HARRISBURG, PA — Lori Retus, 51, has been sentenced to four years of probation, including six months of house arrest, for her role in an elaborate auto insurance fraud scheme based in Cumberland County. The sentence was handed down by a Cumberland County Judge on April 22, marking the conclusion of a case that defrauded insurance companies of over $300,000.
Retus is the final defendant to be sentenced in the operation, which involved submitting false claims for vehicle accidents that never occurred. Her co-conspirators, 25-year-old Kwa’rai Samuel and 46-year-old Kevin Hartung, received prison terms last month. Samuel, identified as the scheme’s leader, was sentenced to five to ten years in state prison, while Hartung is serving two to five years. All three defendants were ordered to collectively pay $300,988 in restitution.
The fraudulent operation, uncovered through an investigation by the Office of Attorney General and the 52nd Statewide Investigating Grand Jury, involved acquiring insurance policies using stolen identities and fictitious details. The group filed 42 false claims, successfully obtaining payouts on 21 of them.
“This was an elaborate scheme that targeted unsuspecting residents who had their identity stolen, and defrauded insurance companies into lucrative payouts on claims,” Attorney General Dave Sunday said. “Insurance fraud causes wide-ranging damage, as it leads to higher premiums for hard-working consumers who rely on their vehicles to get to jobs, grocery stores, and medical appointments.”
The defendants pleaded guilty to charges including corrupt organizations, insurance fraud, theft by deception, and related offenses. The case was prosecuted by Senior Deputy Attorney General Kristyne Crist and Deputy Attorney General April Lysaght of the Insurance Fraud Section.
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