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American Morning

Georgia Couple Files Fraudulent Insurance Claim After September 11th Attacks

Aired November 29, 2001 - 09:15   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA ZAHN, CNN ANCHOR: We move on to the issue of more fallout from the September 11th attacks. A Georgia couple is behind bars this morning accused of trying to cash in on this national nightmare. They are charged with insurance fraud in connection with the September attacks on the World Trade Center. CNN's Brian Cabell has the story.

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BRIAN CABELL, CNN CORRESPONDENT: Charles and Cynthia Gavett seemed in no mood to talk as they took the long walk, their hands in cuffs, to magistrate's court in Zebulon, Georgia.

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UNIDENTIFIED FEMALE: Okay, you're both being charged with felony warrants.

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CABELL: The felony? Insurance fraud. Mr. Gavett allegedly filed a $200,000 claim on a policy after reporting that his wife had died in the World Trade Center attacks. The insurance company, suspicious after learning that no obituary for Mrs. Gavett had appeared in the local newspaper, called the sheriff.

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JIMMY THOMAS, SHERIFF, PIKE COUNTY, GEORGIA: They have children in the school system. They also participated in the community and it was easy to find out that she was alive and she was doing well.

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UNIDENTIFIED FEMALE: You have the right to be represented by an attorney. You have the right to a reasonable time to obtain an attorney prior --

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CABELL: The magistrate set no bond for them at the arraignment, officials say that's highly unusual in an insurance fraud case. Other charges may be pending against the Gavetts.

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JOHN OXENDINE, GEORGIA INSURANCE COMMISSIONER: The more we're digging, we're finding evidence that there were multiple claims. It's probably going to be hundreds of thousands of dollars in addition to the $200,000 that we initially arrested them on.

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CABELL: The Gavetts spoke hardly a word, nor did their attorneys, but New Yorkers, still recovering from a tragedy that took almost 4,000 lives, did have something to say about an alleged scam involving someone pretending to be dead.

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UNIDENTIFIED FEMALE: I think it's outrageous, I mean I think it's revolting.

UNIDENTIFIED MALE: I guess I just think it's amazing that someone can just lower themselves like that.

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CABELL: Georgia's insurance commissioner charges that the Gavetts also requested money from the Red Cross, asked for an urn of dirt from the World Trade Center, and got a letter of sympathy from Mayor Giuliani.

(on camera): If the Gavetts are convicted of insurance fraud, each of them could face up to ten years in prison with a $10,000 fine. Brian Cabell, CNN, Zebulon, Georgia.

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