The North Carolina Department of Insurance (NCDOI), in partnership with the Farm Bureau’s Special Investigations Unit, recently announced a fraud investigation that led to the arrest of a roofing professional on multiple felony charges.
According to an NC DOI press release, the Charlotte-based roofing project manager was arrested earlier this month after a two-month undercover investigation. Investigators set up a “bait house” in Wake County in order to attract contractors to inspect, price, and, in this case, capture any unlawfully actions when they believed they could generate work as part of an insurance claim.
During the sting, the roofer and a co-conspirator allegedly bent and damaged roof shingles intentionally and subsequently sought to attribute the damage to wind and hail in an attempt to submit a $30,000 fraudulent residential property insurance claim through North Carolina Farm Bureau.
NCDOI’s investigation reportedly involved engineering experts, advanced surveillance, and traditional investigative techniques to document alleged wrongdoing. As a result, the contractor now faces charges for insurance fraud, obtaining property by false pretenses, and conspiracy.
While this case involves an extreme fact pattern involving deliberate physical damage to induce an insurance claim, it highlights broader regulatory and criminal enforcement risks that licensed professionals should take seriously for a variety of reasons.
1. General contractors should be aware of fraudulent practices
Under North Carolina law, knowingly submitting false information or misrepresentations to secure insurance proceeds can trigger criminal and civil liability. Misrepresentations can occur by exaggerating damage, falsifying causation (e.g., attributing pre-existing conditions to a storm), or staging damage. The NCDOI has both regulatory authority and criminal investigative capacity to pursue such conduct.
2. The NCDOI is on alert for potential fraud
The use of bait properties by the Department of Insurance in fraud enforcement and collaboration with the insurance industry shows that regulators and insurers are willing to deploy sophisticated, proactive measures to identify abusive contracting practices. Illegal practices previously thought difficult to detect – like staging damage – are being targeted through new investigative tactics.
3. All licensed professionals should be vigilant to ensure compliance
Although roofers may be a primary focus due to the frequency of storm-related claims, the risks extend to other licensed professionals involved in property repairs and claims documentation, including:
- General contractors who assess structural damage or coordinate repair work;
- Home inspectors and adjusters who might be implicated if they knowingly or negligently misstate conditions;
- Subcontractors and consultants providing reports or estimates that support a claim.
Along with the potential for criminal charges, insurance fraud can result in civil penalties and increased damages, and license consequences including suspension or revocation.
4. Compliance practices for the vigilant contractors
Licensed professionals should adopt strict compliance protocols around insurance-related work, including:
- Document and photograph damage thoroughly and contemporaneously.
- Avoid affirmatively attributing causation unless demonstrated by objective evidence.
- Maintain clear, written scopes of work that reflect actual conditions.
- Decline participation in insurance claim submissions where misrepresentation may be implied.
Educating clients and your crews on their role in the claims process and referring homeowners to qualified adjusters or engineers when damage causation is uncertain can help mitigate risk.
The December 2025 sting operation and subsequent felony charges illustrate the serious legal exposure that roofers and other construction professionals face when insurance claims are involved. What may begin as an effort to secure business through aggressive tactics can quickly escalate into criminal exposure, civil damages and license consequences.
Contractors and licensed professionals should reassess internal compliance practices, ensure all representations tied to insurance claims are truthful and supported by objective evidence, and remain aware of the active enforcement environment by NCDOI and allied investigation units.
