Auto insurance fraud charged

Apr 12, 2005 : 5:35 pm ET



SILER CITY -- The Siler City Police Department filed 45 charges Monday against six Chatham and Randolph county residents suspected of participating in an auto insurance fraud ring.



Investigators at the N.C. Dept. of Insurance worked with the department, the Randolph County Sheriff's Office, U.S. Postal Inspector Service and the National Insurance Crime Bureau to shut down the alleged ring, which may have netted suspects up to $2 million.



Investigators suspect that an estimated 480 auto crash claims were deliberately caused so the defendants could collect insurance payments. More than 100 law enforcement officers participated in the raid Monday in which the defendants were picked up.



Those arrested include: Frankie Alston of 131 Ellington Road, Siler City; Gloria Alston of 1418 Spring Ave., Siler City; Ellen Burns of 4538 Walker Mill Road, Sophia; Reynaldo Dimas Colores of 401 N. Dogwood Ave., Apt. A, Siler City; Dorothy Maria Depaz of 1809 N. Chatham Ave., Siler City; and Jose Anton Depaz of 1110 Hal Clark Road, Siler City.



Each was charged with multiple counts of obtaining property by false pretenses and conspiracy to obtain property by false pretenses. Frankie Alston also was charged with being a habitual felon.



Investigators believe the fraud ring may have been part of a larger illegal drug operation. The investigation is continuing.



"This is one of the largest suspected fraud ring cases we've worked in a long time," said state Insurance Commissioner Jim Long. "Thanks to the National Insurance Crime Bureau, which alerted our officers to some suspicious trends coming out of Chatham and Randolph counties, we are now able to investigate this case fully and potentially take these individuals to trial."