Pulling the Rug out from Under a Scam

Investigators from the CDI arrested Ruth Ekong, 61, at her home in Palmdale, Calif., home on nine felony charges of insurance fraud, conspiracy, grand theft and perjury. Ekong was booked at the Lancaster Sheriff’s Station, and bail was set at $437,790.

An arrest warrant was also issued for Ekong’s husband, Lancaster cardiologist Dr. Enobong Ekong on four felony charges including insurance fraud. Dr. Ekong surrendered in Los Angeles Superior Court several days later, and his bail was set at $30,000. The Los Angeles District Attorney’s Office is prosecuting the case.

According to investigators, in June 2000, the Ekongs filed a claim with SAFECO Insurance for vandalism to the interior of their home. The value of the claim, originally for $570,000, was later reduced to $294,922. An investigation revealed that Ruth Ekong allegedly caused the damage. Investigators also found that both the Ekongs allegedly participated in the pursuit of the claim, knowing it was fraudulent.

During the investigation of the vandalism claim, a previous claim with SAFECO filed by Ruth Ekong in July 1999 was reviewed and found to be suspicious. In that claim, Ruth Ekong claimed a rug and tapestry purchased in 1975 were destroyed. SAFECO valued the loss of the rug and tapestry at $69,280. After receiving payment, Ruth Ekong hired an appraiser to value the rug and tapestry and later submitted appraisals listing the value of the items at $295,000. SAFECO subsequently settled the claim for an additional $165,690.

The current investigation of the past claim revealed the appraiser was Ruth Ekong’s sister, who, according to investigators, had no credentials to appraise such items. Ruth Ekong allegedly led SAFECO to believe someone had referred the “appraiser” and never disclosed the sister’s true relationship.