Garland City Employee Among 3 Accused...

Garland City Employee Among 3 Accused Of Insurance Fraud

There are 244 comments on the NBC 5i Dallas/Fort Worth story from Mar 26, 2008, titled Garland City Employee Among 3 Accused Of Insurance Fraud. In it, NBC 5i Dallas/Fort Worth reports that:

Garland police, along with the City of Garland Internal Audit Department and city management, said they have uncovered a scheme of insurance fraud within the city's Risk Management Group involving several ...

Join the discussion below, or Read more at NBC 5i Dallas/Fort Worth.

Agree with Local Dude

Richardson, TX

#189 May 31, 2008
In case you do not get the Garland News (Thursday, May 29, 2008):

Sharon Stailey, wife of Duane Stailey, has also been arrested in this insurance fraud scheme. Sounds like there is enough evidence now that somehow Duane isn't as innocent as some would like to think. Oh....and by the way.....the losses are now estimated to be close to $2 million. WOW !!!
UPDATE

United States

#190 Jun 1, 2008
Very sad --- I think that Duane and Sharon have a very young daughter.
story from Garland news

Berkeley, IL

#191 Jun 2, 2008
Fourth suspect arrested in city insurance fraud case

On March 26, Garland police arrested long-time city employee Patsy Leathers, 59, as well as Jerry Don Diviney, 66, and Duane Milford Stailey, 41, for their involvement in an insurance fraud scheme.

Diviney and Stailey are not city employees, and have no known connection to the city, other than Patsy Leathers.

Garland police have arrested a fourth suspect, Sharon Stailey, the wife of Duane Milford Stailey. All four have been charged with engaging in organized criminal activity, a first degree felony. If convicted, they could be sentenced up to 99 years in prison and be fined up to $10,000.

Leathers worked in the city's Risk Management Department, handling claims filed against the city. The city has been self-insured for years [ed.: for certain types of claims], electing to pay legitimate liability claims themselves rather than purchasing coverage from an insurance company. Leather's processed the claims for the city, allowing fraudulent claims to be paid along with the legitimate ones.

The city does have insurance covering employee fraud, but how much of the loss will be covered by their insurer is not clear yet. Whether the city had adequate safeguards in place to catch wrongdoing in the Risk Management Department may play a part in determining how much the city will recover from their insurance company.

When first discovered, the city believed the loss was in the $100,000 range, but estimates by a person close to the investigation, who could not go on record, said the loss would probably be closer to $2 million.

Since the scheme had been ongoing much longer than originally thought, the statute of limitations may keep prosecutors from pursing every fraudulent act committed by the foursome.

The city has asked the FBI to handle the investigation. Mayor Ron Jones issued a press release on May 23, which said, "Given the nature and scope of the crimes, the Garland Police Department decided to ask for the assistance of the FBI and the resources that agency can provide.
wondering

Dallas, TX

#192 Jun 10, 2008
any news on this situation ----
Shocked

Garland, TX

#193 Jun 13, 2008
I agree with so many comments about Patsy Leathers being a kind and good person. I know Patsy since high school and yes her husband is no longer with the PD in Garland but did work (or still does) for the DA's office in Dallas but HE has not been thought guilty of ANYTHING!! Leave the guy out of it. I am so surprised that Pasty would have done this. Very Surprised. Good luck Patsy and family.
resident of garland

Keller, TX

#194 Jun 19, 2008
The comments made by Doug Athas are nothing more than his usual attempts at grandstanding and his ever present need to publicly interject himself into this issue. It's called public posturing - or another form of a 'sound bit', and as you can see, even happens at the local level. His ultimate goal is to be able to reflect back on his 'tough stance' when he eventually makes a run for mayor of Garland. And to most of us - it's both humorous and disgusting that he makes the comments he does.
Athas Disgusting

United States

#195 Jun 19, 2008
Nicely stated "resident of garland" !! Athas is just another run of the mill small time Garland politican. Your reference to to "public posturing" is 100% true. You would think that a city the size of Garland could attract a higher class of individual to serve their city. If Athas wants to keep the media spotlight on this unfortunate situation, I suggest he take a look closer to home .. starting with the city's audit department, city manager and yes the city council whose jobs it is to prevent these types of situations from occuring. If this has been ongoing for years, the audit dept and city manager should be held responsible as well as the council for failing to have proper procedures in place to prevent fraud.
Missdaisy

