Man Sentenced for Quake Repair Scam

A former Allstate claims adjuster was sentenced Monday to two years, 10 months in federal prison following his conviction for tax evasion and embezzling more than $500,000 from his employer, federal prosecutors said.

Ronnie F. Eubanks, 51, of White Bear, Minn., worked for Allstate for a two-year period after the Northridge earthquake and approved earthquake repairs to damaged homes through a company called Nomad Construction, federal authorities said.

Allstate paid for repair work that Eubanks arranged with Nomad Construction. But the company did not make the repairs and billed Allstate at fraudulently inflated rates, said Assistant U.S. Atty. Gen. Gregory Weingart.

Weingart said that in return for his assistance, Eubanks received more than $275,000 in kickbacks from Nomad, money he used to purchase a golf tournament franchise, a Palm Springs country club membership and a part ownership in a San Luis Obispo restaurant.

Authorities said Eubanks failed to pay any federal tax returns between 1994 and 1996 when he owed $92,000. At the sentencing, U.S. District Court Judge Steven V. Wilson ordered Eubanks to pay those back taxes.