North Carolina Insurance Commissioner Mike Causey today announced the arrest of Chad Jason Cady, 47, of 113 Pintail Lane, Rocky Mount, and Donna Scaff Cady, 50, of 730 Tyson Loop, Spring Hope. They were charged with insurance fraud and obtaining property by false pretense, both felonies.
The two are accused of obtaining $2,473.71 from State Farm Fire and Casualty Insurance Co. by filing a false claim for lost or stolen jewelry.
According to the arrest warrants, the two knew that the jewelry was not lost or stolen. The items were later pawned at American Jewelry and Pawn in Rocky Mount.
The offenses occurred between April 5, 2015, and May 1, 2015.
Special agents with the Department of Insurance’s Criminal Investigations Division arrested the two on Jan. 11. They were released on a written promise to appear in court.
“Insurance fraud hurts consumers; it costs North Carolina consumers nearly 20 cents on every dollar they pay in insurance premiums,” Commissioner Causey said. “That’s why I’ve more than doubled the number of special agents to crack down on fraud and other types of white-collar crime.”
Over the past three years, CID Special Agents recovered nearly $12 million used in fraudulent activities. That money has been returned to consumers and insurance companies. The restitution also helps preserve insurance rates.