News
Agent in Nevada gets probation for commissions scam
February 08, 2010, Reno, NV -- Bradley D. Buchanan was sentenced to 12 to 32 months suspended sentence, placed on probation and ordered to pay $5,000 in restitution for felony insurance fraud, Nevada Attorney General Catherine Cortez Masto announced Friday.
The charges stemmed from Buchanan's writing fake insurance policies for friends and relatives without their knowledge to gain commissions and bonuses, the AG's office said in a news release.
Buchanan, 38, pleaded guilty to the charges in December and was sentenced in Washoe District Court by Judge Patrick Flanagan.
The policies were written between October and December 2008, Masto's office said. The Nevada Insurance Commission revoked Buchanan's license
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Clinic manager in Detroit off to prison for medical fraud
February 08, 2010, Detroit, MI -- Miami-Dade County resident Dulce Briceño was sentenced today to 63 months in prison for her role in a $2.3 million Medicare fraud scheme, announced Assistant Attorney General Lanny Breuer of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services, Office of the Inspector General’s (HHS-OIG), Chicago Regional Office.
U.S. District Judge Ursula Ungaro in the Southern District of Florida also ordered Briceño to pay $1.8 million
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‘iPhone envy’ leading some to dump old cell phones
February 08, 2010, Culpertina, CA -- iPhone insurance fraud goes “through the roof” when a new or upgraded model of the device becomes available, an electronics insurer has said.
As new generations of Apple’s smartphone are launched, older models are frequently ‘lost’, ‘stolen’ or damaged by consumers with "iPhone envy" who know they will receive the latest version as a replacement, Supercover Insurance director Carmi Korine said.
According to Supercover, iPhone owners are 60 per cent more likely to take out insurance than other mobile phone users. Policies for the devices are the fastest growing type of cover in the gadget sector.
"While most customers take out insurance
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Fraud arrests rose 35% in North Carolina last year
February 08, 2010, Raleigh, NC -- To the litany of trends thrown out of whack by the recession, add another one: insurance fraud.
Convictions in cases of insurance fraud in North Carolina rose by 48 percent in 2009, while arrests shot up by 35 percent, according to the North Carolina Department of Insurance. Financial restitution collected by DOI in such cases nearly doubled, to $10.5 million.
Wayne Goodwin, elected commissioner of DOI in January 2009, says his department is investigating more cases and the amounts involved are also larger.
“We are extremely busy,” says Goodwin. “There have been dramatic increases in the past year. All categories have seen
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Two prison guards in Fla. accused to auto giveup scam
February 08, 2010, Putnam, FL -- Two Putnam County corrections officers found themselves behind bars Thursday night after being charged in an insurance fraud scheme, a Sheriff's Office news release said this morning.
Anthony Harris, 36, is charged with insurance fraud and obstruction of justice. He was booked into the jail on $1,500 bail. Timothy David Chisholm, 30, is charged with obstruction of justice. He was sent to jail on $500 bail.
The Sheriff's Office said Chisholm reported finding that a Dodge truck belonging to Harris was missing from in front of Harris' San Mateo home Jan. 24. The vehicle was reported stolen and found destroyed by
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Clinic owner in W.V. charged in $298K drug fraud scam
February 08, 2010, Charleston, WV -- The owner of a medical clinic in southern Wayne County was charged Friday in an illegal prescription drug scheme.
Cameron J. Justice, 30, of Crum is charged with conspiracy to misuse a registration number, health care fraud and aiding and abetting from 2005 through March 2009 at Justice Medical Complex, located in Crum near the border of Wayne and Mingo counties.
The charges claim Justice defrauded Medicare out of more than $289,000.
The investigation into the clinic and its practices already had led to charges against two doctors.
Charges were filed last week against Dr. Augusto T. Abad of Charleston. He faces conspiracy
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Chiro in Pennsylvania charged with torching his office
February 08, 2010, Philadelphia, PA -- A Philadelphia-area chiropractor is charged with burning down his office and four others amid a business tax investigation.
