Seven Arrested for Louisiana Insurance Fraud

Louisiana State Police detectives, who were assisted by the Iberia Parish Sheriff’s Office and the United States Marshal’s Violent Offender Task Force arrested seven people, and are still looking for one more. The arrests, for wire fraud and conspiracy, are the result of a federal indictment that was handed down by a grand jury.

According to KLFY News, it was due to a complaint from the Louisiana Department of Insurance, which contained allegations that people were staging vehicle crashes, that a year-long investigation came about. The staged crashes reportedly took place from 2003 until 2010, leading to all of the suspects filing claims with insurance companies in an attempt to gain money from fraudulent property and injury claims.

The investigation revealed that the group targeted unsuspecting operators of large commercial motor vehicles. In one incident, the group intentionally crashed into a commercial truck carrying hazardous material. The majority of the staged crashes occurred on the multilane portions of US Highway 90 in Lafayette Parish. Investigators discovered that the suspects obtained in excess of $400,000.00 in proceeds from these crashes.

Based on the evidence that the detectives obtained during the course of their investigation, the Assistant United States Attorney for the Western District of Louisiana assembled a grand jury. On May 12^th, the grand jury handed down indictments for all of the individuals involved.

On the morning of May 24^th, the following individuals were arrested based on the indictments:

Oliver B. Lockett from Lafayette, for one count of conspiracy to commit an offense or defraud the United States and 4 counts of wire Fraud; Warren Lockett from Jeanerette, LA, for one count of conspiracy to commit an offense or defraud the United States; and Kenneth Randall from Carencro, LA, for one count of conspiracy to commit an offense or defraud the United States. Also arrested were Lydia residents Buddy Estelle, Shantelle Estelle, Amy Estelle, and Joseph Owens Jr. for one count of conspiracy to commit an offense or defraud the United States.

All of the individuals were taken to the federal courthouse in Lafayette to appear before the magistrate on the charges, except for Oliver Lockett, who was arrested by the United States Marshal’s Office in Williston, ND.

Detectives and US Marshal’s are still currently searching for Wardell Lockett, also from Lydia. He would also be charged one count of conspiracy to commit an offense or defraud the United States.

If convicted under the wire fraud statute, the suspects could be imprisoned for up to 20 years. If convicted under the conspiracy to commit wire fraud statute, the suspect could be imprisoned for up to 5 years.