(HOUSTON, Texas) – Three people have been sentenced for their roles in a large insurance fraud scheme spanning five years, United States Attorney Don DeGabrielle announced today. U.S. District Judge Lee Rosenthal sentenced Angela Armstrong, 41, of Humble, Daniel Hunger, 55 of Angleton, and Debbie Rampiarie Ramcharan, 47, of Humble, late Thursday, May 14.
Numerous insurance companies lost millions of dollars in pay-outs on fraudulent water claims on primarily residential properties as a result of this scheme. These properties were intentionally flooded with a water hose and allowed to sit for several days. As a result, mold and mildew would form on the structure which lead to an increase in the amount of the claim. In addition, furniture and other household items were moved from a warehouse into the flooded property to embellish the contents claim under the policy. A third claim under the policy was made for additional living expenses requiring the insurance company to pay for the insured’s living expenses while the intentionally flooded house was being repaired.
As part of the scheme, Armstrong, Ramcharan and Hunger all posed as an insured and filed false claims with the insurance companies. In addition, Armstrong acted as an independent contractor in various other fraudulent claims and recruited family members to submit claims as well. Hunger also recruited others to file fraudulent claims and then worked as a construction contractor to rehabilitate some of the intentionally flooded properties.
Armstrong and Ramcharan were convicted by a jury June 16, 2007, on nine counts each of mail fraud, engaging in monetary transactions in criminally derived property and conspiracies to commit the above offenses. Hunger entered a plea of guilty to conspiracy to commit mail fraud and conspiracy to engage in monetary transactions in property derived from specified unlawful activity. Judge Rosenthal sentenced Armstrong to 60 months imprisonment on the conspiracy to commit mail fraud and mail fraud counts and 97 months for engaging in monetary transactions in criminally derived property and conspiring to do so. Both sentences are to run concurrently. Judge Rosenthal also imposed a special assessment of $900, ordered her to pay $2,326,713 in restitution and further ordered her to serve three years of supervised release upon release from prison. Ramcharan received a sentence of 46 months imprisonment on all counts and was ordered to pay a special assessment of $900 and restitution in the amount of $1,334,050. Hunger was sentenced to imprisonment of 12 months and one day and ordered to pay restitution in the amount of $1,403,558. Hunger and Ramcharan will also serve a three-year-term of supervised release after completion of their prison terms.
This case was investigated by the FBI, United States Postal Inspection Service and the Internal Revenue Service. The case was prosecuted by Assistant United States Attorney Melissa Annis.
