This narrative account of E.A. Renfroe’s misconduct and basis of liability is taken directly from the RICO statement amended and submitted by Provost Umphrey – and represents only one side of the legal argument detailed in Part 1 of the series.
Renfroe participated in the day-to-day adjustment of claims and assisted and counseled with Lecky King and State Farm in furtherance of the scheme. Renfroe adjusted a number of the named Plaintiffs’ claims according to the purpose of the scheme and to effectuate a coverage denial based on the policy exclusion for water damage, as well as to create a biased record for later coerced settlements or litigation proceedings.
In adjusting claims pursuant to Lecky King and State Farm’s directives and the mutually agreed upon Enterprise plan, Renfroe ordered contrived engineering inspections and, as the “client” of Forensic and recipient/addressee of the reports, Renfroe knowingly utilized the false reports in divesting the Plaintiffs of coverage benefits through informal settlement negotiations, or as part of the Insurance Commissioner’s mediation program.
With the knowledge and complicity of Gene and Jana Renfroe, Renfroe adjusters were trained to attribute losses to water damage and use contrived engineering reports to create a basis for denial of wind claims. Renfroe adjusters were trained to conduct staged mediations wherein knowledge of the contrived engineering reports was concealed from Plaintiffs or other policyholders victimized by the inspection scheme.
In addition to the above activities, E.A. Renfroe & Company, Inc.’s misconduct and basis of liability also consisted of: pressuring Plaintiffs and other State Farm policyholders to settle claims for fractional values, concealing sham inspections and the existence of altered, fabricated and contrived inspection reports.
Some of the Plaintiffs, such as Glenda Shows, and other State Farm policyholders, were personally contacted and/or visited by Renfroe adjusters and employees (such as Philip Davis). During these communications and visits, Renfroe followed the Enterprise’s understood “script” and referenced and showed contrived information, while concealing contrary information (such as eyewitness accounts or inspection reports containing compensable wind findings). Renfroe, like State Farm, also participated(s) in all four Phases of the Enterprise’s racketeering activity.
From the fall of 2005 through part of 2006, as the adjusting firm, Renfroe ordered double reports, received dinated – through many interstate mailings, emails and phone calls – with State Farm and Forensic to ensure that a “record” was being created that was favorable to State Farm and the Enterprise and adverse to the policyholders. From the fall of 2005 until present, Renfroe has never disclosed the existence of double reports, the substance of policyholder-favorable reports, and the spoliation of evidence and the destruction of records that occurred.
Renfroe’s fraudulent concealment and silent allegiance to the Enterprise has now gone on for more than two years, and will likely continue indefinitely into the future. Against a backdrop of deception and concealment, Renfroe and its agents pressured and coerced Plaintiffs and other policyholders to settle for fractional amounts. As the adjusting firm and central participant in the Enterprise, Renfroe participated in and/or had knowledge of State Farm’s and Forensic’s destruction of evidence. In particular, Renfroe received and is aware of many double reports, but continues to obstruct justice and conceal their existence, along with the communications surrounding such reports and the larger, ongoing scheme to defraud. Renfroe’s own employees have admitted that they participated in fraud against State Farm policyholders.
While Renfroe employees such as Philip Davis, the Rigsbys, and others conduct and coordinate business as well as predicate acts for the Enterprise, such business and acts are performed with the knowledge, approval, and direction of directors and officials with Renfroe.
As discussed herein and in the Amended Complaint, Renfroe’s regular way of doing business involves assisting State Farm and any affiliated enterprises to minimize payouts, even when illegal or improper. During the Enterprise’s operations, which are ongoing, Mr. Davis, the Rigsbys, and the other employees discussed in the Amended Complaint informed (and inform) their directors and obtained (and obtain) ongoing instructions from such directors. Renfroe is a central figure and active perpetrator of the Enterprise’s conduct.
Gene Renfroe and Jana Renfroe, individually, as agents of and d/b/a E.A. Renfroe & Company, Inc. Gene Renfroe and Jana Renfroe participated in the day-to-day adjustment of claims and assisted and conspired with Lecky King and State Farm, inter alia, in furtherance of the scheme.
Gene Renfroe and Jana Renfroe adjusted a number of the named Plaintiffs’ claims according to the purpose of the scheme and to effectuate a coverage denial based on the policy exclusion for water damage. In adjusting claims pursuant to Lecky King and State Farm’s directives, Gene Renfroe and Jana Renfroe ordered engineering inspections pursuant to the inspections scheme and, as the “client” of Forensic and recipient of the reports, Gene Renfroe and Jana Renfroe utilized the reports in divesting the Plaintiffs of coverage benefits through informal settlement negotiations, or as part of the Insurance Commissioner’s mediation program.
With the knowledge and complicity of Gene and Jana Renfroe, Renfroe adjusters were trained to attribute losses to water damage and use contrived engineering reports to create a basis for denial of wind claims. Gene Renfroe and Jana Renfroe trained Renfroe adjusters to conduct staged mediations wherein knowledge of the contrived engineering reports was concealed from Plaintiffs or other policyholders subjected to the inspection scheme.
In addition to the above activities, Gene Renfroe and Jana Renfroe’s (individually and as agents of and d/b/a E.A. Renfroe & Company, Inc.) misconduct and basis of liability consisted of: (a) articipating in, and aiding and abetting in the procurement of sham engineering inspections and altered, fabricated and contrived inspection reports for the purpose of aiding and abetting Forensic Engineering, Bob Kochan and State Farm in defeating full value payment of Plaintiffs’ insured hurricane damage claims; (b) during formal mediations sponsored by the Mississippi Insurance Commissioner, and while actively attempting to settle Plaintiffs’ insured hurricane damage claims for a fractional value, concealing sham inspections and the existence of altered, fabricated and contrived inspection reports.