Second suspect in Kingsport heat pump warranty scheme sentenced


The second defendant in a heat pump warranty fraud case based in Kingsport, Tennessee was sentenced Wednesday in U.S. District Court in Greeneville.

Jimmy Allen Hulse will serve nearly two years in jail for his role in the scheme with Randy Gerald Harkleroad. The two men submitted false claims for heat pump replacement parts and other materials with a Texas-based warranty company and then pocketed the proceeds, according to court information.

The fraud that collected more than $490,000 from July 2013 to June 2015 was run through Harkleroad's Point Blank Heating and Air business and at a heat pump distribution business called East Coast Metal Distributors based in Blountville, the documents said.

Harkleroad was sentenced to a year in prison earlier this week. Both men must pay more than $327,000 in restitution as part of their verdict.

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