Two More Plead Guilty in AEP Power Surge Scam

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CHARLESTON, WV—U.S. Attorney BoothGoodwin today announced that two more individuals pleaded guilty in federalcourt in a scheme to submit fraudulent claims for power surge damage toAmerican Electric Power Service Corporation, Inc. (“AEP”). Mark Ingram, 42, andCrystal Ingram, 32 both of Nitro, West Virginia, pleaded guilty to the felonyoffense of conspiracy to commit mail and wire fraud.
The defendants admitted that theycolluded with former AEP property damage claims adjuster Deborah Farmer tounlawfully obtain money from AEP by submitting fraudulent claims for powersurge damage. Farmer, 47, formerly of Winfield, pleaded guilty in April toconspiracy to commit mail and wire fraud. Farmer admitted that she arranged thescheme and conspired with other individuals to unlawfully obtain money from thepower company by submitting the fraudulent claims. Seven other co-defendantshave also previously pleaded guilty to their role in the scheme and likewiseawait sentencing.
A two-year investigation revealed thatfalse claims were filed with AEP related to power surge damage to homes. Mr.Ingram and Mrs. Ingram each admitted that they joined the conspiracy to commitmail fraud when they filed fraudulent claims and received the fraudulent checksthrough the mail. The defendants then cashed the checks, took a portion of thepayoff and gave the remaining proceeds back to Ms. Farmer or other defendants.
Mr. and Mrs. Ingram admitted that theyclaimed a total of four fraudulent checks for a total of $53,000. Ms. Ingramalso admitted to introducing three other people to Ms. Farmer so that theycould file fraudulent checks with AEP. Other co-defendants involved in theconspiracy admitted to receiving checks ranging from $4,000 to as much as$19,000 per fraudulent claim at various times between March 2009 and March2010.
A total of 57 fraudulent claims werefiled resulting in a loss to AEP of approximately $598,485.
Mr. and Mrs. Ingram each face up to 20years in prison and a $250,000 fine when they are sentenced on September 18,2012 by United States District Judge John T. Copenhaver, Jr. All defendantsagreed to restitution based on the total number of claims checks they cashed.The court will fix the final amount of restitution owed by each defendant atsentencing.
The Federal Bureau of Investigation,United States Postal Inspection Service, and West Virginia State Police arehandling the investigation. Assistant United States Attorney Erik S. Goes is incharge of the prosecution.