Raleigh, N.C. — A former Raleigh insurance agent was arrested Monday on charges that she allegedly pocketed money from false workers' compensation policies.
Mary Grantham Hicks, also known as Mary Linda Hicks, owner of Swift Creek Insurance and Realty, 7985 Fayetteville Road, was charged with one count of embezzlement and one count of obtaining property under false pretenses. Further charges are pending.
Chrissy Pearson, a spokeswoman for the North Carolina Department of Insurance, said Hicks falsified certificates of workers' compensation insurance to area commercial contracting groups.
"Basically, we believe that some construction companies came in to purchase workers' compensation insurance," Pearson said. "She took their money, told them they had insurance, but in reality, she pocketed the money, and they don't have insurance."
In at least one case, Hicks allegedly took payment from a client but failed to remit that payment to the insurance company, Pearson said.
That company notified the Department of Insurance after two employees were injured and were not covered.
Hicks, 58, of 7608 Blaney Franks Road, surrendered her insurance license to the Insurance Commission last year, but continued to own and operate the agency and employed at least one other licensed agent, Pearson said.
Investigators believe she continued to sell the policies to local commercial construction contractors and subcontractors. They also allege that she conspired with subcontractors to provide false documents to general contractors in order for the subcontractors to secure jobs.
Department examiners began an audit of the agency immediately after a search Monday by investigators.
Clients can call 800-546-5664 to check the validity and coverage of their insurance policies.
Former Raleigh insurance agent charged with fraud
- Reporter: Stacey Cameron
- Photographer: Chad Flowers
- Web Editor: Kelly Gardner
RELATED TOPICS: Swift Creek, Raleigh, Fayetteville
Copyright 2011 by Capitol Broadcasting Company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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True, you can post $85,000 in securities instead of buying liability insurance. However, you deal with the Commissioner of Motor Vehicles and not the Commissioner of Insurance. Also, if you can post that much, you really should go ahead and buy insurance that will protect you for a lot more, especially if you are unlucky enough to be hit by someone who has no insurance or less than you do. $85,000 isn't going to help you much if you really goof up on the road. And I'mot an agent or a company person!
August 6, 2008 2:37 p.m.
we had a case like this with another agency...seems we still had to pay the claim though we never issued a policy or received money.
August 6, 2008 1:05 p.m.
August 6, 2008 12:23 p.m.
The state requires that you carry Liability Coverage Insurance on your vehicle to protect other drivers against at-fault accidents that you may cause. It is intended to indemnify the not-at-fault party for bodily injury and property damage incurred during an accident. It is neccessary and is used all the time. I am blogging from a local Allstate agent's office with a drive in claims adjuster, I would know. Millions of dollars are paid in claims daily. Question. If there were no auto insurance requirements, what would you recommend for when a party causes $10,000 in medical bills and 10,000 dollars in property damage to another not-at fault party. How would you suggest this person get the money that they need and deserve?
August 6, 2008 12:12 p.m.
August 6, 2008 10:48 a.m.