Federal authorities say 47-year-old Jonathan Wiktorchik Jr. of Southampton, Bucks County, was the subject of an Internal Revenue Service probe before the gasoline-fed, 2008-blaze.
Wiktorchik is charged in Monday's indictment with arson, mail fraud and lying about the March 2008 fire in Ottsville.
The indictment says Wiktorchik initially told investigators he was on a camping trip and later blamed the fire on gang members. Authorities say he also lied by saying all his business records were destroyed in the fire.
A message left at his
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Agent in Indiana arrested for stealing client premiums
February 08, 2010, Salem, IN -- Police arrested a Washington County insurance agent on Friday in connection with an insurance fraud investigation.
Tyson J. Thompson, 36, James Street, Salem, turned himself into the Washington County Jail in Salem. He was charged with insurance fraud, a class C felony, Sgt. Jerry Goodin of the Indiana State Police said.
The charge was a result of an investigation that began in late October 2009.
Detective Scott Stewart from the Indiana State Police Post at Sellersburg received a phone call then from an investigator with a national insurance company. The investigator told Stewart that a local agent from Salem was contracted
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Will this be the year N.Y. lawmakers tackle auto fraud?
February 08, 2010, Albany, NY -- Insurance industry representatives were optimistic that some type of action will be taken this year to remedy flaws in New York’s no-fault auto insurance system after a State Senate Insurance Committee hearing.
The hearing was held Thursday, days after Assemblyman Joseph Morelle, D- Irondequoit, chairman of the Assembly Insurance Committee, held a roundtable discussion on the no-fault system.
“There seems to be general consensus that there needs to be reform,” Howard Goldblatt, director of government relations for the Coalition Against Insurance Fraud, said about the Senate hearing. “Even the trial lawyers spoke somewhat favorably about, for instance, an anti-runner law. Whether
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Medical supplier in Houston indicted for $1M scam
February 05, 2010, Houston, TX -- The majority owner and operator of a Houston durable medical equipment (DME) company was arrested yesterday in connection with a $1 million health care fraud investigation, United States Attorney Tim Johnson and Texas Attorney General Greg Abbott announced today.
Fred Jessie Cole Jr., 44, of Houston, the majority owner and administrator of Crusade Integrated Health Care Services, was arrested on Feb. 3, 2010. Following an initial appearance before a U.S. Magistrate Judge, Cole was ordered released on $100,000 bond pending trial. Cole is charged with 14 counts of health care fraud in an indictment returned under seal by a grand jury
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Convicted of fraud, Egyptian-born doc may be deported
February 05, 2010, Columbus, OH -- An Egyptian-born doctor has been sentenced to 3 1/2 years in prison and faces deportation for his role in a $7 million health care fraud case in Ohio.
Federal prosecutors say 48-year-old Dr. Hany Iskander shredded documents to block the investigation of his pain-management offices in Lewis Center and Bucyrus north of Columbus.
He was convicted in October on a charge of obstructing justice and later pleaded guilty to health care fraud. The case involved claims to government-funded Medicaid and Medicare programs for the indigent and elderly, and other health care programs.
On Thursday, U.S. District Court Judge Solomon Oliver Jr. in
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U.S. senator wants federal law on staging auto crashes
February 05, 2010, Washington, DC -- Sen. Chuck Schumer vowed to clamp down on auto insurance fraudsters in New York - and around the country.
"Until we tackle this problem head on, insurance rates will continue to rise," Schumer said yesterday.
His congressional push to enact new federal penalties on swindlers came after the Daily News found suspected auto insurance fraud cases had spiked 33% over the past three years.
In many cases, experts say, accidents are staged and corrupt medical clinics submit fraudulent claims for treatment that was either not performed or not medically necessary.
Experts say the scams are pervasive in and around the city, particularly
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NC homeowner charged with arson and insurance fraud
February 05, 2010, Mount Airy, NC -- A Mount Airy man has been arrested on two felony charges stemming from the alleged burning of his home in late January.
