Final Defendant Sentenced in Cumberland County-Based $300K Auto Insurance Scam
Attorney General Dave Sunday announced the sentencing of the third and final defendant charged in a Cumberland County-based auto insurance scheme that involved more than $300,000 in payouts for vehicle accidents that never happened.
A Cumberland County Judge sentenced 51-year-old Lori Retus to four years of probation, with the first six months to be served on house arrest.
The leader of the criminal organization — 25-year-old Kwa’rai Samuel — was sentenced last month to 5 to 10 years in state prison. Kevin Hartung, 46, is serving a 2-to-5-year prison sentence.
The sentencing judge also ordered that the trio pay $300,988 in restitution.
An Office of Attorney General investigation, which involved the 52nd Statewide Investigating Grand Jury, revealed that the group obtained insurance policies by stealing identities and using fictitious information, then reported accidents and vehicle damage to receive payouts.
"This was an elaborate scheme that targeted unsuspecting residents who had their identity stolen, and defrauded insurance companies into lucrative payouts on claims,” Attorney General Sunday said. “Insurance fraud causes wide-ranging damage, as it leads to higher premiums for hard-working consumers who rely on their vehicles to get to jobs, grocery stores, and medical appointments.”
Samuel, Hartung, and Retus each pleaded guilty to corrupt organizations, insurance fraud, theft by deception, and related offenses.
In all, the group submitted 42 fraudulent claims and received payouts on 21 of those claims, totaling more than $300,000.