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AG arrests California man for insurance fraud scheme in Louisiana

AG arrests California man for insurance fraud scheme in Louisiana
Louisiana Attorney General's Office
CrimeTracker
Monday, August 18, 2014 - 1:33pm

A Los Angeles, California man was arrested in New Orleans on Friday for selling fraudulent Workers Compensation and Employers Liability insurance policies throughout the state of Louisiana, announced Attorney General Buddy Caldwell.

 

50-year-old Terry Francis Savoy is charged with five counts of theft by means of fraudulent conduct, four counts of forgery, seven counts of forgery of certificates of insurance, and six counts of illegal transmission of monetary funds.

The arrest comes as a result of a joint investigation involving the Attorney General’s Investigations Division, Orleans Parish District Attorney’s Office, Houma Police Department, Los Angeles County Sheriff’s Department Fraud and Cyber Crimes Bureau, and CNA Insurance Security Fraud Division.

 

Savoy, operating under the business known as NTRUST Financial, would contract with small health care provider businesses to handle these companies’ payroll. After traveling to Louisiana and establishing contact with potential victims, Savoy would sell fraudulent insurance policies to these companies.

He would then have the victims wire money to California in order to purchase the fraudulent policies. After receiving payment, Savoy would not provide any original insurance documents or monthly premiums. Instead, he provided the victims only a fraudulent fact sheet of the policy and a fraudulent bank letter of credit. Thousands of dollars were stolen as a result of this scam.

 

Savoy was initially apprehended in Los Angeles on May 2 and was extradited back to New Orleans on Friday. He was then arrested on outstanding warrants for violations that occurred in the parishes of Orleans, Terrebonne, Ouachita, and Bossier. Savoy was booked in the Orleans Parish Prison.

 

The Attorney General’s office is continuing to identify other potential victims. Anyone who purchased a Workers Compensation and Employers Liability insurance policy from Savoy and did not receive the actual policy or premiums is asked to call (225) 326-6100 or (504) 471-2863.

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