Gainesville Man Accused of Stealing Almost $2 Million

Gainesville insurance agent James Sirmans Jr. is in a San Diego jail awaiting extradition on a charge of first-degree grand theft after allegedly pocketing $1.8 million in premiums for policies he took out on 20 sham businesses he started.

Sirmans, 58, has operated Rubicon Insurance for 24 years and Rubicon Realty & Investments for 16 years. The phone numbers to both Gainesville businesses are disconnected.

Read more here.

Security Firm Holding Competition for New Agents

He's all dressed up for a rumble in the jungle, or an ambush in the bush. Pretty exciting stuff for someone who works in insurance.

This fierce-looking fellow is actually an investigator of insurance fraud, a crime which costs the industry millions and leads to premium hikes for the rest of us.

He and his colleagues are called in by insurance companies to gather evidence, sometimes on video, against suspect claimants, such as those who say they are incapacitated by injury.

Washington Launches New Insurance Fraud Web Site

Washington Insurance Commissioner Mike Kreidler is using his office's Web site to help fight insurance fraud.

In an effort to protect consumers, the fraud section of the site has been expanded to educate people on how to recognize and avoid fraud, and to make reporting easier. It also features facts about fraud and examples of real cases.

"Insurance fraud is a widespread problem and many people never think about it or consider how it affects them," Kreidler said. "For example, people might think that padding an insurance claim is a victimless crime, but they're wrong. Every one of us pays more to make up for people who cheat the system.

Insurance Car Crash Scam in England

An insurance-fraud gang racked up £8m by duping innocent motorists into crashing their cars.

Crooks cut their own car brake lights before stopping sharply at roundabouts - so helpless victims rammed them from behind.

The gang members then made hugely-insurance claims on the victims' policies.

They often invented whiplash injuries to fictional `passengers' and exaggerated the damage to their own cars. And hundreds of drivers across Greater Manchester and Lancashire fell victim to the `crash for cash' scam, police believe. The average claim was £20,000 per incident.

Twenty-five arrests have already taken place after a three-year probe - with more expected in coming weeks.

Arizona Hosts Insurance Fraud Summit

The price tag of fraudulent property and casualty insurance claims nationally is about 10 percent of insured losses," said Ron Williams, executive director of the Arizona Insurance Council. That was one figure that resulted from the largest gathering of Arizona law enforcement, government agencies and insurance representatives.

The Arizona Insurance Fraud and Vehicle Theft Summit, co-sponsored by the National Insurance Crime Bureau (NICB) and the Arizona Insurance Council (AIC) representing property and casualty insurers, took place in Phoenix on Tuesday, Oct. 21, as part of a summit to discuss insurance fraud issues, prevention tactics and public policy solutions.

Fraudsters Get Going As The Times Get Tough

White collar crime is on the rise as the global financial crisis puts the squeeze on struggling New Zealand businesses and their executives.

Police and private investigators confirm the credit crunch has led to an increase in business fraud and employee theft, while desperate property owners and motorists are torching houses and cars in insurance scams.

Dan Thompson, director of leading investigation firm Paragon NZ, said the recent rising trend of corporate crime was similar to the aftermath of the 1987 stockmarket crash - and he predicted fraud would increase further over the next 12 months.

As the Wall St meltdown hits the New Zealand markets, Thompson said cash-strapped employees, contractors, service providers and management were resorting to fraud.

"When times get tough, people start looking after themselves. We're definitely getting a rise in investigations of people feathering their own nest," said Thompson.

"With the financial crisis, it doesn't take long for people to get worried and say, 'I've got to grab what I can'."

Air Bag Fraud: Unreported "Life and Death" Scam

The next time you buy a used car or go to an auto repair shop, will your car have working air bags when you drive it away?

Lynette Loretto, a mother of three who lives in an Indian pueblo in Jemez, N.M., didn't know that the shiny yellow Chevy Cavalier she bought from a used-car dealer was a potential death trap. When she found out later that the car had been in an accident and didn't have working air bags, she says it made her skin crawl.

"I went hysterical," Loretto says. "I drove my daughters in that car a couple of times. ... If something were to have happened to us ... that would have been awful."

A Weekend Edition investigation shows that some unscrupulous auto repair shops have victimized consumers by failing to replace air bags that had deployed in a crash. The investigation also reveals instances in which used-car dealers sold cars without working air bags.

In some cases, air bag compartments have been stuffed with beer cans, paper or packing peanuts. Sometimes the original, faulty air bag is just pushed back in. And sometimes the air bag isn't replaced at all, leaving the compartment empty.

Although the number of such victims is unknown, the consequences can be tragic.

"Biggest Loser" Contestant a Big Loser - Indicted on Fraud Charges

A former “Biggest Loser” TV contestant from Boston who won a cool $100,000 on the show was indicted today for allegedly trying to scam insurance companies by repeatedly taking out pricey policies on jewelry after reporting that bling as stolen.

