Two Maryland Transit Administration Police officers and a bus driver are accused of torching their cars and falsely reporting them stolen for the insurance money.
A federal grand jury has indicted Officer James Walthall, 40, of Randallstown, for mail fraud and the use of fire to commit mail fraud. If convicted, he could face life in prison.
The seven-count indictment, unsealed Wednesday, says Walthall disposed of four vehicles ? two belonging to other MTA employees ? to avoid repossession and further loan payments. Prosecutors also announced Wednesday that MTA employees Ronald Lurz and Lucretia Westbrook, both 35, were charged separately in connection with the scheme.
“We have worked closely with the U.S. Attorney?s Office to bring this matter to an indictment,” said Douglas Deleaver, chief of police for the MTA, said in a statement released to the media.
“Walthall has had his police power suspended since the inception of this case and has not worked in any police capacity,” he said.
The indictment alleges that, in 1999, Walthall falsely reported to the Baltimore City Police Department and the Allstate Insurance Co. that his 1997 Nissan Quest had been stolen, when he knew he had caused it to be burned the day before. In May 1999, Allstate Insurance Co. paid the claim.
The indictment also alleges Walthall caused a 1997 Ford Expedition he owned to be burned, and then reported the car stolen. In March 2003, State Farm Insurance Co. paid money to Ford Motor Credit, which held the loan on the vehicle at the time of the alleged theft. Prosecutors are also alleging that Walthall told Westbrook, an MTA bus driver, that he could dispose of her 2003 Chevrolet Tahoe in exchange for money.
Walthall allegedly burned the car, and then Westbrook submitted an insurance claim. State Farm Insurance Company then paid money to the MTA Employees? Credit Union. Walthall also made arrangements with Lurz, an MTA Police officer to burn Lurz?s 2003 Audi Quattro TT, the indictment alleges.
Walthall caused the car to be burned, the indictment says, and then Lurz filed a fraudulent claim with State Farm Insurance Co. The insurance company paid the insurance claim money to MTA Employees? Credit Union.
The U.S. Attorney?s Office investigated the alleged scheme with the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Baltimore City Police Department and the Maryland Transportation Authority.
