May 20, 2002

Investigation Stops Insurance Fraud Scheme
 

RICHMOND -- A three-year investigation by the Virginia State Police Insurance Fraud Division and other law enforcement agencies has stopped two Chesterfield County residents from bilking health insurance and automobile insurance companies.

On April 29, 2002, U.S. District Judge Robert E. Payne sentenced Millard Thomas to concurrent sentences of five years for mail fraud and 87 months for health care fraud, nine months above the normal range by federal sentencing guidelines. He also was ordered to pay restitution in the amount of $215,000 to victims of his fraud schemes. Thomas had pled guilty to both counts of fraud in December, 2001.

Thomas’ wife, Sharon Germain Thomas, pled guilty to mail fraud in November, 2001, but received a sentence of five years probation only, with no jail time, because of her cooperation with authorities. She was ordered to pay $82,118 in restitution.

Investigation revealed that since 1990 the Thomases reported accidents or injuries on 28 occasions to various insurance companies. The injuries were the result of single vehicle “phantom” crashes or slip and fall accidents.

In the “phantom” crashes Thomas or an accomplice would intentionally drive a vehicle off the roadway into a fixed object, usually a tree or brick wall. Thomas would then inform the responding police that the vehicle had been forced off the road by an oncoming vehicle. This would insure that the crash would be processed under the uninsured motorist provision of Thomas’ auto policy.

The Thomases sought extensive medical treatment for soft-tissue injuries. They visited one health care provider in excess of 300 times between 1990 and 1996. Numerous visits to other health care providers were also discovered. Millard Thomas used various aliases in an effort to hide his identity and the frequency of his activities.

A participant with Thomas in his scheme was identified, and developed as a cooperating witness. This witness gave details of how Thomas operated his scheme.

Sharon Thomas, who was employed by the U.S. Post Office, had health insurance with Trigon Blue Cross/Blue Shield. This enabled Thomas to seek health care treatment due to his "accidents." The bills would then be paid by Trigon. Thomas would continue treatment, such as physical therapy, until reaching the policy limits for medical payments. This amount is commonly $5,000.