A 26-year-old Burlington man faces felony charges after allegedly collecting nearly $9,000 in temporary disability payments while actively working at a concrete construction company. Edgar Octavio Ambrocio Perez was arrested May 27 in what investigators describe as a clear-cut case of insurance fraud that cost Specialty Insurance Company $8,736.56 over a three-month period.
The Investigation and Charges
According to the North Carolina Department of Insurance, Perez collected temporary disability payments from September 4, 2024, to December 5, 2024, while simultaneously working for Donley's Concrete Group. Special agents with the Department's Criminal Investigations Division determined that Perez was "actively working" during the entire period he received the fraudulent payments.
Perez, who resides at 909 Grace Avenue in Burlington, was charged with insurance fraud and obtaining property by false pretense, both Class H felonies in North Carolina. He was arrested in Robeson County and released on a $10,000 unsecured bond, with his court appearance scheduled for May 30 in Wake County District Court.
The Employer: Donley's Concrete Group
Donley's Concrete Group, the company where Perez was employed during the fraud period, is a well-established construction firm with roots dating back to 1941. According to Dun & Bradstreet, the North Carolina operation, based in Apex, employs 150 people and generates approximately $21.79 million in annual sales. The company specializes in concrete construction services, restoration, and parking deck development across multiple states including North Carolina, Ohio, Virginia, and South Carolina.
Donley's operates as an employee-owned company and ranks among the top 20 concrete contractors nationally. The firm has maintained steady growth and recently underwent leadership changes, with Mac Donley transitioning to Chairman and Mike Dilley assuming the role of CEO in 2024.
Rising Trend of Insurance Fraud in North Carolina
This case represents part of a broader pattern of insurance fraud prosecutions across North Carolina. The North Carolina Department of Insurance announced a record-breaking 406 arrests through its Criminal Investigations Division in 2024, along with 218 convictions and $144 million recovered for state residents.
Recent similar cases prosecuted by the department include an Archdale man charged with multiple insurance fraud counts for falsifying claims totaling over $10,000, and a Wilson County man charged with three felonies related to fraudulent insurance activities. According to legal experts, North Carolina experiences significantly more property-related fraud complaints than most states, largely due to natural disasters like hurricanes and flooding.
The State's Fraud Fighting Efforts
The North Carolina Department of Insurance's Criminal Investigations Division is the nation's oldest state insurance department fraud unit. Commissioner Mike Causey has made aggressive prosecution of insurance fraud a priority, emphasizing its impact on all consumers through higher premiums.
"Insurance fraud is not a victimless crime," Commissioner Causey stated in the press release announcing Perez's arrest. "It hits all of us in the pocket through higher premiums." National statistics indicate that insurance fraud costs Americans $308.6 billion annually, with disability insurance fraud representing a significant portion of these losses.
Legal Implications and Penalties
Under North Carolina law, insurance fraud carries serious consequences. Both charges against Perez are Class H felonies, which can result in prison sentences and substantial fines. FindLaw notes that while insurance fraud penalties are considered somewhat mild compared to other criminal offenses, the state has been increasing enforcement efforts.
Recent cases processed through Wake County District Court show varied outcomes, with secured bonds ranging from $2,500 to $300,000 depending on the severity and scope of the fraud. The court typically handles these cases expeditiously, with most defendants appearing within days of their arrest.
Impact on the Community
The case highlights ongoing challenges with disability insurance fraud, which can take various forms including working while collecting benefits, exaggerating conditions, or faking medical conditions entirely. Industry research shows that disability insurance fraud results in substantial financial losses totaling billions of dollars nationwide, ultimately driving up premium costs for legitimate policyholders.
The Department of Insurance encourages North Carolinians to report suspected fraud by calling 919-807-6840 or the toll-free number 888-680-7684. Reports can be made anonymously, and the department processes both individual cases and larger fraud schemes involving multiple perpetrators.
Bottom Line: This Burlington case underscores the state's commitment to aggressively prosecuting insurance fraud while highlighting how individual acts of fraud contribute to higher costs for all consumers. With Perez facing serious felony charges and potential significant penalties, the case serves as a warning about the consequences of attempting to defraud insurance companies.
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