Guilty plea earns Cates probation in fraud case

Historic City News has learned that 43 year-old Scott Inman Cates, Vice President of Operations for Lee and Cates Glass, entered a guilty plea yesterday morning; admitting that he was involved in conducting an over-billing scheme that resulted in over 1,300 fraudulent insurance claims.

Although customers of the St. Augustine location of Lee and Cates Glass on Anastasia Boulevard were not identified as victims of the over-billing scheme, Florida’s Chief Financial Officer Alex Sink said, “Our insurance fraud investigators are committed to cracking down on those who attempt to take advantage of Floridians. Fraud doesn’t just hurt the insurance companies – it inflicts real financial pain on families, businesses and communities.”

As part of the plea on the first-degree felony charges of scheming to defraud, conducting or participating in an enterprise through a pattern of racketeering activity and three counts of conspiracy to commit fraud, Cates was sentenced to three years probation — the first of which he will serve under house arrest.

Cates was ordered to pay $20,000 to the Department of Financial Services and $5,000 to the state attorney’s office for court costs. According to Lee and Cates President, Tom Lee, the company has paid restitution to the families affected.

In all, ten employees of Lee and Cates Glass were arrested beginning in April 2009 after reports surfaced that the company was billing insurance companies for expensive dealer windshields but installing a cheaper substitute. Cates was arrested in August 2009 but has been free on bond since posting $7,509 cash to guarantee his appearance in court.