West Virginia Power Company Adjuster Charged in Bogus Surge Claims

March 2, 2012

Ten people have been charged in a scheme to obtain money through bogus power surge claims submitted to American Electric Power Inc.

U.S. Attorney Booth Goodwin announced the charges Thursday.

A federal information alleges former AEP claims adjuster Deborah Farmer of Winfield, W.V., arranged the scheme in which fraudulent damage claims were submitted to the Columbus, Ohio-based company.

Goodwin says AEP paid out nearly $600,000 to the defendants who weren’t entitled to the monies.

Four others also were charged in federal informations, which typically signal their cooperation with prosecutors.

Goodwin says five Charleston-area residents also have been indicted on charges of committing or conspiracy to commit mail or wire fraud.

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