North Carolina Siblings Charged with Auto Insurance Fraud

A brother and sister have been arrested by North Carolina officials on charges of insurance fraud.

State Insurance Commissioner Wayne Goodwin reported the arrest of Wanda Nichols Covington, 36, and her brother; Thomas Nichols Jr., 32, both of Lewiston Woodville. According to the arrest warrant, Covington is accused of filing false paperwork in May 2009 with Progressive Insurance Co., claiming her car had been stolen from her home. Covington received $11,259.35 for her 2007 Hyundai Sonata.

Law enforcement officials said they found the car, partially burned, in the nearby town of Aulander. Investigators allege Covington hired her brother to dispose of her car. He is charged with obtaining property by false pretense, insurance fraud and felony conspiracy. Covington is charged with felony obtaining property by false pretense, insurance fraud and felony conspiracy.

Both were placed under $10,000 unsecured bonds at the Bertie County Sheriff’s Department, according to officials.

Source: North Carolina Department of Insurance