September 03, 2000
ATTORNEY GENERAL THURBERT BAKER ANNOUNCES CONVICTION IN MAJOR SAVANNAH INSURANCE FRAUD CASE
Mr. Burnsed incorporated Selective Foundation Corporation in Delaware. He then sold insurance policies from this company in Georgia, despite not having a certificate of authority from the Insurance Commissioner in either Georgia or Delaware. He also did not maintain the reserves required by Georgia law of an insurance company doing business in this state, nor did he make the required deposit with the Georgia Insurance Commissioner. Instead, Mr. Burnsed used premium payments from some customers to pay claims made by other customers. A large percentage of Mr. Burnsed’s victims were elderly.
“When I believe a person is defrauding Georgians, especially the elderly, I will thoroughly investigate and vigorously prosecute him,” Baker said. “We hope to send a strong message in Georgia that we take protecting our consumers seriously,” he continued.