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Georgia couple denied bond in terror insurance fraud case

Cynthia and Charles Gavett were arrested Monday and charged with insurance fraud.

ZEBULON, Georgia (CNN) -- A county magistrate judge denied bond Wednesday for a somber-looking Georgia couple held on insurance fraud charges for allegedly trying to cash in on a national tragedy.

Pike County Magistrate Priscilla Killingsworth said, however, she would allow the issue of bond to be discussed at a preliminary hearing and asked attorneys to tell her when they would be ready to present evidence and witnesses.

The attorneys for Charles and Cynthia Gavett of Concord, Georgia, told the judge their clients are not dangerous and would not flee if released.

Allen Adams and Charlie O'Neill did most of the talking for their clients, who wore traditional orange jail jumpsuits and rarely spoke, even to each other, during the 15- to 20-minute hearing.

VIDEO A Georgia couple allegedly filed a false insurance claim stemming from the World Trade Center attacks. CNN's Brian Cabell reports (November 29) Play video (QuickTime, Real or Windows Media)     LEGAL RESOURCES Latest Legal News Law Library FindLaw Consumer Center Select a topic Bankruptcy Discrimination Divorce Estate Planning Landlord-Tenant Personal Injury Taxes

The Pike County Sheriff's Department arrested the Gavetts Monday, charging them with filing fraudulent insurance claims to collect on a $200,000 mortgage insurance policy. Sheriff Jimmy Thomas said Gavett had reported to New York authorities and his insurance company that his wife was killed in the September 11 terrorist attacks in New York City.

Thomas said the Gavetts' insurance company telephoned his office November 10 to verify that Mrs. Gavett lived at the address given on Mr. Gavett's claim and to ask if they were known to authorities.

"It just so happened that I knew of the family," Thomas said. "We're a small county. We contacted some of the locals in the area and they verified that they had seen her since the 11th, and then at that point we notified both the New York police and the insurance company."

Concord, Georgia, is about 45 miles south of Atlanta.

Georgia Insurance Commissioner John Oxendine said both Thomas and the Gavetts' insurance company contacted his office early last week, prompting a state investigation.

Thomas said that Gavett filed a missing person report with the New York Police Department shortly after terrorists hijacked commercial airliners and flew them into the city's World Trade Center towers.

He claimed his wife "had a 9 a.m. appointment on September 11 with a financial services firm in the building," Thomas said.

On September 29, Gavett e-mailed Minnesota Life Insurance Co. to notify them of his claim, and followed up on October 2 with a phone call.

Charles Gavett claimed that his wife, Cynthia Gavett, above, had an appointment in the World Trade Center towers on September 11.

Oxendine said the Gavetts' 14-year-old daughter "signed an affidavit that indicated her mother was missing.

"But at this time we don't suspect that she had any criminal intent," the commissioner said. "We're not at this time impugning her in any way."

Oxendine said, however, that the local district attorney could file additional charges. A Pike County official would say only that authorities were "open" to filing other charges, but none were being considered at the moment.

The insurance fraud charges against the Gavetts are felony charges that carry up to 10 years in prison and a maximum $10,000 fine.