Donegal Township man charged with insurance fraud

A Donegal Township man faces over a dozen charges related to insurance fraud and theft by deception after he submitted fraudulent claims to two insurance companies totaling over $30,000. The investigation, spearheaded by Special Agent Amy L. Adams of the Pennsylvania Office of Attorney General, stems from eight insurance claims filed by 45-year-old Walter Arden Smith Jr. of 401 Evans Lane, Donegal Township.

According to an affidavit of probable cause filed Friday, Jan. 31, beginning in October 2023, Smith filed several claims for scratches to his 2015 Nissan Rogue.

Smith on Oct. 29, 2023, filed an online claim with Allstate Insurance, claiming that his dog chased a stray cat around the vehicle, resulting in "scratches to the gas tank door, right rear quarter panel, rear bumper, lift gate above the license plate and window, the left rear door and quarter panel, and passenger side door," according to court papers. Smith submitted photographs in support of the insurance claim.

Allstate paid Smith $5,359 for the damages in addition to nearly $800 for rental vehicle reimbursement.

A month later, Smith again filed an insurance claim for damages due to alleged scratches from an animal. This time, Allstate paid Smith $553.

Roughly two months later in late January 2024, Smith filed an insurance claim yet again for alleged damages due to animal scratches.

Allstate paid Smith $5,457 for the damages, court records show, in addition to $528 for vehicle rental reimbursement.

Less than three weeks later, Smith on Feb. 17, 2024, filed another claim with Allstate due to alleged damages from animal scratches. The insurance company paid out $3,845 to Smith.

A subsequent insurance claim March 8, 2024, for the same issue netted Smith an additional $2,403 payout from Allstate.

Smith submitted a similar claim April 11, 2024, with Allstate, but four days later, he emailed the company stating he no longer wished to pursue the claim. The damage estimate for this claim, minus a $250 deductible, totaled $4,259.

Smith on May 21, 2024, filed another claim for the Nissan Rogue due to animal scratches. The damage estimate totaled $2,412, court papers show. At this point, Allstate's special investigations unit reviewed the claim after discovering similar past claims filed by Smith.

Investigators discovered that the photographs submitted by Smith for each insurance claim showed the same animal scratch damages.

Following an interview May 28, 2024, with Allstate's special investigations unit, Smith on June 3, 2024, sent an email to Allstate requesting to withdraw his latest claim.

In August 2024, Smith purchased a comprehensive and collision coverage automobile insurance policy with Root Insurance for his 2015 Nissan Rogue.

On Aug. 11, 2024, he submitted an insurance claim to Root, saying his "dog chased a stray cat around the car and damaged the car in the process," according to the criminal complaint. Five days later, Smith withdrew the claim.

On Sept. 17, 2024, Smith filed an insurance claim with Root after his dog reportedly "escaped the back porch and chased something," resulting in scratches to the vehicle. Smith on Oct. 2, 2024, withdrew the claim. A special investigator for Root later reported that the insurance company likely would have paid out approximately $5,500 for each fraudulent claim submitted by Smith.

In total, Allstate paid out $12,788 to Smith in insurance claims, with two claims totaling $6,672 withdrawn. The two withdrawn claims through Root Insurance totaled $11,000, for a grand total of over $30,000.

Adams later met with Smith at a Mount Pleasant Township location where the defendant "admitted that the majority of the claims filed for the animal scratches on his 2015 Nissan Rogue were not legitimate claims," according to the affidavit of probable cause.

While Smith was adamant that the initial insurance claim was legitimate, he "filed several claims with Allstate Insurance and Root Insurance for the same animal scratch damages."

After the initial damage was repaired, Smith "admitted that he needed money and filed multiple claims with Allstate and Root for damages from animal scratches that initially occurred during the incident in October 2023," court papers show.

Smith was arraigned 10:30 a.m. Friday, Jan. 31, in front of Magisterial District Court Judge Allison E. Thiel.

Smith faces eight counts of filing a fraudulent insurance claim, four counts of theft by deception and three counts of criminal attempt-theft by deception, all third-degree felonies, and one first-degree misdemeanor charge of theft by deception.

Smith is free on $25,000 unsecured bail, according to online court records.

He is scheduled for a preliminary hearing 10 a.m. Feb. 14 in front of Thiel.