Paul Richard Massey, Wire Fraud and Money Laundering, West Virginia 2023

BECKLEY, W.Va. – Paul Richard Massey, a 50-year-old man from Shady Spring, pleaded guilty to federal fraud crimes in a West Virginia court, admitting to issuing fraudulent payments as an insurance claims adjuster and using the money to fund a powersports business.

Massey, who was employed as a claims adjuster for Allstate Insurance Company from 2015 until June 2019, had the authority to issue settlement check payments to policy holders and businesses on behalf of Allstate to settle insured property damage claims.

According to court documents and statements made in court, Massey authorized and issued a $15,110.29 check on behalf of Allstate to a business called American Mitigation Services LLC, also known as AMS Cleaning, on December 26, 2018. The check was issued for mitigation work allegedly performed by AMS Cleaning and was deposited into AMS Cleaning’s bank account. Massey admitted that this payment was fraudulent, as AMS Cleaning had completed no work to justify the payment.

Massey further admitted that he had a business relationship with AMS Cleaning and was an authorized signer on the business’s bank account. He also admitted that he authorized and issued 68 fraudulent claim payment checks totaling more than $850,000 on behalf of Allstate to AMS Cleaning from at least January 22, 2018, until at least June 19, 2019. Massey attempted to hide the fraudulent nature of some of these checks by creating fraudulent receipts and documents that appeared to justify the payments.

Massey used the fraudulent claims payments deposited in AMS Cleaning’s bank account to fund Massey Powersports LLC, a Beckley business owned and operated by Massey. The investigation revealed that Massey routinely wrote checks from AMS Cleaning’s bank account to pay Massey Powersports employees, to purchase inventory for Massey Powersports, and to pay Massey Powersports’ recurring bills.

Massey attempted to conceal his scheme from investigators, including falsely telling an Allstate fraud investigator that he had no financial interest in AMS Cleaning. He also created and submitted a fictitious $1 million sales contract for AMS Cleaning in response to a federal grand jury subpoena.

Massey is scheduled to be sentenced on August 4, 2023, and faces a maximum penalty of 30 years in prison, three years of supervised release, and a $500,000 fine. Massey owes $862,871.29 in restitution.

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