Former New Orleans Police Officer Indicted in Botched Art Insurance Scam

A former officer of the New Orleans Police Department (NOPD) has been indicted on charges of wire fraud, mail fraud, and four related counts for orchestrating a fraudulent art heist scheme. The indictment, announced by the United States Attorney’s Office in the Eastern District of Louisiana, details an elaborate plot aimed at securing a $128,500 insurance payout through falsified claims of stolen artwork.

The scam began on October 25, 2019, when the officer responded to a theft complaint at the home of a local event space owner. The homeowner reported the theft of cash, jewelry, and a leather jacket. During the investigation, the officer suggested that insurance companies often reimburse policyholders based on the appraised value of stolen items rather than their purchase price. He mentioned that artworks, in particular, could yield high insurance payouts. The officer even recounted his personal experience, claiming to have received a $5,000 insurance payout for a sword bought for $50, facilitated by a favorable appraisal.

Taking the officer’s advice, the homeowner filed a second police report a week later, this time claiming that ten paintings had also been stolen. The officer revisited the homeowner to document the supposed theft. To lend credibility to the fraudulent claim, the officer enlisted an appraiser from Las Vegas, known to him from his previous career as a lawyer in Nevada. The appraiser produced an exaggerated valuation of the paintings, ranging from $2,500 to $15,000 each, for a total of $128,500. This appraisal was then used to support the homeowner’s insurance claim.

The scheme began to unravel when the insurance company inquired about the appraiser’s credentials and how the appraisal was obtained. The homeowner failed to provide satisfactory answers, raising red flags. Further investigation revealed the appraiser had a prior conviction for grand theft in California, where he had secured a $40,000 loan against a Picasso drawing he did not own. Additionally, FBI raids on the homeowner’s properties in 2021 uncovered the supposedly stolen paintings, confirming the fraudulent nature of the claim.

During this period, the officer maintained frequent communication with the homeowner, discussing their compensation arrangement and the officer’s aspirations for career advancement within the NOPD. Court documents reveal the officer sought the homeowner’s influence with a high-ranking police official to secure better work shifts and a promotion.

The former NOPD officer now faces up to 75 years in prison and a maximum fine of $1.5 million if convicted. The homeowner has already pled guilty to one count of conspiring to commit wire fraud and is believed to be cooperating with federal authorities. The appraiser has also pled guilty to misprision of a felony, admitting he knew the paintings were of little value but still provided an inflated appraisal.

The case highlights the vulnerabilities in the insurance claims process and the lengths to which individuals might go to exploit these weaknesses. It also underscores ongoing issues within New Orleans, a city long plagued by corruption. The homeowner’s connections to local political figures and the broader implications of the investigation have drawn national attention, emphasizing the critical need for vigilance and integrity in law enforcement and insurance industries.