Top insurance fraud swindlers
Class of 2004
Rev. Gerald Rayborn 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.
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. According to sources, 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.
Isabel Parker was a stout 72-year-old granny, 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.
Judge Don McAuliffe standing 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 be too expensive to repair. McAuliffe quickly increased the coverage on the home by $200,000 in order to payout 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.
James Lee Graff robbed about 30,000 people of more than $40 million in stolen premiums and medical bills they had to pay from their own pockets. To sound legitimate, Graff hijacked the name of a real insurer, Employers Mutual. He promised premiums up to 50 percent below market, and easy signup — even for sick people. Graff had policyholders join fake unions or associations. Hundreds of thousands of small businesses have lost at least $150 million to similar cons over the last three years. A federal court finally ordered Graff to repay his victims last year.
John Veysey torched up to four houses, and killed his first wife Patricia for life insurance money. Veysey’s second wife Deserie and their son John nearly died in one flaming home. He drugged Deserie so she’d pass out, but firefighters saved her. Investigators believe Veysey was ready to murder his third wife Callie after taking out a life policy on her just before he was busted. Veysey has 110 years to learn new job skills in prison.
Martin Frankel rogue financier and S&M playboy secretly took over seven small insurance companies and stole more than $200 million from them while thousands of policyholders lost their coverage.
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