Attorney General Dave Sunday has announced the sentencing of the final defendant involved in a significant auto insurance scam in Cumberland County. The scheme, which deceived insurance companies into paying over $300,000 for fake accidents, has led to various legal consequences for the participants.
Lori Retus, 51, received a sentence of four years of probation with six months of house arrest. The group's leader, Kwa’rai Samuel, 25, was sentenced last month to a state prison term of 5 to 10 years. Another participant, Kevin Hartung, 46, is currently serving a 2-to-5-year prison sentence. All three have been ordered to pay $300,988 in restitution.
An extensive investigation by the Office of Attorney General, assisted by the 52nd Statewide Investigating Grand Jury, uncovered that the group used stolen identities and fake information to secure insurance policies. They then reported non-existent accidents to claim payouts.
Attorney General Sunday emphasized the broad impact of this fraud: “This was an elaborate scheme that targeted unsuspecting residents who had their identity stolen and defrauded insurance companies into lucrative payouts on claims,” he stated. He further noted that insurance fraud "leads to higher premiums for hard-working consumers."
The defendants, Samuel, Hartung, and Retus, pleaded guilty to charges that include corrupt organizations, insurance fraud, and theft by deception. Their fraudulent activities involved submitting 42 claims, with payouts received on 21 claims.
The prosecution team consists of Senior Deputy Attorney General Kristyne Crist and Deputy Attorney General April Lysaght from the Insurance Fraud Section.