A Denver, Colorado contractor has been charged with several counts of felony theft after allegedly scamming elderly homeowners through his roofing and restoration business.
Jonathan McMillan, 41, is the owner of Lifetime Roofing and Restoration. According to Jefferson County court documents, McMillan hired sales people to go door-to-door soliciting roofing business from homeowners with houses damaged primarily by hailstorms. Those employees were instructed by McMillan to have the homeowners sign contracts and collect as much insurance claim payments as quickly as possible.
The National Health Care Anti-Fraud Association (NHCAA) recently presented its 2016 Investigation of the Year Award to NICB Supervisory Special Agent Tom Downey and Special Agent Malisa Trimble of the West Region. The Agents received the award for their “Operation Backlash” investigation, which resulted in the indictment of eight defendants in November of 2015, 13 defendants in January of 2016, and federal indictments against three individuals and four corporations.
“Operation Backlash” was an extensive 4-year multi-agency undercover operation initiated to combat entrenched corruption in the California Workers’ Compensation System (CWCS) private insurance program. The loss to CWCS was in excess of a half-billion dollars. The sheer scale of this fraud makes it one of the largest insurance bribery schemes in workers’ compensation ever uncovered in San Diego County.
The case aggressively targeted a vast web of multiple conspiracies involving doctors, attorneys, and chiropractors working with patient call centers, ancillary service providers, and medical marketers. The targets all paid and received several million dollars in illegal kickbacks.
To date, a total of 22 individuals and 10 corporations have been indicted and plea agreements have been secured with 6 individuals and 3 corporations tallying over $2.1 million in forfeitures. As a result of these actions, 13 criminal organizations have been disrupted and 3 criminal organizations have been dismantled.
SSA Tom Downey and SA Malisa Trimble with their NHCAA Investigation of the Year Award
In this edition of Fraud Files we take a look at the theft of over 3,500 boots in an alleged cargo theft in Texas. An insurance claim was paid for over $400,000 for the loss, but in August authorities went undercover and arrested two suspects for trying to sell the stolen items.
One of the main services NICB provides is assisting law enforcement as they investigate insurance fraud and vehicle theft. In this episode of Fraud Files we focus on on a motorcycle that had been reported stolen with one that was being offered for sale on Craigslist.
The original owner contacted the Macomb Auto Theft Squad after he saw the truck listed for sale on Craigslist. Teaming with the Wayne County Auto Theft Team, undercover detectives posed as buyers and made a deal with the seller to buy the pickup for $8,000.
At an arranged meeting, Lockridge arrived in the stolen truck and was arrested. The seized F350 was re-tagged with a vehicle identification number belonging to a 2001 Ford F150 pickup.
Detectives searched the suspect’s home in Detroit where they recovered two stolen motorcycles and a stolen Chevrolet Trailblazer from a garage. The Trailblazer belonging to an active Marine who was away on duty.
In this edition of Fraud Files we take a look at two schemes that occurred in New Jersey. One involving a financial scheme with auto loans and the other regarding medical fraud with a dishonest doctor.
The Dallas Morning News recently went out with the Texas Department of Insurance and witnessed firsthand their fight against roofing scams after the Dec 26th tornadoes hit the Dallas area.
Workers are removed from a roof in Rowlett, TX for not having a permit.
As we reported yesterday, after a disaster, contractors will often go door-to-door in neighborhoods that have sustained damage to offer clean up and/or construction and repair services. Most of these people are reputable, but many are not. The dishonest ones may execute schemes to defraud innocent victims. One common scheme is to pocket the payment and never show up for the job, or never complete a job that was started. Another scheme is to use inferior materials and perform shoddy work that is not up to code in order to pocket more profit.
Last year the TDI received 15,000 complaints regarding insurance fraud.
The best part is that roofers are not the sharpest shingles in the box. They don’t realize as they are being interrogated by TDI police that the state insurance department has no regulatory authority over them.
Here’s a video of the disaster area as law enforcement and TDI officials were on the lookout for potential fraud.
The Department of Homeland Security and their Border Enforcement Task Force (BEST), seized 249 stolen luxury cars worth more than $16 million in New York. Seven people were charged with conspiring to export the cars to various countries in West Africa.
Authorities in New Jersey charged 21 people in connection with an international carjacking and stolen car trafficking ring that allegedly involved stealing luxury cars and shipping them across the country and to West Africa. The 16-month long investigation called Operation 17 Corridor recovered just over 90 stolen vehicles.
“The criminals in this ring scouted golf courses, pricey restaurants, malls and suburban driveways to find the specific luxury cars they coveted, working in teams to commit armed carjackings and other thefts,” stated New Jersey Attorney General John J. Hoffman. “While fortunately we have not had anyone shot or murdered during a carjacking in this case, we’ve seen in other cases how quickly things can turn deadly when carjackers carry out the type of armed ambushes this ring committed. We’ve completely dismantled this dangerous network and charged its members with first-degree crimes.”
Over $4 million in stolen vehicles were taken from communities in North and Central Jersey and shipped to West Africa. Members of the theft crew stored the vehicles at locations including short-term airport parking garages, housing complexes, warehouses and shipping containers to make sure tracking devices would not lead law enforcement to the ring.
The stolen vehicles were then sold domestically as well as shipped internationally to Ghana, Nigeria, Guinea, and Gambia, where vehicles of these types sell for prices in excess of three times the market value in the United States.
In this episode of Fraud Files we focus on the owner and the manager of a body shop in Hialeah, Florida. They were arrested and charged with insurance fraud and grand theft following a three year investigation.