Austin, TX

#196 Jun 22, 2008
story from Garland news wrote:
Fourth suspect arrested in city insurance fraud case
On March 26, Garland police arrested long-time city employee Patsy Leathers, 59, as well as Jerry Don Diviney, 66, and Duane Milford Stailey, 41, for their involvement in an insurance fraud scheme.
Diviney and Stailey are not city employees, and have no known connection to the city, other than Patsy Leathers.
Garland police have arrested a fourth suspect, Sharon Stailey, the wife of Duane Milford Stailey. All four have been charged with engaging in organized criminal activity, a first degree felony. If convicted, they could be sentenced up to 99 years in prison and be fined up to $10,000.
Leathers worked in the city's Risk Management Department, handling claims filed against the city. The city has been self-insured for years [ed.: for certain types of claims],
oss was in the $100,000 range, but estimates by a person close to the investigation, who could not go on record, said the loss would probably be closer to $2 million.
Since the scheme had been ongoing much longer than originally thought, the statute of limitations may keep prosecutors from pursing every fraudulent act committed by the foursome.
The city has asked the FBI to handle the investigation. Mayor Ron Jones issued a press release on May 23, which said, "Given the nature and scope of the crimes, the Garland Police Department decided to ask for the assistance of the FBI and the resources that agency can provide.
I sincerely hope the new mayor will look into what measures of security were violated that allowed this to happen. A complete investigation is in order to find out how many more people should lose their job for allowing this to happen. A city the size of Garland should have had a careful audit of these types of claims. Was this something that was caught right of way ?
Flabbergasted

Plano, TX

#197 Jun 29, 2008
Agree with Local Dude wrote:
In case you do not get the Garland News (Thursday, May 29, 2008):
Sharon Stailey, wife of Duane Stailey, has also been arrested in this insurance fraud scheme. Sounds like there is enough evidence now that somehow Duane isn't as innocent as some would like to think. Oh....and by the way.....the losses are now estimated to be close to $2 million. WOW !!!
I am amazed and flabbergasted at the way everyone has lost sight of the original story. Summer sorry about your grief but be glad that he left when he did.

As for the Leathers' family.....Those people have been living high on the hog for many years. We just thought, "DANG the City of Garland must pay well!!" Have you seen the stuff they have? The trips they have taken? Did you also know that her daughter works for the city too along with her live in boyfriend...And that they all live in the same NEW HOUSE?

Somebody should have been noticing all this money coming in!!! Congrats to the City of Garland for finally discovering this!!
Martia

Austin, TX

#198 Jun 30, 2008
Flabbergasted wrote:
<quoted text>
I am amazed and flabbergasted at the way everyone has lost sight of the original story. Summer sorry about your grief but be glad that he left when he did. Did you also know that her daughter works for the city too along with her live in boyfriend...And that they all live in the same NEW HOUSE?
Somebody should have been noticing all this money coming in!!! Congrats to the City of Garland for finally discovering this!!
Oh dang! A new house..... well no wonder it is very hard to get hired with the City of Garland.

I've applied for jobs when they got posted. Now I have worked for several yrs in the telecom corridor and have skills, and once I got an interview with them. I know some others that have applied too. I guess you just have to KNOW someone to get hired.

You Jealous

United States

#199 Jun 30, 2008
Flabbergasted, your comments sound a little like sour grapes .. or could it just be plain old jealousy?? Just because someone has a NEW house, takes a vacation and buys 'stuff' as you call it, does not automatically mean they are guilty of a crime. Most of us work to achieve the "American Dream" which normally includes all these things !! If there are 4 working adults sharing expenses, I would think that their combined incomes would more than pay for a new home and vacations along with whatever 'stuff' they wished to purchase.
What does the daughter working for the City have to do with the mother's alledged crime ?? They did not work in the same department and their jobs were not related. Evidently, you are not up to date on the City of Garland's hiring practices. If you were, you would know that they employ "hundreds" of relatives and always have. As a matter of fact, the wife of City Manager, Bill Dollar, worked for the city for years and still may. Also, your "information" regarding the boyfriend is outdated as he works for the City of PLANO.
Miss DAISY

Austin, TX

#200 Jul 1, 2008
You Jealous wrote:
Flabbergasted, your comments sound a little like sour grapes .. or could it just be plain old jealousy?? Just because someone has a NEW house, takes a vacation and buys 'stuff' as you call it, does not automatically mean they are guilty of a crime. Most of us work to achieve the "American Dream" which normally includes all these things !!
What does the daughter working for the City have to do with the mother's alledged crime ?? They did not work in the same department and their jobs were not related. Evidently, you are not up to date on the City of Garland's hiring practices. If you were, you would know that they employ "hundreds" of relatives and always have. As a matter of fact, the wife of City Manager, Bill Dollar, worked for the city for years and still may. Also, your "information" regarding the boyfriend is outdated as he works for the City of PLANO.
Good jobs are hard to find, and there used to be a lot of them in Plano and Garland, so I for one feel they hire mainly friends and relatives too much. Taxpaying citizens of Garland are all mad and upset at these people who did this, and at the City of Garland for allowing it to happen.
wondering

