For Immediate Release: May 4, 2012
Insurance Agent Indicted, Arrested on Federal Fraud Charges
RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of John A. Womack, Jr., 66, of 1100 North Rotary Drive, High Point; he is charged with four counts of mail fraud, two counts of making false statements to an insurance examiner, and five counts of making false entries into the accounts and books of an insurance business.
Department of Insurance criminal investigators allege that, while working as a licensed insurance agent under the business name Womack and Associates in High Point, Womack misled insurance clients into believing they were investing in Certificates of Deposit and annuities issued by several insurance companies. After an investigation by the North Carolina Department of Insurance Criminal Investigation Division, its Agent Services Division and the U.S. Secret Service, Womack was indicted by a federal grand jury in Greensboro on May 2. According to the indictment, insurance companies did not issue investments to his customers and Womack instead took the funds for personal use.
Womack was arrested on May 3 by North Carolina Department of Insurance investigators and U.S. Secret Service special agents. He was taken before a federal magistrate in Greensboro and released on a $10,000 unsecured bond.
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.