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For Immediate Release:  
For Further Information Contact:
March 28, 2005

Office of The Attorney General
- Peter C. Harvey, Attorney General
Division of Criminal Justice
- Vaughn L. McKoy, Director
Office of the Insurance Fraud Prosecutor
- Greta Gooden Brown, Insurance Fraud Prosecutor


Rachel Sacharow


Burlington County Woman Ordered to Pay Insurance Fraud Fine for Submitting $42,000 in Fake Insurance Claim

TRENTON - Division of Criminal Justice Director Vaughn L. McKoy announced that a Burlington County woman was ordered to pay a $5,000 fine after pleading guilty to falsifying records in order to submit a phony insurance claim worth more than $42,000.

According to Director McKoy and Insurance Fraud Prosecutor Greta Gooden-Brown, Linda Hayes, 58, Austin Road, Marlton, Burlington County, was ordered by Burlington County Superior Court Judge Marvin E. Schlosser to pay a $5,000 civil insurance fraud fine and to serve three years probation. Hayes had previously pleaded guilty to a criminal Accusation filed by the Division of Criminal Justice - Office of Insurance Fraud Prosecutor which charged her with two counts of falsifying records.

At the Jan. 21 guilty plea, Hayes admitted that during October 2002, she submitted more than $42,000 in falsified receipts to USAA Casualty Insurance in support of a fraudulent homeowner’s insurance claim. The claim, which resulted from a burglary of the residence, stated that certain of Hayes’ property had been stolen and that Hayes inflated the receipts and reported to USAA Casualty Insurance that the alleged stolen property was more valuable that it actually was. In addition, it was charged that Hayes submitted receipts to USAA Casualty which were entirely fictitious and that she also submitted a fraudulent police report to the Evesham Township Police Department.

State Investigator Matthew Armstrong, Civil Investigator Bert Sowney, and Supervising Deputy Attorney General Lewis J. Korngut were assigned to the investigation. SDAG Korngut represented the Division of Criminal Justice - Office of Insurance Fraud Prosecutor at the sentencing. The investigation was referred to the Office of Insurance Fraud Prosecutor by USAA Casualty after Hayes’ claim was denied.

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