Fraudsters Fight Over Ownership of the Subject of Their Fraud
Post number 5308
See the full video at https://rumble.com/v77i5vq-there-is-no-honor-among-thieves.html and at https://youtu.be/PE7STWjFnLI
Convicted Fraudsters Try to Cheat Each Other
After failing to defraud insurers about the loss of a diamond ring the two admitted fraudsters sought possession of the seized ring which was neither lost nor stolen but was seized by the state.
In State Of North Carolina v. Kevin Ray Reece and Debra Lee Goldman, No. COA25-569, Court of Appeals of North Carolina (March 18, 2026) two fraudsters disputed the ownership of a platinum-banded diamond ring seized during a criminal investigation as the subject of Insurance Fraud.
FACTUAL BACKGROUND
Kevin Ray Reece pleaded guilty to two counts of felony obstruction of justice related to the ring and requested its return under N.C. G.S. § 15-11.1(a). Debra Lee Goldman, who also pleaded guilty to insurance fraud and obstruction of justice involving the same ring, sought its release and claimed ownership.
Both parties agreed Goldman was the original owner, having received the ring from her ex-husband in 1999. Reece asserted he purchased the ring from Goldman in February 2018 for $17,000 but lacked any documentary proof of the transaction.
The trial court held an evidentiary hearing, considering witness testimony and various documents, including accountant notes, affidavits, and law enforcement reports. Ultimately, the trial court found Goldman to be the rightful owner and denied Reece’s subsequent Motion for Appropriate Relief, prompting appeal.
The trial court determined the written evidence was not satisfactory to establish ownership, and there being no further evidence to establish it, determined Goldman was the rightful owner of the diamond ring. The trial court received conflicting evidence, such as the loan Reece claimed he obtained from his friend, Jeff Hudspeth, who told SBI he did not recall giving a $9,000 loan to Reece, and the evidence Reece attempted to manipulate a person named Slusher into saying he witnessed a cash transaction between Reece and Goldman. Goldman’s testimony was equally conflicting and questionable, such as her assertion that Wall fabricated testimony to cover Reece and protect herself.
LEGAL ISSUES
The case involves a statute, N.C. G.S. § 15-11.1(a), which governs the return of seized personal property. Both Reece and Goldman sought release of the diamond ring. The trial court was tasked with determining rightful ownership based on the evidence presented at the evidentiary hearing.
ANALYSIS
The trial court focused on the absence of documentary evidence supporting Reece’s alleged purchase. While accountant notes referenced a sale, no formal receipt, bill of sale, or corroborating communications were produced. The court weighed testimony from Reece, Goldman, and other witnesses, alongside affidavits and investigative reports. The parties’ agreement on Goldman’s original ownership and the lack of credible proof of transfer to Reece were significant factors.
DISCUSSION
The trial court found the evidence insufficient to support Reece’s claim of ownership, concluding Goldman retained title to the ring. Reece’s inability to produce concrete documentation or third-party confirmation of the sale undermined his position.
The court’s findings were affirmed on appeal, emphasizing the importance of objective evidence in resolving property disputes arising from criminal proceedings.
ZALMA OPINION
Two criminals admitted that they used the seized diamond ring as part of an insurance fraud scheme and pleaded guilty to various crimes related to the scheme. The state seized the ring as part of its investigation of the insurance fraud scheme and after pleading guilty both criminals claimed ownership of the ring. The court took time, heard testimony, and resolved the dispute giving one of the fraudsters the right to ownership of the ring. Neither should have received the ring, it should have been sold to provide restitution to the insurer that investigated the fraudulent claim.
(c) 2026 Barry Zalma & ClaimSchool, Inc.
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