DOI News

For Immediate Release: Contact:
May 15, 2009 Kristin Milam
Johanna Royo
919-807-6011
 
Chicken Farmer Arrested on Charges of Lying About Insurance Claims
Claims for Unusual Farm Equipment Raised Suspicions
 
RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Stanley J. Davis, Jr., 40, 367 Joe Brown Road, Woodland, on two counts of obtaining property by false pretenses, two counts of insurance fraud and one count of attempting to obtain property by false pretenses.
 
According to the investigation, in September 2006, Davis, who owns two chicken farms, claimed to Farm Bureau Insurance that lightening struck a poultry house fan causing it to stop and about one-third of his chickens to suffocate. According to the arrest warrant, Davis was paid $2,700 for lost income by Farm Bureau. But investigators allege, a power outage actually caused the fan to go out and Davis' policy did not cover that.
 
Then in November 2008, according to the warrant, Davis claimed a poultry "pooper scooper" was stolen from his farm and Farm Bureau paid $12,300 for the loss of the equipment. Investigators allege, the equipment never actually belonged to Davis and its rightful owner picked it up from his farm.
 
And in December 2008, Davis claimed eight fans were stolen from his chicken farm. According to the investigation, Davis could not produce receipts for the equipment and Farm Bureau did not pay the claim. Davis was processed at the Northampton County Sheriff's Office. He was released on a $5,000 secured bond.
 
The Department of Insurance employs 20 sworn law enforcement officers dedicated to investigating claims of insurance fraud. In 2008, these investigators saw more than 453 cases successfully closed with more than $5.8 million in restitution and recoveries, 60 criminal convictions and 130 arrests.
 
An estimated 10 cents of every dollar paid in premiums goes toward the payment of fraudulent claims. To report suspected fraud, contact the Department of Insurance Investigations Division at (919) 807-6840. Callers may remain anonymous. Information is also available at the NC-DOI Web site.
 
-- NCDOI --