Ex-National General Loss Representative and Mother Arrested for Fraudulent Claims Scheme

A former loss representative for National General Insurance Co., Horace Kelly, 40, and his mother, Greta Patterson, a 62-year-old minister, have been arrested in Coffee County, Georgia, following an extensive investigation into a fraudulent scheme that allegedly resulted in a staggering $141,000 loss for the insurer.

The investigation, initiated by the Lowndes County Sheriff’s Office in August 2022, revealed that Kelly exploited his position to create false insurance claims. Over a seven-month period, he issued checks totaling $146,167, which were then cashed or deposited by both Kelly and Patterson. Reports indicate that they processed more than 100 checks throughout 2022, with evidence suggesting that a portion of the funds was funneled into Patterson’s personal bank account.

According to the Georgia Office of Insurance Commissioner and local news outlets, the fraudulent activities went unnoticed by National General policyholders, who were unaware that claims had been filed in their names. This alarming revelation highlights the potential vulnerabilities within the insurance system and raises questions about oversight and fraud prevention measures.

Both Kelly and Patterson have been charged with insurance fraud and have since been released on bond. The investigation is ongoing, and authorities have indicated that additional charges may be forthcoming as they continue to uncover the full extent of the scheme.

As this case unfolds, it serves as a stark reminder of the importance of vigilance in the insurance industry. Fraudulent claims not only impact insurers but also have broader implications for policyholders, who may face increased premiums as a result of such deceptive practices.

Topics
Profit Loss
Claims

A former loss representative for National General Insurance Co., Horace Kelly, 40, and his mother, Greta Patterson, a 62-year-old minister, have been arrested in Coffee County, Georgia, following an extensive investigation into a fraudulent scheme that allegedly resulted in a staggering $141,000 loss for the insurer.

The investigation, initiated by the Lowndes County Sheriff’s Office in August 2022, revealed that Kelly exploited his position to create false insurance claims. Over a seven-month period, he issued checks totaling $146,167, which were then cashed or deposited by both Kelly and Patterson. Reports indicate that they processed more than 100 checks throughout 2022, with evidence suggesting that a portion of the funds was funneled into Patterson’s personal bank account.

According to the Georgia Office of Insurance Commissioner and local news outlets, the fraudulent activities went unnoticed by National General policyholders, who were unaware that claims had been filed in their names. This alarming revelation highlights the potential vulnerabilities within the insurance system and raises questions about oversight and fraud prevention measures.

Both Kelly and Patterson have been charged with insurance fraud and have since been released on bond. The investigation is ongoing, and authorities have indicated that additional charges may be forthcoming as they continue to uncover the full extent of the scheme.

As this case unfolds, it serves as a stark reminder of the importance of vigilance in the insurance industry. Fraudulent claims not only impact insurers but also have broader implications for policyholders, who may face increased premiums as a result of such deceptive practices.

Topics
Profit Loss
Claims