A Raleigh man has been sentenced to multiple yr of jail time after pleading responsible to accusations of wire fraud and cash laundering. Other than jail time, Massey was additionally ordered to finish three years of supervised launch and to pay over $860,000 in restitution.

In line with federal prosecutors, Paul Richard Massey, 51 years of age and a resident of Shady Spring, admitted to issuing fraudulent funds as an insurance coverage claims adjuster and utilizing the cash to fund a powersports enterprise he owns.

Fraudulent transactions and actions admitted

Massey labored as a claims adjuster for Allstate Insurance coverage Firm between 2015 and June 2019, and through his employment was routinely assigned declare recordsdata to research when Allstate prospects filed claims underneath their insurance coverage insurance policies.

Allstate had offered Massey with the authority to research assigned claims in addition to decide protection and work with insured prospects and different stakeholders to resolve the disputed claims. Amongst different issues he was entrusted was issuing settlement verify funds to policyholders and companies.

The federal prosecutors mentioned Massey admitted to authorizing and issuing a verify on Dec. 26, 2018 amounting to greater than $15,000 on behalf of Allstate to a enterprise known as American Mitigation Providers LLC, often known as AMS Cleansing. The verify issued for AMS Cleansing was allegedly for work carried out and thus deposited into AMS Cleansing’s checking account. Massey admitted it was fraudulent as AMC Cleansing accomplished no work to justify the fee.

Massey additionally admitted that he had a enterprise relationship with AMS Cleansing and was a licensed signer on the enterprise’ checking account.

Among the many issues Massey admitted was authorizing and issuing 68 fraudulent declare fee checks on behalf of Allstate amounting as much as over $850,000 to AMS Cleansing between January 2018 and June 2019, federal prosecutors mentioned.

Massey had tried to cowl the fraudulent nature of a few of the checks by creating fraudulent receipts and paperwork. He additionally used the fraudulent claims funds deposited in AMS Cleansing’s checking account to fund Massey Powersports LLC, which he owned and operated.

The investigations revealed Massey routinely wrote checks from AMS Cleansing’s checking account to fund Massey Powersports, together with funds for workers and buying stock in addition to paying for recurring payments.

Massey additionally admitted that in December 2018, he wired greater than $100,000 from AMS Cleansing’s checking account to a North Carolina enterprise in a fraudulent transaction to prepay for tractors supposed for Massey Powersports, federal prosecutors mentioned.

In addition they Massey tried to hide his scheme from investigators by falsely stating that he had no monetary curiosity in AMS Cleansing. They mentioned he had additionally offered the FBI particular brokers with an in depth, false story about this fraudulent story.

In response to a federal grand jury subpoena, Massey created and submitted a fictitious $1 million contract to supposedly present AMS Cleansing was bought to a fictitious firm previous to his scheme.

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