Top 10 insurance fraud cases of 2000 announced; Pennsylvania Insurance Fraud Prevention Authority releases annual list

The Golden Globes. The People's Choice Awards. It's the time of year for annual honors. And once again, the Pennsylvania Insurance Fraud Prevention Authority (IFPA) has compiled a "Top 10" list that recognizes some of the more dubious achievements of 2000.

The IFPA's annual Top 10 List of Pennsylvania Insurance Frauds offers details on some of the most intriguing fraud cases of 2000. The list was selected from cases handled by the 13 IFPA-funded law enforcement units throughout the state. In 2000, those units were responsible for 285 arrests.

The crimes on this year's list provide a cross-section of insurance frauds that are plaguing the industry and driving up costs for consumers. The list contains a variety of criminals: some are not very bright, some are greedy, and some are downright dangerous. But they all have one thing in common: they were charged with committing insurance fraud, a felony crime in the Commonwealth.

The IFPA-funded unit that handled each case appears in parentheses after each summary. For contact information for each unit, see the end of this release.

1. Chang Ho Choi received an insurance payment after a 1998 fire in his home. But subsequent investigation revealed the incident was arson, and suspicion turned to Choi, who had mounting debts and a desire to move out of state. Choi, who had since moved to Georgia, was convicted of arson and insurance fraud in November 2000 and sentenced in January to pay $123,735 in restitution and serve 3-6 years in state prison. (Philadelphia District Attorney Insurance Fraud Unit)

2. Carolyn Weber, a Pittsburgh pharmacist, filled 237 fake prescriptions over a 20-month period. Weber dispensed the drugs to herself, family members, and friends, then fraudulently billed various insurers. She was sentenced to serve one year of probation and undergo drug and alcohol treatment. Weber, who pleaded guilty, will also pay restitution of $3,452. (Office of Attorney General, Insurance Fraud Section)

3. Alfred Thompkins sought $3 million in damages for injuries he claimed he received while incarcerated. According to his suit, Thompkins said he was paralyzed below the waist during a bus accident when he was being transported to the Philadelphia Industrial Correctional Center. The City of Philadelphia settled the suit for $500,000, but Thompson continued to demand $2.5 million in a separate malpractice case. The Philadelphia district attorney later filed insurance fraud and other charges against Thompkins, alleging that the bus accident was minor and that Thompkins never lost use of his legs. Thompkins is scheduled to go to trial in February 2001. (Philadelphia District Attorney Insurance Fraud Unit)

4. Ernest Woodson used a classic "slip-and-fall" scheme at three York County supermarkets to make fraudulent insurance claims. Woodson feigned injuries to his ankle and back as a result of fake spills, and asked for compensation for lost wages. Woodson, now living in Millville, NJ, pleaded guilty to insurance fraud and theft charges in July. He was sentenced to serve 85 days in county jail and five years' parole. Woodson was also ordered to pay restitution of $5,537 for these and earlier "slip-and-fall" incidents. (Office of Attorney General, Insurance Fraud Section)

5. Arthur Gelembiuk of Chester County received more than $25,000 from clients to pay for annuity policies. But instead of issuing the policies, Gelembiuk kept the money for his personal use. He was sentenced to 30 days to six months' house arrest and three years' probation. He was also sentenced to pay restitution for the full amount he received. (Office of Attorney General, Insurance Fraud Section)

6. Frederick and Virginia Link, an Allegheny County couple, claimed tools were stolen from their garage during a 1999 burglary. But the couple also claimed several of the same tools were taken during a 1995 break-in. They allegedly used the same photograph of the stolen items to collect payment from insurers in both instances. Police were also suspicious of graffiti found in the Links' basement after the 1995 incident. A spray-painted expletive began with a backwards letter "F". On several documents, including his insurance claim, Frederick Link had signed his own name with the letter "F" reversed. The Links were charged with insurance fraud and are awaiting trial. (Allegheny County Police Department)

7. Wayne Seanor of Westmoreland County collected workers' compensation payments as a result of a back injury. But investigation revealed that Seanor continued to receive benefits for months after a doctor deemed him fit to return to work. During that time, he was seen unloading cement and lumber from trucks and doing roofing work. Seanor pleaded guilty to insurance fraud in February and was ordered to pay $3,974 in restitution. He is also serving five years' probation. (Allegheny County Insurance Fraud Prosecution Unit)

8. Revena Milligan of Montgomery County sustained injuries in an auto accident. Milligan claimed damages of $175,000 from her insurer because the injuries cut short her basketball career at Temple University. One problem: she never played there. A letter from the Temple coach that Milligan submitted as evidence turned out to be a forgery. Milligan pleaded guilty to attempted theft by deception and was sentenced to probation and community service. (Office of Attorney General, Insurance Fraud Section)

9. James Adams of Atlas, PA, received workers' compensation benefits after sustaining an on-the-job back injury while working as a coal miner. Investigation revealed that Adams worked as a contract employee at a different coal mine while he received disability payments. He pleaded guilty to insurance fraud and was sentenced to one month in prison, seven months of home confinement, and probation. (Office of Attorney General, Insurance Fraud Section)

10. Stephen Smith of Northampton County told local police his car had been stolen from an Allentown hotel and filed a claim with his insurer. But police discovered that Smith had actually abandoned his car after an accident in New York City, and police there had taken the car into custody. Smith eventually admitted that he fabricated the story. He was convicted in June 2000 of insurance fraud and sentenced to three to 24 months in county prison. He was ordered to pay $5,917 in restitution. (Lehigh County Insurance Fraud Task Force)

The Pennsylvania Insurance Fraud Prevention Authority was created by the Pennsylvania State Legislature when it passed the Insurance Fraud Prevention Act in 1994. The act enables the IFPA to arm law enforcement and prosecutors with the resources necessary to fight insurance fraud in the Commonwealth. The IFPA collects funds by assessing insurance companies who write polices in the state. No taxpayer dollars are used.

The IFPA's Funded Investigative Units:

• Allegheny County District Attorney's Office: 412-350-3109
• Allegheny County Police Department: 412-473-1200
• Cumberland County District Attorney: 717-240-6217
• Delaware County District Attorney: 610-891-4713
• Erie County District Attorney: 814-451-6349
• Harrisburg Bureau of Police - Arson Unit (Harrisburg): 717-255-3186
• Lehigh County District Attorney's Office: 610-770-3817
• Millcreek Township Police Department: 814-833-7777
• Montgomery County District Attorney's: 610-292-2176
• Northeastern Regional Task Force: 570-963-5177
• Office of the Attorney General - Eastern Region (Norristown): 610-631-5164
• Office of the Attorney General - Headquarters (Harrisburg): 717-787-0272
• Office of the Attorney General - Western Region (Pittsburgh): 412-565-7680
• Pennsylvania State Police - Fire Marshal Division (Harrisburg): 717-783-5529
• Philadelphia District Attorney's Office: 215-686-8723

Source: Pennsylvania Insurance Fraud Prevention Authority