Desoto Man Tricked Insurance Companies Into Paying Him $5 Million For Stuff He Didn't Own

Categories: Crime

Seismometer.jpg
skasamatsu
Damage too many of these, and the insurance company will start getting suspicious.
Leroy Nelson, it's fair to assume, has never owned a "remote aircraft landing marker." Or a "seismographic probe." Or a "chemical pipeline examiner," which sounds like it would be a person but actually appears to be a made-up piece of equipment.

Nelson, though, is not the type to let bourgeois notions of "ownership" and "physical existence" get the way of his profit. The 61-year-old Desoto man pleaded guilty this morning to running a scheme that collected $5 million through fraudulent insurance claims.

The con went like this: Starting around 2005, Nelson began recruiting business partners, paying them cash and having them filing false reports to their insurance companies, usually claiming they had accidentally rear-ended a trailer or swerved and hit a piece of equipment sitting on the side of the road. Nelson, in turn, would submit a claim using the name of a shell business he created, including a photo of the equipment and a fictitious repair estimate, usually between $16,000 and $19,000. He had the settlement checks mailed to a couple of warehouses on Explorer Street in Dallas or to post office boxes he rented.

The insurance company or companies (Farmers is the only one named in prosecutors' announcement of Nelson's guilty plea) eventually caught on, as tends to happen when one starts filing made-up claims, though it took awhile. Nelson's scheme lasted from 2005 to 2012, and even then authorities don't seem to have grasped its full extent.
Since he was indicted last April, the feds' estimate of his total fraud expanded from $3.5 million to $5 million.

Nelson now faces up to 30 years in prison and a $500,000 fine. Authorities have seized several vehicles, a motor home, a boat and trailer, and real estate in Duncanville and Cooper.

Send your story tips to the author, Eric Nicholson.

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18 comments
boogerleo
boogerleo

See if you can get greater detail. Seems like it would work if it was done properly. If a dufas from Desoto can do it for 8 years, someone from the big city could get by for a lot longer!

TheCredibleHulk
TheCredibleHulk topcommenter

"Seismographic probe" sounds uncomfortable, to say the least.

mcdallas
mcdallas

"Chemical pipeline examiner".  Sounds like DEA-speak.

tdkisok
tdkisok

Too bad the guy isn't a Mexican. The comments section would be happenin'.

ruddski
ruddski

@mcdallas

Or a new non-mechanical colonoscopy procedure.

ruddski
ruddski

@tdkiosk

So, if the guy actually was a foreign national, would you feel morally bound to defend him on "racial" grounds?

doublecheese
doublecheese

@tdkisok  His name is Leroy and lives in Desoto.  What are the odds this guy is white?   Maybe we're not racist enough to hate on blacks?  

tdkisok
tdkisok

@ruddski  


Hook line and sinker. I just knew you would have to post something. But I am hurt that you didn't do it in a Looney Tunes voice. 



tdkisok
tdkisok

@ruddski  


Oh please. Lower your image of your keenness a tad. You are still stepping in a big pile of stupid on a daily basis while being just a troll with a "Top Commenter" badge. 


Come on, which Looney Tunes voice is it today? 

ruddski
ruddski

@tdkiosk

You're not very good at defending your positions and statements, but your admission of weakness is refreshing. Good trolls will often have more than one level of stupid argument on the ready. Take lessons from bvckvs.

tdkisok
tdkisok

@doublecheese 


"I hope you never find out that nobody cares that you are a Mexican."


HAHAHAAHAHAHAHAHA!  I hope my parents don't find out, they will be surprised!!  HA!

ruddski
ruddski

@tdkisok

Actually, if you read news, or actually know any blacks or Mexicans of legal status or not, there's a lot of animosity between those communities, they're both after the same piece of the American pie. White trash doesn't really figure in that battle anymore.

If you defend foreign nationals here illegally - most of whom are from Mexico - then technically, you are expressing de facto hatred of both the black community, and the Mexican-American community.

doublecheese
doublecheese

@tdkisok @doublecheese  It must be invigorating to continually imagine yourself as some kind of persecuted martyr.  I hope you never find out that nobody cares that you are a Mexican.

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