Jul 31, 2012 7:21 PM
PHOENIX - Megan Monroe Racz was indicted this month by the Arizona State Grand Jury with 14 felony counts.
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Officials with The Arizona Department of Insurance and Attorney General's office tell News 4 Tucson Investigators the charges relate to 37 victims out of about 900 potential victims. Officials tell us there is no need to go further and information from the hundreds of other victims could be used if needed.
Ms. Racz's attorney stated in an email to the Investigators on Tuesday, "The only response we have at this time is that Ms. Racz will enter a not guilty plea to all of the charges at her arraignment."
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Below is a Press Release from Attorney General Thomas Horne:
AG Horne Announces Insurance Fraud Indictment Involving Seniors
PHOENIX (Monday, July 30, 2012) -- Attorney General Tom Horne today announced that 30-year old Tucson resident Megan Monroe Racz has been indicted by the State Grand Jury on charges related to insurance fraud involving senior citizens. All 37 of Racz's alleged victims are aged 65 or older.
"Insurance fraud, especially when it involves the most vulnerable in society is a terrible crime," Horne said. "The state Department of Insurance is to be commended for its investigation of these alleged offenses, and my office will work very hard to vigorously prosecute this case."
The State alleges that Racz, acting in her capacity as an insurance agent, during the Medicare open enrollment period from November 2011 through December 2011 transferred the Health Net Medicare supplemental policies of 37 people, four who were deceased at the time, to United Health Care supplemental polices without the consent of the policyholders. These unauthorized transfers were brought to the attention of the Arizona Department of Insurance by United Health Care, Health Net, and policyholders, who were notified their Health Net Medicare supplemental policies were being cancelled or who received information about new United Health Care policies that they never requested. United Health Care and Health Net worked together to see that none of the policyholders' Medicare coverage lapsed. The State alleges Racz received over $25,000.00 in commissions for transferring the Medicare supplemental policies.
Racz was formally indicted on one count of Fraudulent Schemes and Artifices, a class 2 felony; one count of Theft, a class 2 felony; six counts of Aggravated Identity Theft, class 3 felonies; two counts of Identity Theft, class 4 felonies; and four counts of Forgery, class 4 felonies.
These charges are merely allegations, and the defendant is presumed innocent until and unless proven guilty.
This matter was handled by Assistant Attorney General Beverly Rudnick. The case was investigated by the Arizona Department of Insurance Fraud Unit.