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DISB Commended For Successful Conviction of District Resident for Fraud

Wednesday, November 17, 2010

DISB Commended For Successful Conviction of District Resident for Fraud

(Washington, DC) — Commissioner Gennet Purcell, Esq., of the DC Department of Insurance, Securities and Banking (DISB) and the US Attorney Ronald C. Machen Jr. recently announced that on Oct. 25, 2010, District of Columbia resident, Roscoe Grant Jr., was convicted by a jury of six felony counts arising from an insurance fraud scheme. Grant, 58, a former Ward 7 Advisory Neighborhood Commissioner, was convicted in US District Court for the District of Columbia of two counts of conspiracy, two counts of mail fraud, aggravated identity theft and insurance fraud.

He will be sentenced Feb. 1, 2011, by Judge Ricardo M. Urbina, who presided over the trial. He faces a maximum sentence of up to 20 years imprisonment on the lead charge, and a two-year mandatory sentence for the aggravated identity theft charge. He was ordered to be detained pending sentencing.

“DISB is very pleased with the outcome of this trial,” said Commissioner Purcell. “It shows that DISB staff will work long and hard, taking all available steps to protect its residents against financial fraud, and the perpetrators of such fraud. I would really like to commend the DISB team that worked tirelessly on this case.”

The evidence at the trial established that between December 2004 and February 2006, Grant conspired with others to defraud Transamerica Life Insurance Company. He obtained a false life insurance policy in the name of his brother, who was seriously ill, listing himself as the sole beneficiary. The defendant made false representations to Transamerica about his brother’s employment status and his ability to work, and also forged his signature on an insurance form. Grant’s brother died from his illness in July 2005.

After his death, Grant helped generate false documents to convince Transamerica that the deceased had worked for a company with a Transamerica group life insurance policy, and was thereby eligible for insurance. Transamerica paid the defendant more than $33,000 in benefits.

In announcing the verdict, US Attorney Machen commended the efforts of the FBI special agent who worked on the case, as well as Special Agent Anne Thomas of the US Department of Labor, Office of the Inspector General’s Office of Labor Racketeering & Fraud Investigations, and Senior Fraud Investigator Carl Ditchey in DISB’s Enforcement and Consumer Protection Bureau for their investigation of the charges. 

Ditchey commended DISB Fraud Compliance Manager Betty Bates who offered much assistance in the investigation. The fraud scheme was initially discovered from within a separate fraud investigation, which was conducted by DISB Insurance Operations Specialist Colin B. Johnson Sr. in the Insurance Bureau.    

US Attorney Machen also commended the staff of the US Attorney’s Office, including Paralegal Specialists Mary Treanor, Tasha Harris and Maggie McCabe, and Assistant US Attorney Jonathan Haray, who prosecuted the case.