The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-01-28
FRAUD CHARGED TO
INSURANCE MEN
Three Well Known Insurance
Agents Are Arrested
NEARLY 100000 Is LOST
Charge Is Made Against the Men That
They Insured Persons Who Soon
Died and Collected Money
for Themselves.
NEARLY 100000 IS LOST

Louisville, January 27.-What attorneys
employed by dozen or more life insur-
ance companies to conduct criminal pros
ecutions say is a scheme to defraud insur-
ance companies through the formation
of a widespread conspiracy in Louisville
is to be made the subject of thorough
investigation in this city. New Albany.
Ind, and perhaps other points.
Covering one point in the alleged con-
conspiracy warrants were sworn to late
this afternoon by s. C. Renick, secretary
and treasurer of the Indiana National In
surance company Of Indianapolis for the
arrest of John Keane. P. J. Needham and
T. T. O'Leary, three of the best-known
insurance solicitors In Louisville, on
charges Of conspiracy to defraud
1t is stated that the arrest of the three
men is but the first step in the investiga-
ton and that the fraud Families through
Louisville, has many connections in New
Albany and involves in one way or an
other more than 80 persons. and relates to
bogus or fraudulently obtained life in
snrance policies to the value of upward
of 100000.
1t is said that many physicians are in
yolved in the affair. One physician, it is
said, made confession and admitted that
he acted as a participant in a conspiracy
In insurance frauds by filing out medical
certificates certifying that men and wom-
en- he had never seen were In good health
and constituted good insurance risks.
Physicians Fooled.
In many cases, however, it Is believed
the physicians were imposed upon. They
were requested to examine man or wom-
an and did so, and made certificate as to
their sound health. Now it has deyel-
oped, so 1t is charged, that the persons
examined gave false names, thus imposing
upon the physicians, who certified to the
health OF aged. decrepit and half-witted
persons upon whom the conspirators ex-
pected to recover vast sums from the in
surance companies.
The matter was brought to light today
when State Insurance Commissioner Bell
and the local authorities took I'D the case
OF Walter e. Rider, teamster, receiving
salary of $40 per week. and who carried
policies aggregating $4,000, upon the re-
quest of several life insurance companies
In Indiana and Tennessee. Rider died on
January and his body was exhumed and
an autopsy held yesterday. The examina-
ton developed the presence of a lesion
In Riders lung, supposedly the result
or tuberculosis. Riders sister. however
made affidavit that she believed her
brother to be victim of foul play, and
upon this presentation and the request of
an official of q Tennessee insurance com
pany the city and state authorities took
the matter up.
Inc state figures In the matter in that
several companies which are excluded
from business by Kentucky have, 1t is
alleged, carried on a large business in
Kentucky risks by having the policies
written In New Albany, Ind, across the
Ohio river from Louisville.
Charges in Affidavit.
In the affidavit of s. C. Reniclz it is
charged that the defendants. John
keane. P. J. Needham and T. IT. OIesrv
IN Tho employ of said company and va
rious other insurance companies, among
others the Independent Life Insurance
company Of Indianapolis, Ind. the Com
monwealth Life Insurance COMPANY Of
kentucky, the Standard Life Insurance
company OF Des Moines, Ia, have been
guilty or the crime of conspiring to de-
fraud the said insurance companies and
the public generally; that the said de-
PENDANTS by conspiracy between them
selves and certain physicians in this city
ana New Albany, Ind, caused Applica-
lions for insurance to be presented with
tho certificate Of physicians, certifying
that they had examined said applicants.
where. in fact, there had been no exam
ination made by said physicians; that
they dictated to said physicians what
they said the company desired to know
as to the condition of health and his
tory of said applicant; that such .physi-
clan In numerous cases filed out and
signed such application, never having
seen the applicant; that they received In
each instance their commission in cash
upon said policies and in many instances
the alleged applicant died within the first
six months of the application and in all
OF such cases they were either decrepit
persons or sick and diseased at the time
of said application; that the said de-
PENDANTS caused to be issued upon the
life of Walter e. Rider, a teamster earn
ing not exceeding $40 per week, upon
alleged applications Of his, policies to the
extent of about $4,000; that said Rider
shortly after said policies were issued
died; that they caused insurance policies
to be issued upon the life of one Jacob
w. Cassel, upon false and fictitious ap-
plication and statements, to-wit: In the
Commercial Life Insurance company of
Indiana, in the sum Of 5000; in the In
dependent Life Insurance company of
Indianapolis $4,000; in the Indiana National
Life Insurance company 5000; that the
said Jacob w. Cassel is still alive and
never made any application for said in
surance; that policy was secured
through them ON one Anne Lyons for
$1,000 In the Indiana National Life In
surance company upon her life, whereas
she never applied for such policy; that
by reason Of the unla wful and criminal
acts of the defendants. a fraud has been
practiced by them upon the said COM
panies and upon the public by which
thousands of dollars were received BY
the said DEFENDANTS; extracted from VA
rious corporations and placed life insur.
ance policies upon the lives Of various
people fraudulently, aoggregating as stat
ed over 100000.
Investigator Is Sent.
Nashville, Tenn, January N.-Secretary
e. T. Hall Of the Independent Life Insur.
ance company of this city. stated thu