The Region - News from Aug. 14, 1985

Four men have been charged in a fraud scheme in which a 43-foot yacht was deliberately sunk near Santa Catalina Island so they could collect $110,000 in insurance money, prosecutors said. Two of the defendants, Joseph Strauss, 57, and Raymond Davison, 44, both of Orange County, were investors in the motor yacht, which Davison allegedly sank on July 12, the district attorney’s office said. Lorne Creasey, 30, and Thomas Merrill, 44, both of Long Beach, were allegedly enlisted to strip the boat of its electronic gear and nautical hardware prior to its sinking. Strauss filed a claim with the Hartford Insurance Group for a $110,000 loss, but Long Beach police cracked the case before he could collect, prosecutors said. Strauss and Davison are charged with defrauding an insurance company, filing a fraudulent insurance claim and sinking a boat for fraudulent purposes, while Creasey and Merrill are charged with attempting to receive stolen property.