(Washington, DC) The District of Columbia Department of Insurance, Securities and Banking (DISB) joined the Washington, DC, US Attorney’s Office and the US Secret Service in announcing the indictment of a former legal staff coordinator from CareFirst, Inc., on seven counts of wire fraud and one count of “causing an act to be done.”

Neville Reid of Olney, MD, was arraigned in District court on August 10, where he pled not guilty to the charges. His next hearing is set for August 29. According to the indictment, Reid allegedly devised a scheme to funnel money from CareFirst through IncSpot, LLC, a Maryland limited liability company he created. From 2001 to 2003, Reid presented IncSpot’s documents as a business that could perform filing services of legal documents and notices with various government entities to his supervisors at Carefirst, without disclosing that he was the founder of the company. As a legal staff coordinator, Reid’s duties included processing bills from outside vendors who file paperwork with state authorities on behalf of CareFirst, a nonprofit that provides health care services. Because of the fraud, Reid received at least seven checks to IncSpot for services that were never done.

DISB’s Senior Fraud Investigator Carl J. Ditchey worked closely with Secret Service Special Agent Dai Tran and John Griffith of the US Attorney’s Office in bringing this case up for indictment.

“DISB is proud of the work of its special investigators in capturing those who believe they can get away with defrauding agencies or consumers,” said DISB Commissioner Thomas E. Hampton. “DISB continues to be vigilant in protecting the residents and businesses in the District of Columbia.” A wire fraud conviction carries up to 20 years imprisonment.