San Diego authorities break up insurance fraud

Thursday December 19, 2002

SAN DIEGO (AP) An insurance adjustor has been arrested for allegedly approving more than $700,000 worth of bogus claims for the deaths of two fictitious children. Authorities were seeking two others who allegedly filed the claims.

Gaylan Sweet, 34, an Allstate insurance claims adjustor, was arrested Wednesday in San Diego, according to the District Attorney's office.

Sweet, along with Leigh Anne Sanders, 32, of San Diego and Ruther Brown, 33, of Oklahoma are accused of filing bogus insurance claims with Northbrook, Ill.-based Allstate Corp. over the last two years.

Brown received a $500,000 payout earlier this year for the death of his 11-year-old imaginary child, Ruther Jr., authorities said. Sanders received $210,000 two years ago for the death of her nonexistent son, Timothy.

The claims detailed traffic accidents that never occurred on streets that do not exist and included bogus eyewitness accounts and fake police reports, authorities said.

Warrants have been issued for the arrest of Brown and Sanders.

Kion Gould, 33, also was arrested Wednesday, according to The San Diego Union-Tribune. His alleged role was unclear.

The four suspects are associated with each other but authorities aren't clear on their exact relationships, said prosecutor Terry Cannon. The three men played basketball together for year, Cannon said.

The case is believed to be the largest fraud of its kind in San Diego history, he said.

(Copyright 2002 by The Associated Press. All Rights Reserved.)