Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1921-07-15
Big Negro Insurance Fraud Is Uncovered Here
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 Lumpkfn bv
Attorney EolIis Fort, of Americus,
representing the Georgia Mutual In
surance company, of Augusta, a me-
gro concern, against Dr. A. @. Lock-
hart, a negro physician of Lumpkin,
and turned over to Sheriff johnson.
The sheriff still has the warrant, the
negro physician having disa ppeared,
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 70 alleged
forged and fraudulent claims. That
the amount involved will be consid-
erably m excess of tf2 amount named
is the belief of those investigating
the case.
Involved with DR.. Lockhart is T.
j. Coleman, an Americus negro, who
has been district agent for the in
surance company, and who, it is said,
has turned states evidence and Civ
en- much information concerning the
transactions. According to the in
formation, he and DR.. Lockhart di-
Vided the money obtained by tiss al
legged fraud H@I'sHls5=s.
The method of operation, it isEaaid,
was for DE-. Locllhart to forge sick
benefit claims, turn them over to
Coleman, who properly enddl#ed
them and forwarded them toWthe
office, deducting the amounts Shown
on the claims in renting money
collected by him in premiums for the
company as its district agent. Such
claims when properly approved are
| accepted by the home office as vouch-
ers, it being the custom to perlfis
the agents to settle sick claims upon
presentation of physicians certifi-
cate.
Sick claims were said to have heen
frequent from Richland, Lumpk;n,
and Plains, particularly the Stewart
county towns. Finally they began to
pour in from Richland at a rate that
aroused the suspicion of the home
office, with a wide variety of diseases
and ailments named which were not
generally prevalent. An inspector
was sent to Stewart county to make
an investigation. He called on
number of negroes whose names were
signed to sick 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
a sick claim or who had been visited
by DR.. Lockhart, who had signe1 the
claims on which payments were
made.
DR.. Lockhart was called to Amer
icus for a conference. he denied any
irregularity. But later, when the in
vestigation drew to close and the
evidence began to pile up, it is said,
Coleman decided to turn informer
on an agreement of immunity, which
agreement is said to have been made,
and the prosecution then centered on
the physician.
Reports had reached here in adj
vance of the trip to Lumpkin Thurs
day that DR.. Lockhart woull not be
at home when the officers called,
and it is doubted now that he will
be quickly located, despite the fact
that the penalty for the offense with
which he is charged is only a misda-
meanor, with a maximum penalty of
year on the chain gang, six months
in jail and 81 900 fine.
"We will accept 40 settlement
from Dr. Lockhart," said Duekctt,
'for we intend to make an example
of him for the benefit of others who
may have it in mind now or at some
| future time to work similar fraud
on an insurance company