Woman guilty of $10 million fraud arrested in Jonesboro | Crime
On Monday, Jonesboro police arrested a woman at the center of a multi-million dollar insurance fraud case.
Officer Melissa Wells and U.S. Marshall Bob Sharp arrested Carolyn Hudgins, 61, at her home in the 200-block of Warner on a probation violation and an out of town warrant.
In 2005, Hudgins pleaded guilty to conspiracy to commit insurance fraud.
At the time Hudgins was the executive vice president of Reciprocal of America (ROA), which provided malpractice insurance to tens of thousands of doctors, hospitals and lawyers. In 2002 the company collapsed.
According to the U.S. Department of Justice, Hudgins and the company president Kenneth Patterson “fraudulently transferred $10 million” to an offshore account. The two reportedly admitted to concealing and misrepresenting the company’s financial condition to prevent ROA’s collapse.
Hudgins was sentenced in 2005 to 5 years in prison, $250,000 in fines and ordered to pay restitution.
According to the U.S. Marshal’s office, Hudgins “moved around” the money meant for restitution.
Following her arrest, Hudgins was taken to the Craighead County Detention Center. She is currently free on bond.
Photo provided by Craighead County Sheriff's Office.