A major bust in California resulted in the arrest of 17 suspects in connection with an alleged insurance fraud scheme that included a former claim adjuster.
According to California Department of Insurance investigators, Sheryl Bobbitt was hired approximately four years ago by Western United Insurance as a claim adjuster. The alleged scheme began when her boyfriend, Stanley Walker, solicited family and friends to act as payees for a number of accident claims. Those payees allegedly received $200 to $800 for cashing the checks issued by Bobbitt. They would then give the remainder of the settlement check to Walker, who would forward that to Bobbitt, according to investigators.
An audit conducted of Bobbitt's claim files allegedly revealed that she had fraudulently written 47 separate checks to 26 different individuals. When she was subsequently interviewed by Western United Insurance's SIU investigators, she reportedly admitted writing the fraudulent checks.
Both Bobbitt and Walker have been charged with 47 counts of insurance fraud and 47 counts of grand theft. If convicted of all offenses they could face up to 82 years in state prison and a fine of over $200,000.
The remaining suspects, if convicted, could receive a sentence of between five and nine years in state prison and a fine of $50,000.
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