Insurer sues over embezzlement

Tuesday, Feb. 23, 1999 | 10:30 a.m.

Great American Insurance Co. insured UMC against employee theft in 1997, when a UMC employee and two accomplices stole the money, states a lawsuit filed in state District Court. Great American is suing the former employee, Richard Kemple, his wife, Melanie Arriaga, and a friend, Keith Rodriguez, to recover $52,000, which represents the amount embezzled minus UMC's $25,000 deductable.

According to the suit, Kemple's duties at UMC included researching overpayments on patient accounts and issuing refunds. Between March and November, 1997, Kemple improperly issued $69,600 in refund checks to himself, Arriaga and Rodriguez, alleges the suit. Two more checks totalling $7,400 were issued to the correct payee but were endorsed by Rodriguez and deposited in his account, states the suit.

The thefts were reported to police, and Kemple was convicted in July, 1998, states the suit.

Attorney Erven T. Nelson, representing Great American, said the company does not know where the defendants are, but hopes to find them.