For Immediate Release: September 7, 2012

Insurance Agent Sentenced to Federal Prison on Insurance, Mail Fraud Charges

RALEIGH -- Insurance Commissioner Wayne Goodwin and Ripley Rand, United States Attorney for the Middle District of North Carolina, today announced that John A. Womack, Jr., 66, of High Point, was sentenced on Sept. 6 to 41 months of confinement in a federal prison and three years of supervised release after being convicted on charges of mail fraud and making false statements to an insurance examiner.

Womack was also ordered by United States District Court Judge Catherine Eagles in Greensboro to pay $557,718 in restitution to his victims, as well as a special assessment of $200.

After an investigation by the North Carolina Department of Insurance Criminal Investigations Division, its Agent Services Division and the U.S. Secret Service, Womack was indicted by a federal grand jury in Greensboro on May 2. On June 8, 2012, Womack pleaded guilty to 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. The case was prosecuted by Assistant United States Attorney Robert Hamilton.

Womack is scheduled to report to the United States Marshal on October 12, 2012, to begin serving his sentence.

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--