Arrest - InsuranceFraud.org

An uncle and nephew have been indicted in New York for allegedly selling over 40 unauthorized insurance policies that claimed to provide more than $250 million in coverage for homeowners, construction companies, and businesses at airports overseen by the Port Authority of New York and New Jersey, according to a report from AM Best.

The Manhattan District Attorney’s Office announced that Timothy “Tim” Barry Derham and Donald “Trip” Derham are accused of issuing fraudulent policies through Barbados-based captive International Underwriting Insurance Co.

According to AM Best, Tim Derham reportedly owns the offshore company, although a spokesperson clarified that it was sold on May 5, 2024.

The Derhams face charges of grand larceny in the second and fourth degrees, scheming to defraud, and offering a false instrument for filing.

Between March 2014 and April 2022, the company lacked authorization to conduct business in New York, according to the DA’s office. During this period, International Underwriting had a net worth under $600,000, falling short of the $45 million equity requirement for offshore insurance companies.

Despite these financial limitations, many of the company’s policies ranged from $1 million to $25 million in coverage.

Manhattan district attorney Alvin Bragg Jr. said, “New Yorkers trust that when they purchase insurance, whether to safeguard their home or operate on an airport tarmac, they are paying for protection in times of crisis. As alleged, these defendants flagrantly lied and issued worthless insurance policies from their offshore company while pocketing thousands in premiums and fees.”

Tim Derham is accused of making decisions about which policies to issue and their pricing, while Trip Derham handled operational and management duties, including creating false business records. Neither defendant informed clients that International Underwriting was not an authorized insurer in New York.

At one point, an employee of Inter-Insurance allegedly requested confirmation from Trip Derham about International Underwriting’s authorization status in New York. In a follow-up email to AM Best, Trip acknowledged the company lacked such documentation. The DA’s office also said International Underwriting did not report its policies to the Excess Life Association of New York.

Additionally, the company is accused of creating fake Certificates of Liability Insurance, which were filed with the Port Authority on at least four occasions. These certificates falsely claimed that International Underwriting was authorized to write business in the U.S.

The case dates back over five years when a janitorial company owner used a policy issued by International Underwriting as coverage for a construction company.

A company spokesperson denied responsibility to AM Best, claiming that the $250 million in coverage cited by the DA represents the total amount the captive has written since its inception in 2001. The company is cooperating with authorities and seeking a resolution.

A Wilson man has been charged with insurance fraud, obtaining property by false pretense and attempting to obtain property by false pretense.

North Carolina Insurance Commissioner Mike Causey announced on Friday the arrest of Adrian Brown for these felonies. According to special agents with the NC Department of Insurance’s Criminal Investigations Division, Brown filed a false police report on March 30, saying that his vehicle had been totaled, but further investigation revealed that he crashed it himself in an attempt to receive money for the replacement.

Brown was arrested and held without bond due to several unrelated drug and failure to appear in court cases.

Two arrests have been made in connection to the discovery of 18 decomposing corpses at a funeral home in Georgia, with its owner being busted for allegedly abusing dead bodies and insurance fraud — along with an alleged accomplice — for altering the cause of death on a death certificate to obtain “additional life insurance proceeds,” according to investigators.

Chris Johnson, 39, and James Sirmans, 52, were each charged Sunday with two counts of insurance fraud and one count of conspiracy to commit insurance fraud over a month after the bodies were found at the Johnson Funeral Home in Coffee County. Authorities arrested Johnson on Oct. 27 but initially only charged him with 17 counts of abuse of a dead body, according to the Georgia Bureau of Investigation. Sirmans was arrested Sunday following a probe by the state’s Office of the Commissioner of Insurance.

Johnson and Sirmans are accused of altering the cause of death for at least one person in 2022, which led to higher insurance payouts.

In addition to the new insurance allegations, Johnson also got hit with charges of theft by deception, forgery and submitting fraudulent vital records in connection to the alleged fraud scheme. Authorities also charged him with theft by taking and six counts of violation of vital records registration in relation to the “ongoing investigation” into the remains found in his funeral home and “related business practices,” according to GBI officials.

