Fraud of the Month archives
Arson rings round up dozens of homes to torch in arson spree
Homes and cars were kindling for Verdon Taylor, the overlord of a crime ring that lit up more than 30 arson fires to score nearly $1 million of insurance money.
Buy cheap and claim big was Taylor’s modus during a 16-year binge that traversed the Richmond, Va. area
Taylor’s rat pack bought homes and cars at auctions and foreclosure sales — all at steep discount prices. Single-family homes and mobile trailers and cars all were rounded up. Taylor’s cohorts often rented houses as well.
They stuffed the homes ...
Fugitive goes on run after convicted of $50-million insurance grab
Patients found Dr. David Morrow’s offer an easy sell — he’d pretty them up with free or discounted cosmetic surgery.
Insurers would pay most of the tab, the celebrity skin doc told patients at his clinic in Rancho Mirage, Calif. Except health insurance generally doesn’t pay for plastic surgery. Beautifying the body is more an elective personal pleasure than than true medical need.
So Morrow blithely invented medical diagnoses he knew insurers would pay — falsely billing $50 million for trumped-up surgeries. He billed nose jobs as fixing deviated ...
Best friend betrays him for insurance payouts, burns home with blowtorch
David O’Dell was a gentle man, mentally slowed by a head injury, yet good-natured and trusting. He lived alone in an aging wooden house. He had no idea the home would become his coffin. O’Dell was burned alive for insurance money by someone he considered his best friend.
O’Dell worked for Joseph Meyers in upstate Wayland, N.Y. Meyers and his wife Iryn wanted to buy a double-wide trailer to upgrade their living quarters, and Joseph planned to buy two tow-truck businesses.
O’Dell and insurance money were their gateways ...
Dallas doctor led $375-million Medicare scam claiming healthy seniors were infirm, homebound
Jacques Roy mounted a form of home invasion, so big and audacious that he’ll serve 35 long and lonely years in federal prison.
The Dallas-area doctor authored one of the largest Medicare cons in history. The elephantine $375-million plot cranked out thousands of false claims for phony care of supposedly infirm and homebound seniors.
Medicare gives seniors a leg up if they’re stuck in their homes, too unhealthy to get around. Uncle Sam pays for specialists to come to their homes and help with their day-to-day medical needs.
Hundreds lose coverage, feds demand hefty repay
Where’s Eric Conn?
The feds want to know. So do the Kentucky disability lawyer’s clients — hundreds, many stuck without disability money they desperately need to survive.
Conn engineered the largest federal disability ripoff in U.S. history — nearly $600 million in pilfered taxpayer money, plus a judge bribed to grease disability claims for Conn’s clients.
After pleading guilty, Conn slipped out of his ankle monitoring bracelet and disappeared while awaiting sentencing. He’s still on the run, facing up 12 years or more in federal prison.
Face plastered on billboards
Conn was something of a celebrity ...
Pedestrians grievously hurt, drivers speed away, lie about collisions
Dazed and fumbling after drinking at a party all night, Maxwell Materazzi-Hatala made a dumb choice to drive home.
The Scranton, Pa.-area man rammed into a trash collector and crushed the city worker’s legs. Materazzi-Hatala then lied to his insurer about the collision. It was a desperate bid to fool his insurer into paying for repairing his Toyota’s crumpled front end, and throw police off the track.
Hit-and-run drivers sometimes use insurance scams to camouflage their mistakes and avoid responsibility for the grievous injuries they cause innocent people trapped in the ...
Lives on fake identity for years before being nabbed again
Just a small favor, Dr. Tigran Svadjian begged the feds. He was cornered for allegedly stealing nearly $2.5 million from California’s state-run health insurer. He was mixed up with a suspected Armenian mob-related medical fraud ring.
The Newport Beach physician told prosecutors he’d plead guilty, and agreed to go undercover by wearing a wire in conversations with suspected ring cohorts.
He just needed time to visit his ailing mother in Russia. Sure, why not, the feds agreed. So Svadjian hopped a flight to Moscow. The feds soon received a ...
Violence a threat that all fraud fighters watch out for
Foggy addicts laced with heroin and other opioid poison trooped to Kenny Chatman’s drug treatment center and sober homes, anxious for a clean life.
Instead, Chatman plied them with more drugs and pimped out women in exchange for drug highs. The Palm Beach, Fla. entrepreneur kept his residents addicted and tethered to sober homes that often were little more the unsafe flophouses. Chatman preyed on their misery to soak health insurers for $25 million of useless sobriety treatment and drug testing.
Sober homes and drug testing have taken off in response to America’s rising tide of opioid addiction, especially ...
Prentice E. Ponds was cornered. He’d just made an insurance claim for repairing his damaged Chevy Camaro. Insurer adjuster Mark Frayne visited his home. Frayne showed him photos proving the car was damaged before he bought it on eBay
. Free repairs ... false claim ... arrest likely.
Ponds panicked. The Tulsa man was on parole, with a long felony rap sheet. A fraud bust could toss Ponds back into jail for years.
He clicked into fight-or-flight mode. Ponds beat up Frayne — breaking his ribs and lacerating his head. ...
Duo ignites gasoline that exploded in botched insurance scam
Jamal Abu Samak blew up a New Orleans grocery store, firing up an insurance arson that went tragically wrong and incinerated a tenant living upstairs.
Samak has lodged unappealing appeals for years in Hail Mary efforts to reduce his life sentence in federal prison.
A federal court denied Samak’s latest bid in January 2017 after years in jail. He launched the botched scam in 1991. Still, that decades-old case reveals the chilling potential of insurance arsons.
The arsonists often botch attempts to burn down homes or businesses for insurance paydays. ...
Intrepid prosecutor busts rings, earns Prosecutor of the Year Award
Why 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 Miami-Dade Assistant State Attorney Laura Uriarte build airtight cases that shut down five of the largest insurance-arson rings in Florida history. That halted an eye-opening $22-million insurance-fraud crime wave, earning her the Prosecutor of the Year Award
Widespread fraud rings torched dozens of homes throughout South Florida — reinforcing the region ...
Much-lauded “Entrepreneur of the Year” tries to steal $16 million
Business 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 a prosperous life from scratch.
Lima’s firm provided skilled nursing, physical therapy and other care to frail, homebound seniors who couldn’t fend for themselves. She made a fortune off their misfortune. Years of glittering success peaked when she was named national “Entrepreneur of the Year” by the Latin Chamber of ...