Insurance Agent Guilty of Fraud

An insurance agent accused of stealing more than $400,000 from two elderly clients pleaded guilty Thursday in Minnehaha Circuit Court.

Paul Wentzlaff, 46, of Sioux Falls faces up to 20 years in prison for embezzlement and insurance fraud.

Title Company Owners Charged With Embezzlement

A New Port Richey couple has been arrested on multiple counts of theft of escrow funds and money laundering for allegedly stealing nearly $8 million from their title company escrow accounts.

The charges against John T. Wehlau and Cheryl T. Wehlau, owners and operators of Gulf Coast Title Closings & Escrow Services in New Port Richey, are the result of an investigation by the Department of Financial Services' Division of Insurance Fraud, a statewide law enforcement agency that investigates insurance fraud. The primary victim, Commonwealth Land Title Insurance Co., covered hundreds of home buyers' missing funds.

The Wehlaus are charged with 21 counts of theft of escrow funds, three counts of money laundering and one count of grand theft. If convicted on all of the charges, they could face a sentence of up to 30 years in prison on each count.

Woman Charged in Insurance Fraud

A local health care worker has been indicted on 20 federal wire fraud charges for allegedly billing for more than $242,000 in life insurance screening exams that she never conducted.

Sally Ann Hodge, 49, was supposed to be providing health exams for people applying for life insurance, and submitting her bills to a Colorado company, her indictment says. In return, Hodge received between $30 and $100.

Excellus, IBM Work Together to Fight Fraud

Excellus BlueCross BlueShield and IBM Corp. are working together to fight health care insurance fraud.

IBM’s Risk Identification Analysis Service will be used by Excellus to review pharmacy-related claims to uncover complex schemes, the companies said. Such schemes include collusion, inappropriate billing practices, prescription forging, prescription pad theft and members who engage in “doctor shopping.”

“Someone who knowingly commits insurance fraud is no different than any other person who steals,” said Flora Allen, corporate director of Excellus’ special investigations unit. “Fraud affects everyone’s bottom line, so we aggressively and proactively pursue recoveries and convictions because we are protecting our members’ premiums.”

Construction Worker Charged with Insurance Fraud

A construction worker faces felony charges for insurance fraud after investigators say he withheld medical information during a worker’s compensation claim.

Archie Smiley, 43, was working for a Philadelphia, Miss.-based construction company in June 2006 when he “injured his back while carrying a grinder up a flight of stairs,” according to an Okaloosa County Sheriff’s report.

Fraudbuster Helps Keep Insurance Costs Low

The National Insurance Crime Bureau, a nonprofit group founded by the insurance industry, estimates that insurance fraud costs Americans about $30 billion a year. This equates to $300 in higher insurance premiums for the average household.

“It’s very worthwhile to everybody,” Gajda said. “It helps everybody. It saves money.”
She admitted that devoting her life to investigating insurance scams can make her cynical, especially when fraud is so prevalent. Insurance industry studies indicate that at least 10 percent of claims are fraudulent, she said.

Insurance Fraud Charges Filed In 2004 Bus Crash

Twelve people were charged with insurance fraud Tuesday in a 2004 casino bus crash. Authorities allege the crash in Philadelphia was staged so the passengers could cash in by filing bogus injury claims.