West Virginia Offices of the Insurance Commissioner 2009 Annual ...

Training
In 2009, the Fraud Unit obtained specialized training for multiple employees from a variety of
sources:
a) Twenty-three investigators completed the NSC Defensive Driving Course 8.2
Edition
b) Forensic Accountant III completed Certification in Financial Forensics, as well as
Accredited Fraud Investigators Program and exam.
c) Forensic Computer Specialists completed 47 hours of annual training, as well as
Advanced SPADA/RAM Analysis and CFCE Coaching Program.
d) Applicable Research Analyst completed specialized training in Intelligence Analyst
Training Program IATP-902, as well CPT Code Training for Investigators.
e) Effective Investigation and Testimony was attended by several investigators.
In 2009 there were many cases involving a broad spectrum of criminal activity when it came to
investigations and prosecutions of insurance fraud. The following cases are offered as examples of the
types of cases the Fraud Unit were involved in for calendar year 2009:
2009 Case Highlights
Leonard H. Cline Jr, age 41 of Gilbert, WV, who owned and operated H & H Trucking, was indicted
by a Kanawha County Grand Jury on May 15, 2009 on forty-five (45) felony counts of workers
compensation fraud that included failure to file premium tax reports, failure to subscribe to workers
compensation, false testimony and statements to the then state run Workers Compensation
Commission. Mr. Cline, Jr., pleaded guilty to five (5) felony counts in exchange for the other forty (40)
counts being dismissed. On the five (5) counts in which Mr. Cline, Jr., plead guilty, the state had
determined it had paid out over $148,811 in workers compensation claims to date. In the
approximately ten (10) years during which Mr. Cline, Jr., operated his businesses he had defrauded the
workers compensation system of over $500,000 in unpaid premiums, penalties, and workers
compensation claims for benefits.
Jennifer Michelle Hamilton, age 25 of Roanoke, Virginia plead guilty to one (1) misdemeanor count
of insurance fraud on September 2, 2009 and agreed to repay restitution in excess of $19,000 to Omni
Insurance Company. Ms. Hamilton was indicted on June 2, 2009 on (1) one felony count of filing a
fraudulent claim to an insurance company. In exchange for her plea and agreeing to pay full restitution
the charge was reduced to a misdemeanor. Ms. Hamilton had reported she was changing a flat tire on
her Jeep Liberty and it rolled over a cliff in a remote area of the Monongahela National Forest on
February 29, 2008. It was later determined by the Offices of the Insurance Commissioner’s Fraud Unit
that Ms. Hamilton had been behind in her car payments and the story provided by the defendant did
not match the evidence found at the scene of the crash.
John M. Dignazo, age 57 of Martinsburg, plead guilty to a reduced misdemeanor charge of forgery
and uttering of a proof of insurance form which he presented to the Department of Motor Vehicles. On
January 31, 2005 Mr. Dignazio was operating a 1984 Toyota Corolla and was involved in a traffic
accident. As a result of the crash, Mr. Dignazio was issued a traffic citation for No Proof of Insurance.
On November 27, 2007 Mr. Dignazio faxed a false certificate of insurance for a 1984 Toyota Corolla
to the WV Department of Motor Vehicles. Mr. Dignazio was sentenced to six (6) months in the
regional jail, which was then suspended in lieu of one year probation, and a fine of $500.00.
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