“With the assistance of the Ben Hill County Sheriff’s Office, Sirmans was taken into custody without incident and booked into the Coffee County Jail,” the bureau said in a Sunday press release. “He has since been released on bond.”

According to local reports, the families of at least 16 bodies found at Johnson Funeral Home who have been identified have been demanding answers about what happened to their loved ones, as have others who’ve used Johnson’s services in the past.

Local ABC affiliate WALB reported in November that Johnson’s website for his funeral home listed 36 burials or cremations conducted for individuals in 2024. Half of the 18 bodies found at the property were from this year, according to the station.

Some of Johnson’s clients were originally given ashes, while others were told their family members had been buried in plots that they purchased.

“I can’t have peace of mind because I don’t know what’s in that coffin,” said one of the bereaved, Janell Kirkland, in an interview with WALB. She reportedly paid Johnson over $10,000 to bury her son in 2023 at a local cemetery, which he allegedly never did.

On top of that, Kirkland wasn’t allowed to see her child on account of Johnson forcing her to do a closed casket service, which she thought was necessary.

“He wasn’t viewable is what I got told,” Kirkland said. “And I believed that because [her son spent] several days of being alone in a home before he was found.”

Authorities say they are still working to identify the remaining two bodies that were discovered at Johnson’s funeral home. Since they also found the corpses of two deceased pets — a dog and a cat — investigators are trying to confirm whether the bodies are “human remains.”

“The GBI continues its work to identify the other 2 remains that were found and expects this to occur soon,” officials said Sunday. “The GBI also continues its work to verify the cremation information and whether cremains were sent to the correct families, as well as other investigative leads.”

An investigation by Quincy Police has led to the arrest of a man in Florida who is suspected of fraud in connection with a phony insurance scam.

Detectives with the Quincy Police Department began an investigation in June 2024 in reference to a subject that had defrauded at least 10 different individuals in Quincy by claiming to be an insurance adjuster doing roof repair after a recent hailstorm. The subject would allegedly work
with the victim’s insurance company to get a claim for roof damage and never return to do the work and would then forge the victims’ names on the checks.

The suspect was identified as Scott A. Lennington, 48, of Morton. Lennington was doing business as Hagel Claims Service and was recently indicted by an Adams County Grand Jury.

Information was gained that Lennington had traveled to Florida after the passage of the recent hurricanes. Detectives were able to identify Lennington’s location and on Dec. 13, members of the Pinellas County Sheriff’s Office and Treasure Island Police Department were able to take
him into custody.

Lennington is lodged in the Pinellas County Jail and is believed to have warrants out of other jurisdictions for similar offenses totaling nearly $225,000.

Sean Alfortish, the disbarred attorney and federal felon now charged in a massive staged accident and insurance fraud scheme, will remain in jail until at least Jan. 8 after his detention hearing Friday was continued.

Trading in the street clothes he was wearing in court Wednesday right after he was arrested, Alfortish was in magistrate court Friday morning in an orange prison jumpsuit, handcuffed and shackled.

Alfortish, 57, was one of 10 defendants named in a superseding indictment unsealed on Monday in the sprawling six-year case the feds call “Operation Sideswipe.”

The case, in which nearly 50 people have pleaded guilty, has outlined how “slammers’ packed cars with willing participants, intentionally crashed into 18-wheelers, then worked with allegedly crooked attorneys to file fraudulent lawsuits. Authorities say hundreds of millions of dollars were paid to settle dozens of bogus claims.

A hint that the indictment was coming came when federal agents showed up early Monday at Alfortish’s Lake Vista home, but he was not home.

Of the new defendants, the U.S. Attorney’s office is requesting detention for only two: Alfortish and Leon “Chunky” Parker, who previously beat a murder charge but is now facing a new case in Jefferson Parish accusing him of being a marijuana dealer.

Alfortish’s attorney, Shaun Clarke, said his client is eager to go to trial.

“This investigation has been going on over five years,” Clarke said. “It’s not often that a client is excited about an indictment. He’s downright eager to finally get his day and court.”

