Michael N. Smith, Insurance Fraud Scheme, Toledo OH, 2023

TOLEDO, OH – Two Toledo men are facing federal charges after a long-dormant indictment surfaced, alleging a sophisticated scheme to fleece insurance companies out of over $135,000. Michael N. Smith, age 57, and Darryl Richardson, age 57, are accused of orchestrating a network of fake auto accidents for financial gain.

According to the indictment filed by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, the pair conspired to commit mail fraud between December 2006 and March 2009. The scheme involved recruiting numerous co-conspirators to stage collisions and then file bogus claims with multiple insurance providers.

The indictment details more than 20 fraudulent claims submitted to major insurers, including GEICO, Safe Auto Insurance Company, Permanent Generl, n/k/a The General, and Progressive Casualty Insurance Company. Investigators believe Smith and Richardson profited handsomely from the scheme, lining their pockets while insurance premiums quietly climbed for honest policyholders.

Federal investigators from the United States Postal Service (Cleveland, Ohio), the United States Secret Service (Toledo, Ohio), and the National Insurance Crime Bureau (Chardon, Ohio) pieced together the evidence, ultimately leading to the indictment. Assistant United States Attorney Joseph R. Wilson is prosecuting the case. While the indictment has been filed, it’s crucial to remember this is only the first step.

“An indictment is only a charge and is not evidence of guilt,” a DOJ statement reads. Both Smith and Richardson are entitled to a fair trial where the government must prove their guilt beyond a reasonable doubt. The court will determine the sentence after reviewing factors like prior criminal records and the roles each defendant played in the alleged conspiracy.

If convicted of conspiracy to commit mail fraud, the maximum sentence is determined by the Court. However, the statement clarifies that in most cases, the sentence will fall below the statutory maximum. Grimy Times will continue to follow this case as it moves through the legal system, bringing you the unvarnished truth from the federal courthouse.