PG County schools CFO resigns amid insurance fraud charges

School system orders external, independent audit to review its books, after Baltimore Sun report

(Handout photo )
September 22, 2014|By Doug Donovan and Colin Campbell | The Baltimore Sun

The chief financial officer of Prince George's County public schools and his wife resigned Monday, after the Maryland Insurance Administration found that the couple committed fraud on their personal insurance.

The school system is also ordering "external independent auditors to confirm there are no improprieties" relating to its $1.8 million budget, according to a statement issued by board chairman Segun Eubanks and schools chief executive Kevin Maxwell.

The Baltimore Sun informed school officials Friday of the insurance agency's findings that chief financial officer Colby White, and his wife, Keisha White, an auditor for the schools, knowingly submitted false information to an insurance company last year in an attempt to receive payment for a lost diamond ring that another insurer had covered six months earlier.

The couple did not respond to multiple requests for comment.

Erie Insurance, which covered the couple's jewelry for up to $3,000 per item under its homeowner's policy, received a claim for a lost "1.5 carat LEO diamond" ring valued at $12,999 in September. Colby White told Erie that the ring was not covered under another policy, but the company found that, four months earlier, he had been paid $16,313 by Travelers Indemnity Insurance after a filing a claim on the same ring, according to the agency.

The pair was ordered to pay $6,000 in civil fines, after they "knowingly violated" Maryland insurance law by filing two claims for the same loss, according to an Aug. 13 order released last week and obtained by The Sun.

Prince George's County is the state's second-largest school system, and Colby White was appointed in June.

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