For Immediate Release
September 16, 2011
Catherine L. Bernhard, Senior Assistant Attorney General
Insurance Fraud Unit Prosecutor
Consumer Protection and Anti Trust Bureau
(603) 271-2898 or (603) 271-7973 Ext. 235
Attorney General Michael A. Delaney and Insurance Commissioner Roger A. Sevigny announce the conviction of Jason Reed of Sutton, MA for the crime of insurance fraud. On September 15, 2011, a hearing was held at Merrimack County Superior Court in Concord, NH at which Mr. Reed pleaded guilty to one Class B felony of insurance fraud against Concord Group General Mutual Insurance Company ("Concord Group"). Mr. Reed was sentenced to a conditional discharge of three years. As part of the sentence Mr. Reed was required to pay restitution to Concord Group for the investigation of the false claim, and to complete 100 hours of community service.
On August 3, 2010, Mr. Reed made a false claim to his insurance carrier, Concord Group, for damage to the driver's side of his F 150 truck. On that date, he reported that on July 31, 2010, while driving in Boston, MA he struck a guard rail. Mr. Reed told the claims representative that the driver's side of the truck was damaged but that no other vehicle or property damage was involved in the accident. Concord Group initiated a claim under Mr. Reed's policy. While the claim was being investigated, Concord Group received a tip that Mr. Reed's truck was not damaged as Mr. Reed had claimed, but was purchased "as is" with the damage to the driver's side of the truck. Concord Group obtained photographs of the damage to the truck. Shortly after the investigation of the claim began, Mr. Reed withdrew his claim for insurance coverage. As required by law, Concord Group referred the matter to the NH Insurance Department Insurance Fraud Unit as a suspicious insurance claim.
NH Insurance Department investigators spoke with several witnesses, and verified that the damage Mr. Reed reported to Concord Group on August 3, 2011 was sustained on June 18, 2010, before Mr. Reed purchased the truck from Twin State Motors. Mr. Reed was interviewed by investigators and confronted with the photographs of the damage and the statements made by other witnesses. He subsequently admitted that the truck was not damaged in the way he had reported to Concord Group and was damaged when he purchased it. He said he made the claim in order to have his insurance company pay for the repairs to the truck.
The prosecution is the result of collaboration between the Attorney General's Office and the NH Insurance Department Fraud Unit. The Fraud Unit was formed under RSA 417 to investigate and prosecute Insurance Fraud and other insurance-related criminal activity with the assistance of the NH Department of Justice.
New Hampshire Department of Justice | 33 Capitol Street | Concord, NH | 03301