Man Convicted of Insurance Fraud
MD ( June 14, 2010) -Attorney General Douglas F. Gansler
announced today that Walter Nelson Cannaday, 50, of Beltsville,
pled guilty and was sentenced on a single count of felony insurance
fraud. Judge Maureen M. Lamasney of Prince George’s County
Circuit Court imposed a 15 year sentence, suspending all but
seven years, five years probation, and ordered $56,500 restitution.
On October 8, 2007,
Cannaday filed an insurance claim with Penn National Insurance.
He alleged that while working as a subcontractor
on a site in Prince George’s County and laying fiber optics
on behalf of Verizon, boxes were “fried” because he
laid the wrong cable. Cannaday told the claims adjustor that STARZ
Technology, the contractor that hired him, billed him $78,290 for
the damage he caused by putting in dual cable instead of single.
Cannaday supplied fraudulent documents to Penn National in support
of his claim. Penn National paid out on the claim and issued a
check for $56,500. However, an investigation revealed that no boxes
were ever damaged and that Cannaday was not the subcontractor at
the location. It was further determined that the laying of fiber
optics or the connecting of fiber optics cannot cause anything
to burn or “fry.”
The conviction follows
a joint investigation by the Insurance Fraud Division of the
Maryland Insurance Administration, the Maryland
State Police and the Office of the Attorney General. In making
today’s announcement, Attorney General Gansler thanked Assistant
Attorney General Roberta Siskind for her work on the case.