Articles about insurance fraud

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Neighborhood blows up in botched insurance arson
January 17, 2017
Ignited home’s natural gas line, burning next-door neighbors alive imageDid an arson fire or drone strike wreck the home in a tree-lined Indianapolis neighborhood? Hard to tell the difference. Bob Leonard helped open a natural gas line inside the home. He wanted to trigger an arson blaze for ...

Epic crash ring braked after $279-million whiplash spree
January 17, 2017
Hundreds of crashes staged for fake whiplash insurance claims imageMichael Danilovich viewed auto insurers as his personal piñatas. The New York man staged hundreds car crashes. He helped mastermind the largest no-fault looting of insurers from setup car wrecks in U.S. history.  It was a behemoth $279-million binge of ...

Lawless libido traps cheater in partner-swap comp romp
January 17, 2017
Prison guard shot at swingers club, lied was work injury imageJohn Alfonzo Smiley turned a night of sex frolicking into a dodgy workers-compensation claim. Then fraud investigators, well, exposed the prison guard’s X-rated exploits and sent him to jail for insurance fraud. Smiley was shot and paralyzed from the ...

Oh deer! Mob associate uses deer parts to stage car wrecks
January 17, 2017
Claimed cars collided with deer in bloody $5-million insurance scam image“I live my life to cheat insurance companies. My high every day is to cheat insurance companies.” So went the mantra of body-shop owner and Philadelphia mob associate Ronald Galati Sr.  Bloody deer parts and dozens of setup car ...

Samaritan scammer shotguns legs to steal disability insurance
January 17, 2017
Said ambushed when helping stranded pregnant motorist imageShannon Egeland stopped to help a pregnant woman stranded on a roadside late one summer night near Caldwell, Idaho. It was an ambush. Someone snuck up and shotgunned him, shattering his legs and forcing surgeons to amputate his left foot. Or so ...

Dad murders infant for $750,000 of life-insurance money
January 17, 2017
Sought policy when child born, shook helpless infant to death imageMoussa Sissoko seemed to care deeply about his infant boy, even giving up college to share parenting in suburban Washington, D.C. Sissoko cared so much that he bought a $750,000 life-insurance policy on Shane — and murdered him the ...

Bedridden girl starves to death while nurse shops
January 17, 2017
Uncaring caregiver bilks Medicaid while letting teen waste away imageMakayla Norman was a lovely teenager with sparkly brown eyes. The Dayton, Ohio 14-year-old had cerebral palsy. Bedridden, she couldn’t move or talk. Makayla depended on her trained homecare nurse for even the smallest details of bathing and eating. ...

Doctor peddles $60 million of unneeded drugs to poor people
January 17, 2017
Was major player in national epidemic of overprescribing powerful drugs imageMental illness made Dr. Fernando Mendez-Villamil rich and taxpayers that much poorer.  The Miami psychiatrist spooned out epidemic levels of unneeded antipsychotic drugs to seniors in Medicare and lower-income people in Medicaid — $60 million in false claims. Mendez-Villamil became ...

Home arson gangs singe insurers with $22-million spree
January 12, 2017
Intrepid prosecutor busts rings, earns Prosecutor of the Year Award imageWhy did the same singed furniture keep appearing in large insurance claims for different rented homes that suspiciously caught fire? Why were closets stuffed full of sweaters in South Florida, of all places? Strange. Such clues helped dogged ...

Home-health cons gouge insurance, abuse patients
December 09, 2016
Much-lauded “Entrepreneur of the Year” tries to steal $16 million imageBusiness owner Martha Lima was the queen bee of Miami’s home healthcare industry. The elderly entrepreneur ran a lucrative homecare firm. She was a model success story — a Cuban immigrant who fled Castro’s dictatorship and built ...