1 Arrested in North Carolina Insurance Fraud Scheme, 1 Awaits Indictment

North Carolina officials arrested two suspects on an alleged insurance fraud scheme, according to Insurance Commissioner Jim Long.

John Wesley Baum, 30, is behind an insurance fraud scheme in which he helped his alleged associate file a false police report and collect $4,000 from a false insurance claim, Long said.

Baum was arrested Monday and charged with one count of felony conspiracy to obtain property by false pretense, Long said. Baum was processed at the Pasquotank Sheriff’s Office and released on a written promise to appear.

Baum’s alleged accomplice, Jose Martin Reta, 41, of Elizabeth City, N.C., is awaiting indictment on charges of obtaining property by false pretense, Long reported.

Investigators allege that Reta claimed his Kywco scooter was stolen last November, but say that in reality he gave the vehicle to Baum, Long said. The scooter was later discovered by an officer checking registrations, Long said.

Source: North Carolina Department of Insurance