SitNews - Stories in the News - Ketchikan, Alaska


Permanent fund fraud investigation reveals insurance theft
Alaska resident receives jail time and pays restitution


March 07, 2006
Last updated March 08, 2006

The State of Alaska's Division of Insurance and Permanent Fund Dividend Division conducted a joint investigation into the criminal activities of 38-year-old Anchorage resident June E. Freeman. Freeman was recently sentenced to jail time and was ordered to pay restitution for insurance theft and falsification of her Permanent Fund Dividend application.

Insurance Director Linda Hall said the prosecution of Freeman should be a deterrent for others thinking of perpetrating theft crimes. "When someone knowingly submits false information with the state or to an insurance agency to get more money than is owed, there are real consequences," said Hall. "We have the will and the way to prosecute these crimes that ultimately cost other Alaskans in higher premiums or a reduced share of the PFD."

Following a fraud tip, investigators at the Alaska Permanent Fund Division began an investigation on June Freeman in July of 2005. Investigators found that for three years, starting in 2003, Freeman had been forging her mother's signature on applications and collecting the checks. Ms. Freeman's mother had no knowledge of the fraud and had previously left the state.

During the investigation, information was obtained that Freeman had also forged doctors' signatures on disability claim forms that were remitted to American National Insurance Company. This information was given to Division of Insurance investigators.

The Division of Insurance investigation revealed that Freeman purchased a Dodge Neon from an Anchorage car dealer in September of 2002. At that time, she opted for disability insurance coverage available with American National Insurance Company. After making a couple of payments, Ms. Freeman remitted monthly disability claim forms bearing the purported signatures of Anchorage physicians and therapists. At the same time, she stated that she was unable to work because she was deemed 98% disabled.

The State of Alaska, Department of Labor records revealed that Freeman was employed during periods of time she claimed to have been disabled. Based upon the State of Alaska, Division of Insurance investigation, on October 5, 2005, the Office of Special Prosecutions and Appeals charged June Freeman in Anchorage District Court with thirty-seven felony counts that included Criminal or Fraudulent Insurance Acts, Scheme to Defraud, Theft in the Second Degree and thirty-three counts of Forgery in the Second Degree.

On February 17, 2006 in a plea agreement with the Office of Special Prosecutions & Appeals, Freeman pled to the charge of Theft in the Second Degree and was sentenced to 36 months in jail with 31 months suspended. Freeman was ordered to pay restitution of $12,556.74 to American National Insurance Company and placed on formal probation for five years. The sentence imposed was ordered concurrent with the sentence for conviction of Theft in the Third Degree and Unsworn Falsification in the Permanent Fund Dividend Division matter.



Source of News:

Alaska Department of Commerce

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Ketchikan, Alaska