Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1921-07-15
Big Negro Insurance Fraud Is Uncovered I lere
LUMPKIN NEGRO !
DOCTOR MISSING;
WARRANT TAKEN
Sick Benefit Claims
Forged And Collect
ed, Is Charge

A warrant charging the making of
false sick insurance benefit claims
and collecting money thereon was
taken out Thursday in Lumpkin by
Attorney Hollis Fort, of Amer1cus,
representing the Georgia Mutufa In
surance company, of Augusta, ne
gro concern, against DR.. A. O, Lock
hart, a negro physician of Lumpkin,
and turned over to Sheriff johnson.
The sheriff still has the warrant, the
negro physician having disappeared,
and no trace of his present where
about having been discovered, ac-
cording to information.
The fraud is said by N. Duckett,
negro inspector for the company. who
was here, to have exceeded 81 900
and to involve more than 20 alleged
forged and fraudulent claims. That
the amounL involved Will be consid-
erably IN excess of the amount named
is the belief of those investigating
the case.
Involved with Dr. LQckhart is T.
!. Coleman. an Americus negro, who
has been district agent for thh in,
surance company, and who, f&%is said.
has turned states evidence and CIV
en- much information concerning the
transactions. According to the in-
formation, he and Dir. Lockhart di-
vided the money obtained by the al
legged fraud.
The method of operation, it is said,
was for DR. Lockhart to forge sick
benefit claims, turn them over to
Coleman, who properly endorsed
them and forwarded them to the
office, deducting the amounts shown
on the claims in renting money
collected by him in premiums for the
company as it's district agent. Such
claims when properly approved are
accepted by the home office as voueh-
ers, it being the custom to permit
the agents to settle sick claims apoii
presentation of physicians cerafl-
| cate.
Sick claims were said to have been
frequent from Richland, Lumpkin,
and Plains, particularly the Stewart
county towns. Finally they began to
pour in from Richland at rate that
aroused the suspicion of the home
office, with wide variety diseases
and ailments named which were not
generally prevalent. An Inspector
was sent to Stewart county to make
an investigation. He called on a
number of negroes whose names were
signed to tick benefit certificates
and to whom the claims were sup
posed to have been paid In no in
stance, according to Inspector Duck
EFT, was one found who had made
sick claim or who had been visited
by DR.. Lockhart, who had signet the
claims on which payments were
made.
DR.. Lockhart was called to Amer
icus for conference. he denied any
| irregularity. But later, when the in
vestigation drew to a close and the
evidence began to pile up, it is said,
! Coleman decided to turn lnformer
on an agreement Of immunity, which
agreement is said to have been made,
and the prosecution then centered on
! the physician.
Reports had reacher here in ad-
vance of the trip to Lumpkin Thurs
day that DR.. Lockhart would not be
at home when the officers called.
and it is doubted now that he will
be quickly located, despite the faca
that the penalty for the offense with
which he is charged is only misda.-
meanor, with a maximum penalty OF
year on the chain gang, SIX months
in jail and $1,000 fine.
! eve will saccept no settlement
| from DR.. Lockhart," said Duckett,
"for we intend to make an example
of him for the benefit of others VINO
may have it in mind now or at some
future time to work similar fraud
on an insurance company"
E