HARRISBURG, PA — Attorney General Dave Sunday has announced the sentencing of Lori Retus, the final individual charged in a Cumberland County auto insurance fraud scheme that resulted in over $300,000 in fraudulent payouts.
Retus, 51, received a sentence of four years’ probation, with the first six months to be served under house arrest, as determined by a Cumberland County judge on Tuesday.
The complex insurance scam was led by 25-year-old Kwa’rai Samuel, who was sentenced last month to 5 to 10 years in state prison. Another co-conspirator, 46-year-old Kevin Hartung, is currently serving a 2-to-5-year prison term.
All three defendants were ordered to collectively pay $300,988 in restitution.
The investigation, spearheaded by the Office of Attorney General and the 52nd Statewide Investigating Grand Jury, revealed that the group used stolen identities and false information to obtain insurance policies. They then filed fictitious accident reports to collect insurance payouts.
“This was an elaborate scheme that targeted unsuspecting residents who had their identity stolen, and defrauded insurance companies into lucrative payouts on claims,” said Attorney General Sunday. “Insurance fraud causes wide-ranging damage, as it leads to higher premiums for hard-working consumers who rely on their vehicles daily.”
Each member of the group — Samuel, Hartung, and Retus — pleaded guilty to charges including corrupt organizations, insurance fraud, and theft by deception.
In total, 42 fake insurance claims were submitted, with 21 resulting in payouts totaling more than $300,000.
Senior Deputy Attorney General Kristyne Crist and Deputy Attorney General April Lysaght from the Insurance Fraud Section are leading the prosecution.
