Two Charged In Fraud Scheme Against Liberty Mutual Insurance

Copyright 2009 States News Service States News Service

February 12, 2009 Thursday

LENGTH: 310 words

HEADLINE: TWO CHARGED IN FRAUD SCHEME AGAINST LIBERTY MUTUAL INSURANCE

BYLINE: States News Service

DATELINE: PITTSBURGH, Pa.

The following information was released by the United States Attorney's Office for the Western District of Pennsylvania:

United States Attorney Mary Beth Buchanan announced today, February 12, 2009, that two Allegheny County men have been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of mail fraud in relation to the submission of insurance claims to the Liberty Mutual insurance company.

The two-count indictment named Ronald Burkarth, age 50, and Robert R. Korbe, age 39, as the defendants.

According to the indictment, in August of 2008, Korbe was insured by Liberty Mutual in a homeowner's insurance policy and a motorcycle insurance policy. The indictment further alleges that, on August 26, 2008, Korbe contacted local police and Liberty Mutual to report that a burglary had occurred at his residence while he and his family were away on vacation, and that his motorcycle and various other personal items had been stolen in the burglary. The indictment also alleges that the insurance claim was fraudulent, in that Korbe and Burkarth agreed that Burkarth would take the motorcycle from Korbe's residence while Korbe was away on vacation so that Korbe could report it stolen to Liberty Mutual after Korbe returned home. As a result of Korbe's insurance claim, Liberty Mutual paid Korbe approximately $29,000.

Assistant United States Attorney Shaun E. Sweeney, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both as to each count. The FBI and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.

An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

LOAD-DATE: February 13, 2009