For Immediate Release: November 4, 2010

Cary Subcontractor Accused of Insurance Fraud

RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Richard David Stone, 44, of 110 Bancroft Brook Drive, Cary; he is charged with one count of obtaining property by false pretenses with a value of more than $100,000.

Department of Insurance criminal investigators accuse Stone of submitting a fraudulent Certificate of Insurance to O.L. Thompson Construction Company in order to obtain employment as a subcontractor. They allege Stone was not entitled to $113,832 he was paid by the company between February and April 2010, because he did not have the insurance coverage required for him to be legally employed.

Stone was arrested in Wake County on Nov. 4 and placed under a $25,000 secured bond.

The Department of Insurance employs 20 sworn law enforcement officers dedicated to investigating claims of insurance fraud. So far in 2010, these criminal investigators have seen more than 268 cases successfully closed with more than $18.5 million in restitution and recoveries, 54 criminal convictions and 89 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. Information is also available at www.ncdoi.com.

--NCDOI--