For Immediate Release: May 1, 2012

Stanly County Man Accused of Insurance Fraud, Filing False Police Report

RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Franklin Baxter Vaughn, 52, of 30654-C Tom Road, Albemarle; he is charged with one count each of insurance fraud and filing a false police report.

Department of Insurance criminal investigators allege that on Feb. 20, 2012, Vaughn reported to the Stanly County Sheriff’s Office that $6,848 worth of items had been taken from his home during a burglary. A Stanly County Sheriff’s Office detective later interviewed Vaughn and found several items that were reported stolen still in the home. When confronted, Vaughn admitted to adding $4,947 worth of items to the report so that he could benefit from his insurance policy with N.C. Grange Mutual Insurance Company. The detective notified the Department of Insurance and N.C. Grange representatives, who rejected the insurance claim.

Vaughn was arrested on April 27 after turning himself in to authorities at the Stanly County Sheriff’s Office. He was placed under a $5,000 secured bond and is scheduled to be in court on June 4.

The Department of Insurance employs 20 sworn state law enforcement officers dedicated to investigating and prosecuting claims of insurance and bail bonding fraud. Since Insurance Commissioner Wayne Goodwin took office in 2009, criminal investigators have received more than 14,000 complaints, resulting in 602 arrests, 333 criminal convictions and more than 110 pending court cases. These efforts have delivered more than $48.5 million in restitution and recoveries for victims.

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--