TEXAS MAN SENTENCED TO EIGHT YEARS IN FEDERAL PRISON FOR ROLE IN INSURANCE FRAUD SCHEME
Mesquite, Texas Residents Who are Co-Defendants in Scheme Await Sentencing
DALLAS — At a sentencing hearing that concluded late yesterday afternoon, Flynn Patrick Singleton, 46, was sentenced by U.S. District Judge Sam A. Lindsay to eight years in federal prison for his role in an insurance fraud scheme, announced U.S. Attorney James T. Jacks of the Northern District of Texas. Singleton, formerly a resident of Dickinson, Texas, pleaded guilty in September 2010 to one count of mail fraud. He has been in custody since his arrest in Houston in February 2010.
Co-defendants in the case, Mesquite, Texas, residents George Brent Chivers and his wife, Sherrion Denise Mills Chivers, both 46, were each convicted at trial in January 2011 on one count of conspiracy to commit mail fraud and two counts of mail fraud. They face a maximum statutory sentence of 20 years in prison per count and a $750,000 fine. Sentencing is set for April 18, 2011, before Judge Lindsay.
According to documents filed in the case, the Chivers and Flynn Patrick Singleton devised a scheme to defraud Hartford Lloyds Insurance Company; Continental Casualty Company/CNA; and Maryland Casualty Company/Zurich American Insurance Company of approximately $432,000, spanning from 2004 to 2006. Late last year, co-defendant Ernestine Singleton-Davis, the mother of Flynn Singleton, pleaded guilty to one count of making a false statement related to her role in the scheme. She is scheduled to be sentenced on April 4, 2011, by Judge Lindsay.
As part of the scheme, the defendants leased office space for multiple businesses that they purportedly owned, obtained commercial insurance policies insuring the locations, and then falsely reported to local police departments that their vehicles had been car-jacked or burglarized while moving office equipment from one location to another. They then submitted fraudulent claims to the insurance companies seeking reimbursement for telemarketing computer equipment, also known as “autodialers,” that supposedly had been in their vehicles at the time of the robberies or burglaries.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Katherine Miller and Stephen Fahey prosecuted the case.
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