ABC and the Michael Davis Fraud Case
Accelerated Benefits Corp. bought
policies from SouthWest Viatical, the Dallas, Texas-based company headed by paroled
murderer Michael Lee Davis (a/k/a Walter Waldhauser). SouthWest Viatical specialized in
fraudulent policies. In the late spring of 2000, Michael Davis was sentenced and various
others either pled guilty or went to trial, including insureds who
"clean-sheeted" their health when they applied for new life insurance policies.
Davis' colleague, Hoyt Wauhob, also
is an ex-con. He became vice president of Southwest Viatical.
Following is a letter that was part
of the evidence entered at trial. The letter, written by Michael Davis to Jerry Fadal,
underwriter for Accelerated Benefits Corp., describes the results of discussions that took
place between Hoyt Wauhob and Keith LaMonda, and suggests ways to handle these fraudulent
policies in order to avoid suspicion by insurance companies.
A number of insurance agents were
involved, and a number of insurance companies were "taken" by this scheme.
Rather than go to trial, the insurance agents chose not to fight the charges. Thus, their
admission of how they conducted their part of the fraud is described in a statement
entered at court, including the names of those who agreed to this confession. If
you would like this information, please
email us and we will send
it at no charge as an email attachment.
