Man Busted Selling Fake Insurance Policies!

Insurance Fraud

Insurance Fraud

Police in Gwinnett County, GA have arrested a man who was allegedly selling fake insurance. Investigators state that John Kill, 63, of Peachtree Corners was selling fake insurance to a number of construction and trucking companies.

The state insurance commissioner suggests that there may be as 1000 businesses who have been caught by the fake insurance scam.

The fake insurance policies were being sold under the name “Appeal Insurance Agency”, a real company from the United Kingdom. Customers realized they had been duped when they contacted the insurance company headquarters to find they had no policy.

While many of the businesses caught by the scam are in the Atlanta area, many are interstate and across the country. Police are working through boxes of records to contact the affected businesses.

The amount of money involved was substantial with hundreds of thousands of dollars allegedly discovered stashed in various accounts.

Police urge businesses who are unsure about the status of their insurance policies to contact their provider as soon as possible.

NYC Disability Insurance Fraud $400 Million!

Disability Insurance Cheats

Disability Insurance Cheats

Many argue that disability insurance fraud has reached epidemic proportions in the United States. Well today, a few hundred disability insurance rorters have been busted in New York City and will no longer be rorting the system

Prosecutors in New York City have announced that as much as $400 million may be getting rorted from the social security disability insurance dating back to 1988.

Some of the rorters have stories that are hard to believe. One person claimed to have a debilitating neck injury but was filmed taking part in a karate instructional video, where he is seen jumping around acrobatically. That particular individual is accused of stealing nearly $500’000 from disability insurance over the past decade.

Others received a few hundred thousand dollars claiming to be too depressed to go outside until they were spotted in photographs deep sea fishing and riding jet skis.

In a revelation that will repulse many people – a number of the people busted for rorting from the insurance funds claimed 911 was the source of their psychological issues.

New York Police Commissioner Bill Bratton said: “As a New Yorker, as a U.S. citizen, I can only express disgust at the actions of the individuals involved in this scheme”

There were a number of ring leaders involved in the rorting and who instructed other people on how to trick physiological and psychiatric tests. The alleged ring leaders were police officers and even a former FBI agent.

Disability rorters cost the insurance industry and governments millions of dollars every year, and also lead to higher insurance premiums for everyone.

Flordia Insurance Fraudsters Caught!

Insurance Fraudsters Busted!

Insurance Fraudsters Busted!

Investigators in Florida have uncovered a complex insurance scam involving as many as 50 people on Thursday and have laid charges against 33. The highly complex scam involved a number medical professionals, clinic owners, massage therapists, chiropractors and recruiters who sought out people to play a role in the scams.

They staged car accidents and faked related injuries, with willing participants visiting medical professionals who had been paid off for a diagnosis of their injuries.

After a 3 year investigation, police moved in and arrested many of the individuals involved in staging the accidents and perpetrating the insurance fraud. Investigators estimate that the scam fleeced upward of $20 million from insurance companies.

William J. Maddalena, one of the FBI agents involved declared: “If you get upset about your car insurance premiums going up, this crime is one of the reasons why,” He continued: “Every time an insurance payout is made for a staged accident in Florida, we all feel the pain in the pocketbook.”

The arrests are part of a larger operation called “Operation Sledgehammer” which has seen the FBI and local authorities target insurance scammers in the Palm Beach, Broward and Miami areas. The scammers convicted have been ordered to repay $5 million so far and more convictions will undoubtedly be on their way.

The name for the operation comes from the fact that some of the scammers used sledgehammers to damage vehicles and make them look like they had been in an accident. The scam was highly complex because it involved people at every level including medical professionals who were prescribing fake treatment for fake patients. The recruiters found willing participants, paid them off and staged crashes around South Florida. Some of the charges include money laundering, staging financial transactions and accident fraud.

The scam has been running since as far back as 2006, netting a very large amount of cash in that time, and it used as many as 21 chiropractors to provide false injury statements. Some of the defendants have fled to Cuba to escaped prosecution.

The participants were trained by the recruiters and told which chiropractors to go to, how to file the police reports and how to file the insurance claims. The recruiters would then pay the participants, often using the funds in a separate money laundering scheme.

So if you are looking for one of the reasons why insurance premiums continue to claim, you can blame insurance scammers like the ones busted in Florida. Luckily for us the FBI and other authorities are on their trail!