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Oct 7
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This week was a busy one in the insurance fraud and scam business. If you know of any insurance related scams from this week or any other week please leave a comment. The more we are aware of potential scams the less likely we will be to fall prey to devious individuals.
- New York Auto Theft & Insurance Fraud Ring - At the guilty plea hearing, Insurance Fraud Prosecutor Greta Gooden Brown said that Czubek admitted that between Nov. 22, 2004 and Oct. 22, 2005, he was involved in a conspiracy to steal cars and accept owner initiated "give up" vehicles so that more than a dozen fraudulent insurance claims could be submitted. A "give up" occurs when the owner of a car voluntarily gives it to another so that a false theft claim can be submitted and the car can be chopped for parts or retagged with a new vehicle identification number and sold.
- $70,000 Senior Insurance Scam - The Ohio Department of Insurance announced that its investigation has led to the guilty plea of former insurance agent James Moneypenny of Seville, Ohio. Moneypenny, who pleaded guilty to insurance fraud, money laundering and securing writings by deception, defrauded an elderly couple of more than $70,000 in an annuities scam. His sentencing hearing is scheduled for November 10 in the Medina County Court of Common Pleas. The Department revoked Moneypenny's insurance agent license on November 2, 2005.
- CA Cease & Desist Order - Insurance Commissioner John Garamendi has issued a “cease and desist” order against Trip Assured Inc., a company offering trip cancellation insurance in California, but without a certificate of authority to sell insurance here. Additionally, the Tennessee-based company is the focus of numerous complaints, primarily by senior citizens and their families, over its refusal to pay claims.
- Alleged Contractor Fraud - Louisiana Attorney General Charles C. Foti, Jr., announced that his Special Agents arrested five individuals for theft of funds related to alleged contractor fraud in the New Orleans area following Hurricane Katrina.
- Guilty Of Safety Violations - A South Texas company whose bus exploded and killed 23 nursing home residents as they fled from Hurricane Rita has been convicted of failing to maintain its buses and follow inspection regulations, and conspiring to lie on drivers' logbooks.
- Insurance Company Officers Get 6 Years - A federal judge has sentenced two men to six years in prison for their roles in the failure of a Tulsa, Okla. insurance company. Besides prison terms for convictions on embezzlement, wire fraud and money laundering charges, U.S. District Judge Stephen Friot also ordered Wakon Iron Redcorn Jr., 47, and Bradley N. Frost, 36, on Oct. 4 to pay more than $1.7 million in restitution.
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