Alfortish, a former Kenner magistrate judge, lost his law license and served more than two years in prison after being convicted for rigging an election to remain president of the Horseman’s Benevolent and Protective Association and raiding the group’s coffers to treat himself to lavish perks.

In an unusually revealing motion ahead of detention hearings for the two men, federal prosecutors outlined their concerns about them being flight risks and potentially dangerous to witnesses or others in the community.

“The strength of the evidence and possibility of lengthy prison sentences could very well motivate Alfortish and Parker to threaten the safety of others in the community or otherwise obstruct the proceedings, as they previously did with (Cornelius) Garrison,” wrote Assistant U.S. Attorney Michael Simpson.

Garrison was murdered in 2020 after secretly working with the FBI for months as a key government witness. Garrison told agents about staging accidents with 18-wheelers – and recruiting other scam participants – on behalf of Alfortish and Alfortish’s fiancée, Vanessa Motta.

Motta was among the defendants indicted Monday along with another high-profile attorney, Jason Giles, who was charged along with the firm where he is a partner, The King Firm. Unlike Alfortish and Parker, Motta and Giles were issued summons to schedule their surrenders to authorities through their defense attorneys.

The government’s filing, backed up by FBI interview summaries with confidential witnesses, links Alfortish and Parker, at least indirectly, to Garrison’s killing, despite the previous indictment of Ryan Harris as the alleged triggerman.

“Evidence points to Parker playing a role in Garrison’s murder,” Simpson wrote. “On Sept. 6, 2020 – just two weeks before the homicide, Parker’s Google data shows that he searched for “Cornelius Garrison…Six days before the murder, on Sept. 16th, Harris texted Parker a photograph of a 9-millimeter semi-automatic firearm that Harris unsuccessfully attempted to purchase.”

Garrison, who had previously expressed fear for this life, was ultimately killed in the foyer of his apartment with a 9-millimeter gun as his mother looked on in horror.

The prosecutors portray an even closer relationship between Alfortish and Garrison, alleging that Alfortish recruited the experienced “slammer” to stage cases that he would then hand to Motta to file fraudulent lawsuits.

When the scheme exploded into public view with indictments of dozens of defendants starting in 2019, the feds allege that “Alfortish and Motta sought to make Garrison an unavailable witness.”

“For example, Alfortish ‘offered to compensate (Garrison) if (Garrison) took the fall for the staged accidents,’ ” the prosecutor wrote. “Alfortish offered $500,000 with $100,000 upfront. Additionally, Alfortish ‘offered to move (Garrison) to the Bahamas because of the heat from the investigation into the staged accidents.’ ”

So far, 49 out of 61 defendants have pleaded guilty for various roles in the staged accidents, most of them low-level participants who packed into cars, then filed lawsuits based on phantom injuries. Some went as far as to undergo unnecessary surgeries to try and increase their payoff from the bogus lawsuits and subsequent settlements.

Before Monday’s indictment naming Motta and Giles, only one other attorney, Danny Patrick Keating, had been indicted. Keating pleaded guilty in exchange for his cooperation and is awaiting sentencing next year.

A man in the Outer Banks is accused of trying to bilk an insurance company by adding a boat to his policy after it sank.

North Carolina Insurance Commissioner Mike Causey said George King of Salvo is charged with insurance fraud and attempting to obtain property by false pretense, both felonies.

Special agents in the department’s Criminal Investigations Division said King tried to add a sailboat to a Progressive Select insurance policy in July, after the boat had already capsized, and then filed a claim on the boat for $10,000.

King is scheduled to appear in Dare County District Court on Jan. 16.

Police arrested a Miami-Dade man after, investigators said, he defrauded customers of hundreds of dollars in a life insurance fraud scheme. Now one of the families who said they were targeted by him is speaking out and sharing their story.

Sisters Deloris Long Byrd and Melody Byrd spoke with 7News on Wednesday. They said they late father, James Byrd, was one of Neville Guy Reid’s victims.

“It was bad enough we lost our dad, but to go through this was like, it’s horrible,” said Melody.

The siblings said they feel one step closer to justice after learning that Reid, 63, is behind bars.

