. Henry, VSP analyst.
   

• In addition, the following individual members of the SART, along with the other Insurance Fraud personnel who worked on this case, received Certificates of Appreciation.
  Division One, Richmond: Sergeant Lee T. Elliot, Sergeant Mitchell A. Smith, Trooper Stephen M. Rusher, Trooper James C. Smith
  Division Two, Culpeper: Trooper Adam C. Galton
  Division Three, Appomattox: Special Agent R. Clay Overholt, Trooper Andrew S. Trombley
  Division Four, Wytheville: Trooper Jason C. Stanley
  Division Five, Chesapeake: Trooper Steven T. Kean, Trooper Rory N. Williams, Trooper Carl R. Willoughby, Special Agent William A. Royall, Analyst William R. Henry
  Division Six, Salem: Trooper John F. McAfee, Trooper
  J. Tommy Morris

The Insurance Fraud Program of the Virginia State Police was established January 1, 1999, through legislation approved by the General Assembly. The program’s mission is to address the growing crime of insurance fraud in Virginia by conducting thorough professional insurance fraud investigations; by providing insurance fraud training for law enforcement personnel; and by increasing citizen awareness and cooperation through educational and rewards programs.