Monday, October 19th, 2026 — A former Donegal Insurance claims adjuster faces felony charges after Pennsylvania authorities alleged he used his position to orchestrate a fraudulent accident claim settlement totaling $949,639.54.

According to Pennsylvania Attorney General Dave Sunday's office, the Indiana resident was employed as a claims adjuster at Lancaster County-based Donegal Insurance during 2024 and 2025 when he allegedly manipulated an assigned accident claim to secure payment for a business he had established.

Investigators said the adjuster created a limited liability company that appeared to operate as a law firm representing an injured claimant. While handling the underlying accident claim, he allegedly inserted fraudulent medical records and fabricated notes documenting conversations with the purported injured party into Donegal's claims system.

Prosecutors believe the adjuster also authored a settlement demand letter that, together with the fraudulent medical documentation, resulted in Donegal issuing a payment of nearly $950,000 to the company he controlled.

The alleged scheme involved an insurance professional with direct responsibility for evaluating and documenting a claim. By controlling the information entered into the claim file, the adjuster allegedly created the supporting documentation for a substantial payment to his own business.

The case raises concerns for insurers about internal claims handling controls, particularly verification of claimant representation, the authenticity of medical documentation and oversight of large settlement payments. The allegations involve an employee's purported misuse of access to claims records rather than fraud initiated solely by an outside claimant.

Following a presentment by Pennsylvania's 55th Statewide Investigating Grand Jury, the adjuster and his business were charged with corrupt organizations, dealing in proceeds of unlawful activities, theft by deception, insurance fraud and forgery.

Authorities arrested the accused in Indiana in October, and he was awaiting extradition to Pennsylvania when the charges were announced Oct. 13. The Pennsylvania Attorney General's Insurance Fraud Section will prosecute the case.

All charges remain allegations, and the defendants are presumed innocent unless proven guilty.