Saginaw Residents Found Guilty on Conspiracy to Defraud Insurance Company
Carolyn Renee Moore, Leana B. McGee, and Tiara Michelle Baskin, all Saginaw area residents, were found guilty by a federal jury in U.S. District Court in Bay City, Michigan, yesterday on charges of conspiracy to defraud Progressive Insurance by use of the mail, United States Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Erick Martinez, Special Agent in Charge of the Internal Revenue Service, Detroit office.
The eight-day trial was conducted before United States District Judge Thomas L. Ludington. A fourth member of the conspiracy pleaded guilty before the trial and testified as a witness for the government.
The evidence presented at trial included information that McGee, Baskin and another member of the conspiracy collected over $60,000 in payments from Progressive Insurance for providing attendant care and household services to Moore. Moore had been injured in an auto accident on September 14, 2006. The payments from Progressive were for services the other members of the conspiracy claimed to have provided to Moore between September of 2006 and March of 2008. The evidence also showed that the individuals claiming to provide assistance to Moore were working at other jobs which made it impossible for them to provide all of the services for which Progressive paid them.
The defendants face a maximum term of imprisonment of 20 years and $250,000 fine. The penalty for Moore's tax offenses is 3 years imprisonment. Sentencing is scheduled for December 8, 2011. At that time, Carolyn Moore also will be sentenced on tax offenses to which she previously pled guilty before Judge Ludington.
The case was investigated by Internal Revenue Service Criminal Investigations. The prosecution was handled by the U.S. Attorney's Office in Bay City, Michigan.