Insurance Insights

October 11-17, 2010

The economic downturn has brought with it an increase in insurance fraud. I am proud to say our Criminal Investigation Division is on top of things. In July James N. Pickard of Pulaski County entered a negotiated plea of no contest to one count of Theft of Property in excess of $2,500 which is a Class B felony.
An insurance agent, Pickard was accused of receiving premium payments from consumers and not forwarding the premiums to the insurance carriers.
He was sentenced to five years probations, payment of a $400 fine, and 30 hours of community service.
I am pleased to report that prior to entering his pleas, Pickard made restitution to the victims totaling $8,860.
In September, Joe Hagler of Boone County entered a negotiated plea of guilty to one count of Fraudulent Insurance Acts which is a Class D felony.
Hagler was accused of submitting false prescription claims to Arkansas Blue Cross Blue Shield in order to generate unearned payments.
He was sentenced to three years probation, 20 hours of community service, and payment of $9,444 restitution. Hagler, sentenced as a first offender pursuant to Act 346 of 1973, also received a $250 fine.
Less than two weeks ago, Shane Keddy of Pulaski County entered a negotiated plea to one count of Fraudulent Insurance Acts (Class D felony) after being accused of possessing a forged insurance card which he presented to a wrecker service in order to retrieve his vehicle from impoundment.
He was sentenced to three years probation and ordered to pay a $1,000 fine. Keddy also received credit for 10 days he served in the Pulaski County jail. He was sentenced as a first offender pursuant to Act 396.
As much as I hate to see an increase in insurance fraud, I receive some solace in knowing we have a division within the Arkansas Insurance Department whose sole purpose is to investigate fraud and bring those who perpetrate it to justice.
The Arkansas Insurance Department is located at 1200 West Third Street in downtown Little Rock. 1-800-852-5494. www.insurance.arkansas.gov
Jay Bradford was appointed Arkansas Insurance Commissioner by Governor Mike Beebe on January 15, 2009.