Insurance Claims Rep Accused of Insurance Fraud

Of all people, you would think that an insurance claims adjuster is someone who would be voted least likely to commit insurance fraud. In this case, you would be wrong.

According to CNYcentral.com, a Nationwide Insurance employee, Scott Wood of Liverpool, NY, is accused of stealing almost $45,000. The money was part of an insurance settlement for a house fire in 2009 that was supposed to have been paid to a St. Lawrence County man whose home was destroyed.

Wood was investigated by the Insurance Department’s Frauds Bureau and charged on April 13^th with felony third-degree grand larceny.

As noted in the Watertown Daily Times, the investigation started when the home’s owner, Victor D. Richards, contacted Nationwide Insurance about his claim resolution. Richards told the insurance company that Wood contacted him after he was paid about $300,000 for the loss. He stated that he thought the claim had been settled and that the money he received from the insurer was the extent of the payment.

The homeowner got suspicious though when Wood told him he could get more money if the he used the services of a lawyer Wood knew. He said Wood told him he would be expected to split any additional money he received with the lawyer. The homeowner says he agreed to the offer, but doubted he would get any additional money from the insurer.

Sometime after that visit, Wood went back to the man’s home to deliver a check from Nationwide for $89,800. As a claims representative, Wood has the authority to settle claims and write settlement checks on behalf of the insurance company.  No word as to whether the mystery attorney even exists. 

Wood told the homeowner that since the lawyer wanted to keep his name out of the case, the homeowner needed to write a personal check to Wood for half of the money and that the homeowner could keep the other half. Wood also told him that he should deny the transaction ever occurred if he was contacted by the insurer.

Nothing suspicious or out of the ordinary about that request, is there?  I guess the homeowner didn’t agree.  Richards did contact Nationwide after the meeting with Wood when he allegedly wrote him the personal check for $44,900. Nationwide then promptly notified the Insurance Department’s Frauds Bureau.

Wood was fired once investigators learned he had cashed the check and deposited it into his personal bank account. Nationwide then paid the homeowner the portion of the claim settlement Wood is accused of taking. 

Wood is due in court on May 4^th, where, if convicted, he could face up to seven years in prison.  Please note that these are merely accusations made against the defendant.  All defendants are presumed innocent until proven guilty in a court of law.