2004 Insurance Fraud

Hall of Shame

Rev. Gerald Rayborn, a pastor in South Memphis, torched his own church, so he could haul in nearly $800,000 in insurance money to loot for personal expenses. He wrote more than $100,000 in checks to himself over two years. Further fueling suspicions, Rayborn couldn’t explain why he kept $23,000 of church money in a briefcase. The federal jury finally convicted Rayborn after lengthy debates. He was scheduled for sentencing in November 2004. Read full story

Lyn Turner poisoned her husband Glenn Turner by slipping him antifreeze so she could collect on his life-insurance policy. He checked into the hospital, complaining of flu-like nausea, he was released and later died at home. Lyn had nagged him into getting $153,000 in life insurance, and was having an affair with firefighter Randy Thompson. Turner even ran off with Thompson on vacation shortly after her husband died. But then Thompson also died mysteriously with the same flu-like symptoms. Officials found antifreeze in his and Glenn’s bodies. Turner received life for killing Glenn, and is charged with poisoning Thompson. Read full story

Isabel Parker was a stout 72-year-old granny who made a long career of pretending to slip and fall in stores. Parker needed the insurance money to finance her gambling habit. She laid herself out on floors of department stores, supermarkets and liquor stores, and even on sidewalks outside of unsuspecting firms. Parker made 49 injury claims that soaked insurers for more than $500,000. Read full story

Judge Don McAuliffe stood trial for torching his lakeside home for $235,000 in insurance money. McAuliffe had hired handyman D.J. Faller to remodel his lakeside house and to torch his home because it was too expensive to repair. McAuliffe quickly increased the coverage on the home by $200,000 in order to pay off his mortgage, plus buy a new home and vehicle. McAuliffe negotiated a $235,000 payout from Grange Insurance before his arrest. McAuliffe will serve up to 20 years in federal prison when sentenced. Read full story

Emile Moreau was $50,000 behind on his mortgage, and owed another $200,000 to a bank for the Jamaica, N.Y. property where he lived. More money than he could afford, Moreau decided. So the best way out was to burn down the place and collect a pile of insurance money to pay off the debts. He convinced a buddy, Vincent Allen, to help out for a cut of the loot. They crept into the two-story building before sunrise, poured gasoline around and lit the dangerous mixture. Read full story

John Hyde ran a fake insurance plan that bilked at least 2,500 vulnerable people in 15 states of out of millions of dollars in stolen premiums and unpaid medical bills. Bobby Lee Horn was battling brain cancer when his health insurance plan refused to pay the little fellow’s $250,000-plus in bills for surgery and treatment in Houston back in 2000. The unpaid bills for his life-saving treatment had nothing to do with accounting glitches or computer errors — among the standard runarounds when bills aren’t being paid. The problem was simpler: The desperately ill 11-year-old’s health insurance was a fraud. Read full story

 



Read about previous year’s inductees to the Insurance Fraud Hall of Shame:

Current20152014201320122011201020092008200720062005200420032002