Arlington, TX

#201 Jul 1, 2008
When will this case go to court? Are there any updates on this situation? What is Patsy Leathers doing now?
GARLAND CITIZEN

Austin, TX

#202 Jul 15, 2008
MISS DAISY..YOU DONT KNOW WHO THEY HIRE! THEY DO LOOK AT GOOD EMPLOYEES AND THINK THAT OTHER FAMILY MEMBERS COULD WORK OUT AS GREAT TOO.
GARLAND CITIZEN

Austin, TX

#203 Jul 15, 2008
BUT OF COURSE EVERYONE SHOULD BE UPSET THAT THE MONEY WAS TAKEN AND IT HURTS EVERYONES POCKETBOOK IN GARLAND INCLUDING EMPLOYEES.
Martia

Dallas, TX

#204 Jul 15, 2008
GARLAND CITIZEN wrote:
MISS DAISY..YOU DONT KNOW WHO THEY HIRE! THEY DO LOOK AT GOOD EMPLOYEES AND THINK THAT OTHER FAMILY MEMBERS COULD WORK OUT AS GREAT TOO.
Don't yell at Ms daisy..... she knows what she is talking about.
I know lots of people with good work history, when they are on layoff from companies in this area, they will apply at the CITY of GARLAND and are never hired. This has been going on since the 80's.
Dragnet

Fort Worth, TX

#205 Jul 22, 2008
Does anyone know anything knew about this story? New = has the grand jury convened? If so, what was the outcome? If not, why not? Have any of the parties been interviewed by the press (yeah ... I know ... legal counsel would probably rather spontaneously combust but -- hey -- you never know). Have the 3 "unnamed City sources close to the investigation" given away any new forbidden tidbits of info?

Inquiring minds want to know ...
GPD

Paris, TX

#206 Jul 23, 2008
The investigation is still going forward. Several people are being looked at and it has been a slow process due to the wide scope of "possible" involvement of others. Rumors and speculation will not help nor solve this effort. Any information concerning this case may be helpful. Please contact the City of Garland Police Dept. if you believe you may know something that is relevant.
One of His Ex-Wives

United States

#207 Dec 4, 2008
friend ladonia texas wrote:
I am a close personal friend of the stailey's & have seen everything I am telling you. First of all Duane & his family are good people. He does get behind on child support & always gets it caught up when they file income tax & they took his part of the sale of his mother's house to pay it. All of the Stailey family Duane, his brother, their mother & the deceased sister's daughters had to sign papers to sale the mother's house & the money was split between all because the dad never had a will. The house was falling down & should have been condemned years ago so everyone should be glad she got out of their. She is in a nice apartment complex for the elderly nearby & Duane's brother handles all of her finances. Duane has sent presnts to his child that have been returned. I guess they were not good enough to suit her & her mother. Nobody abandonded Summer her mother just got waht she wanted all along. Duane would pick Summer up for the weekend & after she got home Marla would call him or his wife (I have listened on the other phone)just to cause trouble.So before you go slinging alot of B.S. around know the facts & the truth. This has turned into nothing but bashing of Duane. The Stailey's are now & have always been good people.
I was married to Stailey and what Summer says is true. I never knew Marla to be anything but kind to me...but then I loved her child-the most beautiful little girl I have ever seen. She was the only thing that kept me in that marriage for as long as I stayed. Her father was so immature and jealous of her. She is right he was selfish among other things. He terrorized me with guns and threats. He was finally removed from my home by police officers. It does not sound like he has changed at all. As for his family they were wonderful,I adored his family especially his sister and his nieces. I do believe he emotionally abused Summer. He was jealous of his own daughter-she was everything he was not...beautiful, smart and loving...
Blast from the past

Wylie, TX

#208 Jan 8, 2009
Shocked wrote:
I agree with so many comments about Patsy Leathers being a kind and good person. I know Patsy since high school and yes her husband is no longer with the PD in Garland but did work (or still does) for the DA's office in Dallas but HE has not been thought guilty of ANYTHING!! Leave the guy out of it. I am so surprised that Pasty would have done this. Very Surprised. Good luck Patsy and family.
Leave the guy out of it?????? These people are not stupid. He may have not done the actual crime but he sure was enjoying the Mother Load right along with his wife. He was in LAW ENFORCEMENT for heavens sake. I'd say he was just as deep in the mud.

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