Roy Dale Collins, 65, of 118 Ridgeview Drive, was taken into custody Wednesday evening on violations including arson and insurance fraud charges, according to Detective Tim Hodges of the Mount Airy Police Department.
Collins was released from the Surry County Jail Thursday afternoon upon posting a $5,000 secured bond, a jail spokesman said. He is scheduled to appear in District Court on Feb. 25.
The charges against Collins came in the wake of a joint investigation by city police, the State
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Rise in fraud said to be pushing up auto rates in Florida
February 05, 2010, Tallahassee, FL -- State Farm asked to boost auto insurance rates this week, just weeks after another insurance giant -- Allstate -- started increasing average statewide rates for some policies.
In a filing to the Office of Insurance Regulation this week, State Farm asked to increase average statewide rates by 9 percent for State Farm Mutual and 11.8 percent for State Farm Fire and Casualty. And a 16 percent statewide average increase for some Allstate auto insurance policies took effect on Jan. 11.
State Farm is the largest auto insurer in the state, followed by Geico General and Allstate.
The Allstate increase will affect less
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Man in Penn. helped stage robbery to file comp claim
February 05, 2010, Philadephia, PA -- A Philadelphia man who staged a fake robbery and shot his own cousin as part of an elaborate conspiracy to help the cousin collect workers' compensation insurance has pleaded guilty in Maryland to a single count of conspiracy to commit insurance fraud.
Joseph Francis Brooks, 46, of Philadelphia, was given a five-year suspended sentence and 18 months probation.
The guilty plea stems from a June 2002 incident when, while living in Baltimore, Brooks conspired with his cousin, Pierre Lamont Taylor to stage an armed robbery of Taylor for the purpose of making a false worker’s compensation claim with Taylor’s employer, United
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Insurance fraud prosecutions spike in Minnesota
February 04, 2010, St. Paul, MN -- A shift in priorities at Minnesota's Department of Commerce the past couple of years has meant an increase in criminal cases being referred to prosecutors.
Mortgage, securities and insurance fraud cases have resulted from the stepped-up attention to more serious crimes. The department said it referred 45 cases to outside authorities in 2009, up from five or fewer in previous years.
While the perception of the department is one of a traditional regulatory agency, its investigators have the authority to obtain search warrants and subpoenas.
To the department's investigators, "we've simply said if you have to choose between somebody getting ripped off
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Hospitals fighting hard against false claims bill in Iowa
February 04, 2010, Des Moines, IA -- The Iowa Hospital Association is opposing legislation that would provide Iowans with a financial incentive to report suspected Medicaid fraud.
The legislation is modeled after the federal government's False Claims Act. That law enables whistle-blowers to bring lawsuits against federal contractors who are overbilling or otherwise defrauding taxpayers. If the whistle-blowers prevail in court, they can collect 15 to 25 percent of the damages paid by the contractor.
Twenty-three states have enacted versions of the False Claims Act. Those laws are designed to deter fraudulent billing to state, rather than federal, agencies.
As part of his state-reorganization plan, Gov. Chet Culver has
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Mom, daughter sentenced for home-health con in Conn.
February 04, 2010, Hartford, CT -- A mother and daughter from the Uncasville section of Montville were sentenced Tuesday for defrauding the home health care program they worked for of thousands of dollars by lying on time sheets, according to the chief state's attorney's office.
Beverly Carrion-Turner, 32, will serve 15 months in prison and five years' probation. She was also ordered to pay $1,000 in restitution to the state's Medicaid program.
Her mother, Judy Tobey, 47, pleaded guilty today to second-degree larceny and was given a suspended sentence of five years. She was also placed on probation for three years.
