Man arrested, charged with insurance fraud

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By The Staff

A Liberty man has been arrested in Campbellsville and charged with insurance fraud and aiding and abetting, following an FBI investigation.

According to David Beyer, a spokesman for the Federal Bureau of Investigation, Robert E. Petty, 52, was arrested Thursday, July 2 as he was leaving a Tae Kwon Do class at a downtown Campbellsville business.

Kentucky State Police officers aided in the arrest.

The Central Kentucky News-Journal had attempted to report the details of the arrest immediately after the incident took place, but calls to the FBI's Louisville office were not returned until last Thursday.

Petty was indicted by a federal grand jury on June 17, but that indictment was sealed until his arrest.

According to the indictment, in March 2004, Petty allegedly conspired with two unnamed individuals to set fire to a house in Casey County in order to collect money on the resulting claim filed with the insurance carrier, Kentucky Growers Insurance Co. As a result of the claim, the insurance company issued a check for $107,141.36, sending the check through the mail.

Beyer said no other arrests are pending.

If convicted, Petty could face up to 20 years in prison, a $250,000 fine and supervised release for three years.

Petty is scheduled for a pre-trial conference on July 29 in Bowling Green.

- An indictment is a legal accusation only. It does not establish guilt.