DOI News

For Immediate Release: Contact:
August 24, 2009 Kristin Milam
Johanna Royo
Two Arrested on Charges of Insurance Fraud, Conspiracy
RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrests of Travis Lamond Draughn, 21, 500 Benson Dr., Tarboro and Noah Freeman, 55, 2518 Carry St., Norfolk, Va. on charges of insurance fraud, obtaining property by false pretense and felony conspiracy. According to the arrest warrants, Freeman and Draughn, who are father and son, received payments for false insurance claims totaling $4,688. The claims were paid by 21st Century Insurance Company. Freeman and Draughn were processed at the Edgecombe County Sheriff's Office and placed under $20,000 unsecured bonds.
Investigators allege in November 2008, that Freeman urged his son, Draughn, to file a claim for a phony hit and run accident using his car that had damage from a previous collision with a tree. Investigators also allege that in December 2008, Draughn filed another claim using the same damages as the first claim.
The Department of Insurance employs 20 sworn law enforcement officers dedicated to investigating claims of insurance fraud. So far in 2009, these criminal investigators have seen more than 174 cases successfully closed with more than $8.6 million in restitution and recoveries, 47 criminal convictions and 86 arrests and 75 cases pending in court.
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 --