Mississippi Insurance Firm Employee, Husband Plead Guilty to Scam

September 27, 2010

A Mississippi couple have pleaded guilty to federal wire and mail fraud charges stemming from a scam involving insurance checks totaling nearly $700,000.

The Commercial Appeal reported that Elizabeth and Robert Rainey of Southaven admitted to siphoning money from her employer, Direct General Insurance Corp. of Memphis, by creating fraudulent checks on insurance claims.

Prosecutors said Elizabeth Rainey was a claims adjustor at Direct General whose job was to issue claims checks for legitimate claims.

The Raineys entered guilty pleas last week and will be sentenced on Jan. 6 by U.S. District Judge Jon McCalla.

The Raineys remain free on their own recognizance.

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