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Kentucky DOI fraud investigation results in more than $2 million in restitution for 16 victims

Sixteen victims will receive a combined $2 million in court-ordered restitution as a result of an investigation completed by the Kentucky Department of Insurance (DOI) Division of Insurance Fraud Investigation in conjunction with the Lexington Police Department.

Robert Lincoln Williamson II was indicted in late 2014 and pleaded guilty to 13 counts of theft in May 2017, after almost three years of eluding law enforcement.

DOI fraud investigators began investigating Williamson in 2013 after a Lexington-area insurance agency reported that he was engaged in suspected fraudulent activity. Williamson, a licensed insurance agent at the time, convinced individuals to cash personal savings and retirement funds with the promise that he would re-invest those funds in high-return products.

“Mr. Williamson gained the trust of his victims by using terms like ‘bond’ and ‘securities’ and guaranteeing investment success with limited risks,” said Willie Skeens, a supervisor with the DOI Division of Insurance Fraud Investigation. “Unfortunately, Mr. Williamson did not use the funds as promised and, instead, kept the money by successfully moving it between nine bank accounts at three different banks to disguise his activities.”

DOI investigated Williamson for nearly a year, working with the Lexington Police Department and the Kentucky Department of Financial Institutions, before a Fayette County Grand Jury indicted him in November 2014.

Following his indictment, Williamson fled the Commonwealth to avoid prosecution. He was later arrested in South Dakota in 2015 but fled before he could be extradited to Kentucky. During this time, DOI investigators continued to partner with local law enforcement and investigators in other states to locate Williamson.

Finally, in late 2016, he was extradited to the Commonwealth after being arrested in Florida.

Williamson pleaded guilty to 13 felony counts of theft by failure to make required disposition of property over $500 but less than $10,000. He was sentenced in Fayette Circuit Court to 15 years in prison and was ordered to pay restitution in the amount of $2,078,808.26 to 16 victims.

“Despite the complexities and length of this case, DOI’s dedicated team of investigators and administrators persevered,” said Dwayne Depp, director of DOI’s Division of Insurance Fraud Investigation. “The Lexington Police Department and the Fayette County Commonwealth’s Attorney’s Office provided invaluable support during the investigation to ensure that justice was served for the victims.”

This year, DOI’s Division of Insurance Fraud Investigation has already received over 1,200 fraud referrals and conducted investigations resulting in 74 convictions and $2,439,103.07 in restitution for victims. Suspected insurance fraud can be reported online at insurance.ky.gov.

From Kentucky Public Protection Cabinet

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