The women were hired by a Medicaid-funded
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Man, teen charged with drug diversion in Tennessee
February 04, 2010, Whitwell, TN -- The Office of Inspector General (OIG) today announced that Andrew L. Wilbourn, Jr., 18, of Whitwell, and Willard Land, 66, of Dunlap, were both indicted by a Sequatchie County Grand Jury in separate incidents. Each is accused of selling prescription painkillers to an undercover informant with the Sequatchie County Sheriff's Office.
In Land's case, the drug was the painkiller hydrocodone; Wilbourn is accused of selling a prescription for adderall, a stimulant used most often to treat narcolepsy and attention deficit hyperactivity disorder (ADHD). Investigators said that in both cases, the prescriptions were paid for by TennCare.
If convicted of the TennCare
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False Claims Act becomes law in New Jersey
February 04, 2010, Trenton, NJ -- A bill designed to enhance the state's ability to recoup money fraudulently taken from the state's Medicaid system was signed into law on Jan. 18.
(A-3731), sponsored by Assemblymen Herb Conaway, Wayne DeAngelo, Nelson Albano and Matt Milam, amends the state's False Claims Act to bring it in line with the federal Deficit Reduction Act, providing for enhanced recovery efforts in Medicaid fraud cases.
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Trucker in Washington pleads guilty to $47K comp scam
February 04, 2010, Tumwater, WA -- A Ritzville man pleaded guilty to possession of stolen property in connection with illegally collecting workers’ compensation benefits while collecting wages from a nursing home managed by his wife.
Ronald E. Newton was ordered to repay the Department of Labor & Industries (L&I) $47,487 for illegally collecting workers’ comp benefits from January 2005 through December 2006. He was injured in 2004 while working as a truck driver for a Spokane trucking company.
“We aggressively go after people suspected of stealing from workers’ comp, and those who are caught will pay,” said Carl Hammersburg, manager of L&I’s Fraud Prevention and Compliance Program.
To
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Questionable claims to NICB rose 14% in 2009
February 04, 2010, Des Plaines, IL -- A total of 85,209 questionable claims were referred to NICB in 2009 compared with 74,902 received in 2008, an increase of 14 percent. These are claims that NICB member insurance companies refer to NICB for closer review and investigation based on one or more indicators of fraud. A single claim may contain up to seven referral reasons. The full report is available at www.nicb.org.
As in previous reports, this review shows an overall increase in questionable claims submitted to NICB member insurance companies under property, casualty, commercial, vehicle and miscellaneous referral reasons.
"While there has been modest
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Firefighter in N.Y. avoids prison after car-fire conviction
February 04, 2010, Buffalo, NY -- A retired Buffalo Fire Lieutenant avoids prison time for setting fire to his leased car.
State Supreme Court Justice Russell Buscaglia sentenced Roberto Ruiz to five years probation.
Ruiz was arrested last July on arson and insurance fraud charges.
The car caught on fire a few months before.
Ruiz admitted setting the fire to avoid charges for damage and excess mileage on the vehicle.
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Cop in Fla. accused of receiving payoff for aiding scams
February 04, 2010, Surfside, FL -- A Surfside police officer is off the job after being accused of fraud.
Officer Woodward Brooks reportedly assistance in insurance fraud by assigning case numbers to corroborate false claims. He would then reportedly receive a kick back for his actions.
Brooks, who joined Surfside Police in 2005, has been charged with falsifying insurance claims, official misconduct and grand theft.
Brooks has been released from jail on $20 thousand bond.
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Coalition to N.Y. lawmakers: “Fix no-fault now!”
February 04, 2010, Albany, NY -- During testimony before the New York Senate insurance committee today, the Coalition Against Insurance Fraud laid out a variety of proposals to curb the growth in no-fault insurance fraud in the state.
Outlawing the practice of runners who organize staged crashes would be a good start, according to Coalition government affairs director Howard Goldblatt. He also said the state needs to be a much better job in cracking down on fraudulent medical providers.
Below is his testimony:
Senator Breslin and members of the Committee, I am Howard Goldblatt the director of government affairs for the Coalition Against Insurance Fraud. I appreciate
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