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BECKLEY, W.Va. (WCHS) — A Raleigh County man was sentenced to one year and one day in prison for wire fraud and money laundering, according to federal prosecutors.
Paul Richard Massey, 51, of Shady Spring, admitted to issuing fraudulent payments as an insurance claims adjuster and using money to fund a powersports business that he owns, federal prosecutors said.
According to federal prosecutors, Massey was employed as a claims adjuster for Allstate Insurance Company from 2015 to June 2019 and was routinely assigned claim files to investigate after Allstate customers filed claims under their insurance policies.
Allstate authorized Massey to investigate assigned claims, determine coverage and coordinate with insured customers and others to bring claims to conclusion.
Federal prosecutors said Allstate entrusted Massey to issue settlement check payments to policyholders and businesses on behalf of Allstate to settle insured property damage claims.
According to federal prosecutors, Massey admitted to authorizing and issuing a $15,110.29 check on behalf of Allstate to a business called American Mitigation Services LLC, also known as AMS Cleaning, on Dec. 26, 2018. The check was issued for mitigation work allegedly performed by AMS Cleaning and was deposited into AMS Cleaning’s bank account, which Massey admitted was fraudulent as AMC Cleaning completed no work to justify the payment.
Massey further admitted that he had a business relationship with AMS Cleaning and was an...
I was shocked by this stat the other day. The National Insurance Crime Bureau says identity theft–driven insurance fraud is projected to spike 49% by the end of 2025. Really, insurance fraud? You ...