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Insurance fraud persists in 2020 and beyond

On Behalf of | Dec 16, 2020 | Insurance Defense

Few are lamenting the end of 2020, a year like no other. For individuals and businesses victimized by insurance fraud, they too are likely looking for the “reset” that comes with the first of January.

The Coalition Against Insurance Fraud has looked back on the past 12 months, creating their own hall of shame composed of fraudsters/inductees that include:

  • A New York City resident recruited the homeless to orchestrate falls on business property throughout the area. Some ended up having surgery for what turned out to be non-existent injuries. In the end, the scam artist collected $31.7 million, not counting “salaries,” before his arrest and subsequent conviction of federal fraud charges. He is currently serving five years behind bars.
  • A man claiming to be a US Navy SEAL alleged that he suffered the psychological effects of war, specifically wounds from a skirmish in Beirut while serving his country. One problem. He never enlisted in any branch of the military. The fictional account generated $300,000 in federal disability benefits. He has yet to be sentenced in federal court.
  • A New Hampshire woman claimed that she and her children were sickened by tainted food purchased in restaurants and grocery stores throughout the state. Her fake filing was close to 400,000 dollars, a scam that included identity theft against her own, not-so-sick children. She is serving a state sentence of 18 months.
  • A Missouri woman who owned a care facility billed Medicaid more than $100,000 for a resident who died under her “care.” In reality, she caused the death of the disabled man through starvation and is now serving 17 ½ years in federal prison.

Collectively, acts of insurance fraud result in economic losses in the billions that often lead to premium increases. While the above crimes were discovered, many go on without notice, putting an unnecessary financial burden on insurers and their customers.