New Iberia man arrested for fraud, forgery after scamming local school employees

After bilking four Terrebonne Parish school employees, a former New Iberia insurance agent was arrested last Wednesday on insurance fraud and forgery charges.

Louisiana State Police Insurance Fraud and Auto Theft Unit investigators said David Sampy, 43, of New Iberia, allegedly altered the insurance applications of four Terrebonne Parish school employees during the 2004-2005 school year.

“Our unit operates as a task force and when the department of insurance receives complaints from insurance companies or individual the criminal acts get turned over to us,” said State Police Sgt. Stacey Pearson.

Sampy worked as a representative for the Indiana-based company, Conseco Health Insurance.

Pearson said Conseco received complaints against Sampy alleging he altered the four individuals’ premiums to increase his commission. Investigators told the Associated Press that Sampy forged the clients’ initials without their knowledge.

“This incident happened in 2005. However, there is a four-year statue of limitations clause on insurance fraud, so were still able to charge Sampy for his crimes,” Pearson said.

In October of 2006, the state insurance department issued a cease and desist order, which barred Sampy from conducting business. The fraud unit received the case in November of 2006.

Sampy has been transported to Terrebonne Parish jail and booked on four counts of insurance fraud and one count of forgery. His bond was set at $100,000.

No others complaints have been filed against Sampy, Pearson said.

A representative from the state Department of Insurance said fraud costs Americans at least $80 billion per year.

In effort to address the problem, Louisiana legislature created a multi-agency task force dedicated to solely investigating and prosecuting insurance fraud in the state.

The Associated Press contributed to portions of this article.