Arson is No Solution for Foreclosure Threat

The fact that there is little or no financial gain in setting a home on fire may explain why investigators are seeing so few cases of suspected arson involving houses threatened with foreclosure.

When a home is destroyed by fire, insurance will cover the replacement cost of the home. However, whether the fire is a result of arson or other means, the lender will be named on the insurance settlement check.

In 2007, California recorded 481,392 notices of default. However, while the number of foreclosures has skyrocketed, potential foreclosure-related arsons have not followed suit. Only 14 arsons potentially related to foreclosure were reported in 2007 by the California Department of Insurance.

Torch Your Car? Big Mistake

From higher gas prices to mortgage payments ballooning through the roof, consumers are under tremendous financial pressure. To ease that pressure some people have set their vehicles on fire and then filed a claim with the insurance company.

The California Department of Insurance has launched an investigation of two cases in the Northern California area.

"You will get caught!" said John Standish, a bureau chief for the department's fraud division. He said people who are upside down in their car loans, or owe more than what the car is worth, got into the financial predicament on their own.

Doctor And Nurse In Cancer Insurance Fraud

A doctor and his nurse wife have been found guilty of a 731,000 euros fraud after falsely claiming she had breast cancer.

Dr Emad Massoud, 52, and wife Gehan, 45, from Ratoath, County Meath had insurance cover for serious illnesses.

They received the money from insurance companies in 2002 after successfully claiming Mrs Massoud had breast cancer.

Consumers admit to insurance fraud, says NU

One in 10 people would exaggerate an insurance claim if they believed they would not get caught and 7% admit to actually committing fraud, says a Norwich Union report.

Insurers often face criticism for using non-disclosure as a scapegoat in order to avoid payouts, but they have also said consumers need to take their share of the blame.

Former Firefighter Charged with Arson, Insurance Fraud

A former volunteer firefighter is accused of setting fires and filing fraudulent insurance claims.

State Police say 29 year old Daryl Goutremout is responsible for several fires over the past five months. They include at least one at his own property in Chaumont along with blazes on state land including the Ashland Wildlife Management Area.

Druggist Sentenced to 180 Days in Jail for Insurance Fraud

A pharmacist was sentenced yesterday to 180 days in jail for submitting fraudulent prescriptions to an insurance company to collect more than $80,000.

William Schobert, 50, of Wellington Drive in Lumberton pleaded guilty in June to a single count of health-care claims fraud.

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.