Insurance Fraud is not a Victimless Crime
Dec 1, 2012
Little Rock, AR (Law Firm Newswire) November 30, 2012 – Some do not think twice about ripping off an insurance company by filing a false claim. But insurance fraud is not a victimless crime.
There are some fraud and scam artists whose sole means of support is filing false claims with insurance companies to get money. Consider a relatively recent case where three people were arrested for defrauding insurance finance companies. The defendants, ranging in age from 60 to 64, were arrested as the result of a federal grand jury returning an indictment charging the three with mail and wire fraud, and aiding and abetting in the overall scheme to hand in fraudulent insurance premiums to insurance finance companies.
The basis of the scheme was to fraudulently obtain funds from finance companies who thought the money was to be given to insurance carriers named in the agreements submitted to them. The group ringleader used information from the other two partners in crime about their businesses, which allowed the head honcho to submit the agreements to finance companies and get loans.
“It was a relatively intricate scheme that netted the three over $4 million in fraudulent loans. The trio figured they were not harming anyone, as there were no victims, other than the finance companies. Contrary to what some think, insurance fraud is not a victimless crime. In fact, every company that has been defrauded of funds represents hundreds of customers who have also been ripped off, as their rates go up to cover losses like this one. It brings new meaning to the term, what goes around, comes around,” said Arkansas injury lawyer Mike Smith.
The three frontrunners for this scam were not the only people to face the music when the FBI caught up with them. Early this year, a bookkeeper who worked for the three pled guilty to conspiracy to defraud, and is waiting for sentencing. “A jail term for any of these perpetrators, if they are convicted, could range up to 20 years in a federal prison for every count of mail and wire fraud. Is insurance fraud worth the penalty? Likely not,” Smith said.
Learn more by contacting Arkansas personal injury lawyer Mike Smith at http://www.arkansaslawhelp.com.
425 W. Capitol Av., Suite 3700
Little Rock, AR 72201