North Carolina Auto Fraud Ring Busted

North Carolina Insurance Commissioner Jim Long announced the arrest of two Eastern North Carolina residents for their roles in what Department of Insurance investigators have identified as an auto insurance fraud ring spanning four years and worth more than $100,000 in phony insurance payments from staged accidents.

Department investigators arrested Rayon Lamont Artis, 32, of Greenville and charged him with five counts of conspiracy to obtain property by false pretenses. He was processed at the Lenoir County Sheriff's Office and placed under a $250,000 secured bond. The same day, investigators also indicted Arturo Leon Carmen, 29, of Ayden, and charged him with one count of conspiracy to obtain property by false pretense. Carmen was already in custody on unrelated charges; he was processed at the Lenoir County Sheriff's Office and placed under at $50,000 secured bond.

A day later, Department investigators arrested Jermaine Keys of Greenville and charged him with one count of conspiracy to obtain property by false pretense; he was processed at the Lenoir County Sheriff's Office and placed under a $10,000 secured bond. The Pitt County Memorial Hospital Police Department assisted with the arrest.

The next day, Department investigators arrested Shawana Latrece Smith, 26 of Greenville and charged her with one count of conspiracy to obtain property by false pretense; she was processed at the Lenoir County Sheriff's Office and placed under a $10,000 secured bond.

Department investigators allege that as the ringleader, Artis conspired with Carmen, Keys, Smith and others to stage auto accidents and submit phony claims to insurance companies. The scam has netted more than $100,000 to date, and additional arrests and charges are expected as the investigation continues. GMAC Insurance Company tipped off Department investigators to the fraud ring.