Pair of Ga. Agents Arrested on Fraud Charges

Georgia Insurance Commissioner John Oxendine announced that investigations by his office resulted in the arrest of two agents in unrelated insurance fraud cases.

Milton Blount, 57, has been charged with two counts of insurance fraud. Blount arranged for premium financing for the Butler Street YMCA through Premium Financing Specialist Inc., of New York. But Blount allegedly kept the $75,463.60 in premium monies, instead of
forwarding the payment to the proper insurance company. The YMCA continued to make finance payments for insurance they never had.

Destiny Metropolitan Worship Church located in Marietta turned down Blount’s offer of coverage in August 2002, but he allegedly arranged for premium financing in the church’s name for more than $31,000, again through Premium Financing Specialist Inc. In each transaction,
Blount purportedly kept the money for his personal use. Blount’s agency, Interstate Insurance Agency Inc., is located at 4319 Covington Highway, Decatur.

Also arrested was Rory Callahan, 49, who is the owner of Abbey Insurance Agency of Stone Mountain, 703 Main Street (each Abbey Insurance Agency is independently owned and operated).

Callahan has been charged with two counts of insurance fraud for allegedly keeping premiums intended to pay for homeowners coverage. The insurance companies never received the premiums. In two instances homeowners did not discover that they did not have coverage until after their homes were damaged and they had attempted to file claims.

Oxendine urged consumers who may have dealt with either agent to contact the insurance company listed on their policy to be sure they have the coverage they paid for.