Ohio resident sentenced to three years in prison for insurance fraud

Ohio Department of Insurance director Judith L. French recently announced that Joshua Preston, of Franklin Furnace, Ohio, was sentenced in the Scioto County Court of Common Pleas to three years in prison after previously being convicted of felony insurance fraud, felony attempted insurance fraud, and felony forgery. Charges for felony telecommunications fraud, felony aggravated theft, felony attempted grand theft, and felony identity fraud were dropped as part of a guilty plea agreement.

A department investigation showed

Preston filed forged and fraudulent documents to obtain an equine mortality insurance policy with General Security National Insurance to insure a horse for $150,000. Preston subsequently filed a fraudulent death claim with the insurance company and received $150,000 in insurance proceeds.

Preston also stole the identity of an associate and fraudulently obtained a $215,000 equine mortality insurance policy with Great American Insurance to insure three horses. Preston filed a fraudulent death claim on one of the horses with the insurance company and attempted to receive $95,000 in proceeds.

“I appreciate the hard work of the investigative team and prosecutor for ensuring that justice was served and for sending the message that insurance fraud is a serious crime,” French said. “Insurance fraud is not a victimless crime. It increases the cost of insurance for all Ohioans and fighting it is a major priority at the Ohio Department of Insurance.”

The Coalition Against Insurance Fraud estimates that the economic impact of insurance fraud, which also drives up the price of insurance, is a $308.6 billion annual cost to U.S. consumers and businesses. It is believed that amount equals about $932 annually for every American or more than $70,000 over a person’s lifetime.

Ohioans who suspect insurance fraud or insurance professional misconduct can report it to the Ohio Department of Insurance at 800-6861527 or insurance. ohio.gov. Referrals can be made anonymously, and the law protects those who report fraud from civil liability in the absence of fraud or bad faith.