Court Upholds Man’s 37-Month SentenceInsurance Fraud — By Trace America on June 1, 2012 at 3:27 PM
A Mississippi couple, Robert Rainey, 31, and his wife Elizabeth, 30, were sentenced earlier this year on charges that came out of a scam involving insurance checks totaling over $700,000.
Mrs. Rainey was sentenced to four years in prison, while her husband got barely over three years, which he argues is too harsh and will not be a deterrent to other white-collar criminals.
I would assume that a harsh punishment is the deterrent though.
According to CorrectionsOne.com, Robert also argued at his appeal that the judge unfairly ordered him to give up his cable TV during the three-year period of supervision that follows his release from prison.
The Rainey’s were among several people convicted in the case in which they took $744,192 from Tennessee’s Direct General Insurance Corp.
Elizabeth Rainey was a claims adjustor for the company.
She and another employee, Shana McBride, admitted to writing bogus checks and siphoning money for friends and relatives, stating that the claims were for legitimate customers.
Rainey’s husband received 224 of the checks.
They admitted to siphoning money from her employer, Direct General Insurance Corp. of Memphis, by creating fraudulent checks on insurance claims. Prosecutors say Elizabeth Rainey was a claims adjustor at Direct General whose job was to issue claims checks for legitimate claims.
Robert, who is imprisoned at the Federal Correctional Institution, argued that there is no evidence that supports the idea that the length of sentencing has to be tied to the amount of loss caused by the fraud.
However, according to the Insurance Journal, a three-judge panel of the 6th U.S. Circuit Court of Appeals upheld U.S. District Judge Jon McCalla’s ruling. They noted that the judge also took into consideration the repetitive nature of the theft, the protection of the public and the need for vocational training.
McCalla then added another condition for Rainey to follow upon release from prison. At the sentencing hearing he stated, “I’m going to require that you do a few things, like cancel cable TV. The whole United States and your neighbor and every other taxpayer and every other premium payer can’t understand why you have got cable TV.”
The appeals court ruled that as an issue Rainey can challenge later however.
This post is authored by Trace America.