“The unnecessary trauma that you added to our lives,” said Long Byrd.

Reid appeared in bond court on Wednesday, a day after his arrest. The suspect faces 38 charges, including organized fraud, racketeering and exploiting an elderly person.

According to investigators, Reid began his scam as early as 2012 when he would defraud customers by selling them a life insurance policy, collect his quarterly commission and allow the policy to lapse without the customer knowing.

Officials said he lost his license back in 2014 but continued pocketing the premiums for another nine years.

The Byrd sisters said their father died of a heart attack in October of 2023.

“He was our best friend,” said Long Byrd.

“Our daddy was our best friend,” said Melody.

When the family tried to pay for his burial with the life insurance he had signed up for, their nightmare began.

“The funeral home called to say that the insurance information that was given to us is not active,” said Long Byrd.

Left in shock, the family started investigating what led to the policy cancellation. They said they uncovered 71 pages of receipts between 2012 and 2023 where their father paid Reid for what he thought was a life insurance policy with Occidental Life Insurance.

Ring video provided by the family captures Reid making a friendly visit to the Byrd family 10 days before James died to collect his quarterly payment.

“The last payment was 10 days before our father passed away. He came out on Oct. 4, 2023 to collect a payment . My dad goes outside, hands him money, he hands my dad the receipt,” said Melody.

Feeling scammed by Guy Reid, the family took to social media to warn others about the fraudulent life insurance agent and the pain he had caused the family.

The social media posts prompted a year-long investigation that revealed multiple other victims and ultimately led to Reid’s arrest.

“To read the charges, and just to know that it’s more than just our family that he did this to, it’s heartbreaking,” said Melody.

Reid’s bond was set at close to $72,000. It remains unclear whether or not he will be able to post it.

He has also been ordered to stay away from the victims and their families.

On June 26, 2026, detectives of the Lehigh County District Attorney’s Office filed a criminal complaint charging 23 year old Pedro D. Delgado of Allentown, PA with Insurance Fraud. According to the complaint, it is alleged that the defendant obtained an Allstate Insurance auto policy after he was involved in an accident and in filing a claim for the accident, the defendant allegedly misrepresented when the accident occurred to reflect his Allstate policy was in place beforehand.

On June 23, 2026, detectives of the Philadelphia District Attorney’s Insurance Fraud Unit arrested 47 year old Lashaunda N. Stewart of Philadelphia, PA and charged her with Insurance Fraud and Attempted Theft by Deception. According to the criminal complaint, on December 13, 2025, Stewart purchased a renter’s policy with American Strategic Insurance Company. On December 16, 2025, Steward filed a personal property claim for an alleged water pipe that burst on December 13, 2025, causing water damage to her personal property. According to the complaint, an investigation revealed that the water damage actually occurred on December 11, 2025, prior to the inception of the renter’s policy.

On June 22, 2026, detectives of the York County District Attorney’s Office filed a criminal complaint charging 33 year old Gurpreet S. Multani of York, PA with Insurance Fraud and Attempted Theft by Deception. According to the complaint, Multani applied for auto insurance with Progressive Insurance on September 4, 2024, to include two vehicles with a $1,000 comprehensive deductible. On February 13, 2026, Multani begins to submit a windshield damage claim through the Safelite portal that is used by Progressive and listed the date of damage as January 20, 2026; however, the claim was not completed. On March 28, 2026, Multani starts another claim for windshield damage and listed the date of damage as October 31, 2026. Multani’s repair appointment was canceled as Multani reportedly could not afford to pay his $1,000 deductible. On April 15, 2026, Multani contacted Progressive to lower his comprehensive glass deductible from $1,000 to $0 specifically on the vehicle in which he had started prior windshield claims, and on April 21, 2026, Multani filed a windshield damage claim for the same vehicle and listed the date of loss as April 20, 2026, with the repair estimate of $1,026.94. According to the complaint, Multani stated that the windshield had not been damaged prior to the April 21, 2026, claim; however, the records of Multani’s prior claims that were not completed contradicted Multani’s denial of prior damage.

Uncle, nephew face insurance fraud charges in New York