Anchorage Couple Found Guilty in Scheme to Defraud State Farm

An Anchorage couple was found guilty on 12 counts of wire fraud in a scheme to defraud State Farm Insurance, it was announced by the Department of Justice on Wednesday.

According to the release by U.S. Attorney Karen L. Loeffler, Arnold Wesley Flowers, II, age 41, and Miranda May Flowers, age 31, were found guilty of all 12 counts that they were charged with.

According to evidence, the couple moved several items from their home into a storage unit at Best Storage on Tudor Road on January 17th. Then on January 18-19, the Flowers staged a burglary at their rented home on Larkspur Circle. The fake burglary was reported to the Anchorage Police Department, and they reported that several big screen television sets, jewelry, clothing, shoes, designer handbags and sunglasses, video games, computers, and other electronics were stolen from their home.

On January 25th, the Flowers filed a formal claim with State Farm Insurance, where they held a renter’s insurance policy. When they filed, they listed all the items that they had previously hidden in the storage unit. They valued the property at over $82,000.

Throughout the scam, the Flowers contacted State Farm in the lower 48 and Hawaii, making multiple phone calls an sending multiple emails, in an effort to cash in on their spurious claim.

Since their scam to defraud State Farm Insurance, Mr. Flowers has also been found guilty of “possession of cocaine with intent to distribute and felon in possession of firearms,” in a jury trial in October.

The successful prosecution of the case by Assistant U.S. Attorney Kelly Cavanaugh and Assistant U.S. Attorney James Barkeley was made possible through the investigations of the FBI, APD, the Safe Streets Task Force, the State of Alaska Division of Insurance and the IRS.