Springdale Business Sued Over Alleged Insurance Fraud Involving Arson (5News Online)

Springdale Business Sued Over Alleged Insurance Fraud Involving Arson

Tuesday, May 14th, 2024 Fraud Insurance Industry Litigation Property

In Springdale, Arkansas, a business is under legal scrutiny after its own insurance provider filed a lawsuit against it for purportedly burning down its premises to fraudulently claim $700,000. The incident occurred on the evening of April 8, 2023, at a property owned by L&E Consulting LLC, which operates as Elite Equipment. The Springdale Fire Department responded to the fire, with additional support from the Fayetteville Fire Department, managing to extinguish the flames by midnight. Despite their efforts, the building suffered severe damage.

The lawsuit alleges that Tommy Goforth, the sole operator of L&E Consulting, orchestrated the arson to illicitly gain from the insurance payout provided by National Trust Insurance Company of Florida. The claim not only accuses Goforth of initiating the fire but also of potentially directing others to carry out the act. The insurance company is pursuing a trial by jury, seeking repayment of the $700,000 paid out, alongside court fees, should they prove the fire was intentionally set. This case highlights ongoing concerns about insurance fraud and the lengths to which individuals might go to exploit their policies.

Claims Pages Staff Writers are dedicated professionals covering a broad spectrum of insurance topics, including auto, catastrophe, education & training, fraud, legislation, liability, life & health, litigation, property, risk management, technology, underwriting, and workers' compensation. With over 25 years of distribution, our publication brings you accurate and timely information to keep you informed and ahead in the claims industry.

External References & Further Reading

Mid-America Catastrophe ServicesHancock Claims Consultants LLCGRIP(Globe Roof Inspection Program)

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