Louisiana Insurance Fraud Unit Nips Guaranty Fund Scam.

AuthorRogak, Lawrence N.

BATON ROUGE, La. -- It was a wholly inside job which probably had some possibility of growing into a scam.

As it turned out, the machination was quickly uncovered by an investigation of the Fraud Division of the Louisiana Department of Insurance. The scheme was to defraud the Louisiana Insurance Guaranty Association.

Anetta J. Wicher, 29, a resident of Baton Rouge and an employee who worked for the association as a temporary, was the alleged perpetrator and Nelda Jenkins, 38, of Donaldsonville, was her accomplice

As the Louisiana Insurance Department describes it, Wichers, a file clerk, allegedly made a false accounting entry which resulted in the issuance of a return premium check for 931.38. The payee was Jenkins, who, although not a claimant, endorsed the check and evidently attempted to negotiate it. Gail McDonald, director of the Fraud Division, who explained the scheme, did not say how it was uncovered.

The Louisiana department has a hot line for call-ins by members of the public who suspect an insurance fraud. State law protects such individuals from...

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