Dudley Bledsoe, Unlawful Monetary Transaction, West Virginia 2012

BLUEFIELD, W.Va. - Two Wyoming County men have been brought to justice for their roles in a scheme to commit insurance fraud by arson. Dudley Bledsoe, 63, of Hanover, and James Keith Browning, 54, also of Hanover, have been sentenced in federal court for their crimes.

Bledsoe was sentenced to 24 months in prison and ordered to pay $294,085.07 in restitution. Bledsoe previously pled guilty to an unlawful monetary transaction charge. Meanwhile, Browning received 50 months' imprisonment and was ordered to pay restitution in the amount of $211,553.50. Browning previously pled guilty to arson to commit wire fraud.

The scheme, which took place in the spring of 2012, involved Bledsoe, with the assistance of James Edward Lester, also known as “Punkin,” and others, purchasing a house in Matoaka, Mercer County. The purchase price was approximately $38,000. They insured the property for over $300,000 and set fire to the house in December of 2012 using cardboard and unscented candle oil. Bledsoe then filed false claims for the house and its contents, collecting the proceeds and dividing them with others involved in the scheme.

In a separate incident, Browning, along with James “Punkin” Lester, devised a scheme to purchase a house in Ikes Fork, West Virginia, place it in Browning’s name, obtain insurance on it, and burn it to collect the proceeds. The property was located at 9068 Interstate Highway. Lester, Bledsoe, and Browning manufactured an alibi for when the house was burned. The house burned on August 16, 2013, while Browning and Lester were at the West Virginia State Fair. Browning then filed a fraudulent claim with the insurance company for the loss of the house and for items purportedly contained in the house.

Ultimately, Browning received $100,000 from the insurance company for the false claim. Browning then divided the proceeds with Bledsoe and Lester. Four other defendants involved in the scheme were convicted following a five-day jury trial in Charleston. The jury found Windel Lester, 67, his ex-wife Georgetta Lester Kenney, 42, and Windel Lester’s sons, James “Punkin” Lester, 48, and Greg Lester, 41, guilty of various charges related to the arson and insurance fraud scheme.

United States Attorney Michael B. Stuart commended the West Virginia Insurance Commission, the United States Postal Inspection Service, and the West Virginia State Police for their investigation. The case was prosecuted by Assistant United States Attorneys R. Gregory McVey and Philip H. Wright. Senior District Court Judge David A. Faber handed down the sentences.

“Greed leads to reckless, dangerous behavior,” said United States Attorney Mike Stuart. “Crimes that endanger lives and property will be prosecuted every day of the week by this United States Attorney.”

Source: https://www.justice.gov/usao-sdwv/pr/two-wyoming-county-men-sentenced-roles-insurance-fraud-arson-scheme