For Immediate Release: June 24, 2010

Contacts: Kristin Milam or Kerry Hall: 919-807-6011

Fayetteville Woman Accused of Insurance Fraud

RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Lori Bunce Herring, 46, of 1815 Stockton Dr., Fayetteville; she was charged with one count each of insurance fraud and obtaining property by false pretense.

Department investigators allege that between October 2004 and February 2010, Herring fraudulently claimed $77,155 in disability benefits from the Unum Insurance Group, when she was already receiving disability benefits through the Social Security Administration/Railroad Retirement Board.

Herring turned herself into authorities at the Cumberland County Detention Center and was released on a $25,000 unsecured bond. She is scheduled to appear in court June 25.

The Department of Insurance employs 20 sworn law enforcement officers dedicated to investigating claims of insurance fraud. To date in 2010, these criminal investigators have seen more than 152 cases successfully closed, with more than $3.5 million in restitution and recoveries, 32 criminal convictions and 56 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 Criminal Investigations Division at 919-807-6840. Callers may remain anonymous.

--NCDOI--