David Fioravanti, 43, who flunked out of the first season of the NBC hit show, is charged with five counts of motor vehicle insurance fraud, two counts of insurance fraud, larceny over $250, attempted larceny over $250 and making a false statement on a motor vehicle registration, Attorney General Martha Coakley’s office announced today.

Fioravanti is accused of registering his car at his mother’s address in Marshfield, where insurance premiums are cheaper, while he continued to live in Boston.

INSURERS KEEP WATCH FOR FRAUD IN HOME REPAIRS

A violent, destructive storm such as the one that hit Ohio on Sunday can bring out the best in people: neighbors - even strangers - chipping in to help one another through tough times.
It also can bring out the worst: storm-chasing contractors who descend on hard-hit areas to scam homeowners and insurance companies; normally honest people tempted to wheedle a little more than they know they deserve from insurance companies.
"We have found cases of some (contractors) causing additional damage in order to write up bigger estimates," said Mary Jo Hudson, director of the Ohio Department of Insurance.
Insurance fraud from property and casualty claims runs about $30 billion a year, according to the National Insurance Crime Bureau. This adds an equivalent amount to the premiums paid by policyholders.
There are many different types. Home or business owners who knowingly work with a contractor to artificially inflate an estimate are committing insurance fraud.
"Our claims adjusters are trained to inspect damage and know the difference between damage from hail and wind versus damage mechanically done," said Jeff Henderson, assistant vice president of claims operations for Motorists Mutual Insurance.
Such fraud, he said, could lead to a policy being voided.
Also engaging in insurance fraud are contractors who charge a fee to represent a homeowner in discussions with their insurance company or persuade them to grant them power of attorney.
"These are criminal offenses," Hudson said. "We are a law-enforcement agency and work with local prosecutors to prosecute fraud cases."

MAN WHO FAKED DEATH GETS 2 YEARS FOR FRAUD

CHRISTCHURCH, New Zealand, Sept. 19 (UPI) -- A New Zealand man who faked his death in 2002 and used a name taken from a gravestone to build a new life was sentenced Friday to more than two years.
Bruce James Dale, 43 was convicted of insurance fraud, the New Zealand Herald reported. His estranged wife and their sons received a large life insurance payment after he was declared dead in 2004.
After leaving his car in a coastal area near Auckland, Dale adopted the name Michael Francis Peach, which belonged to a baby who had died years before 10 days after birth. He moved to Christchurch on the South Island and built up a business.
Dale was arrested this year after he applied for a passport using his real name.
In an interview, Dale said that police would have found him if anyone had made a serious effort.
"You could do what I did in a week. The police stated that I went to extreme lengths. Well, they are going to think that because they want to make it sound as if they did their job properly," he told the Herald.
At the time of his disappearance, he said, he was dealing with financial problems as well as the breakdown of his marriage. He said that he also did not get on well with most of his family, although he missed his children.

FEDS INDICT 10 IN ALLEGED INSURANCE-FRAUD SCHEME

The owner of a Denver company and nine of his employees plotted in weekly meetings to rip off insurance companies by getting subcontractors to turn in fake, inflated bids, according to a 60-count federal indictment announced Tuesday.
Disaster Restoration Inc. routinely submitted bills to insurers that were 20 to 30 percent higher than what the company paid subcontractors, the indictment says.
It also claims that the chief operating officer, Charles "Chip" Homer Sharp, of Broomfield, threatened at least two subcontractors with violence or economic harm if they didn't go along with the scam.
DRI owner Michael Griggs said the company will defend itself against the allegations, then referred questions to his attorney, Michael Axt.

Consumers Face More Insurance Fraud Schemes

A rising number of consumers are dealing with insurance-related fraud schemes on a number of fronts -- from drivers who stage low-speed crashes, to unscrupulous agents who pocket premiums, to rings of medical providers who fabricate large volumes of fake injury claims, according to experts.

The Washington-based Coalition Against Insurance Fraud is trying to alert consumers about those and other scams involving vehicle airbags, auto repair shops, windshield repairs and workers' comp.

James Quiggle, spokesman for the coalition, said agent and insurer scams are among the largest average day-to-day scams targeting consumers.

"We're seeing a growing trend of agents who steal their clients' premiums and then issue fake insurance policies to create the illusion that the client has coverage," he said.

Louisiana Man Found Guilty on 8 Counts of Insurance Fraud

Arthur Copes of Baton Rouge has been found guilty on eight counts of insurance fraud, according to the Louisiana Attorney General's Office. Judge Anthony Marabella rendered the verdict following testimony from former patients who flew in from all over the country to testify against him.

Copes runs a clinic in Baton Rouge which provides braces for Scoliosis patients. David Caldwell, co-prosecutor, along with Butch Wilson, presented evidence showing Copes fraudulently billed Blue Cross Blue Shield of Louisiana of more than $88,000. The AG's office said Copes billed the insurance company for services he was not licensed to render and he expected upfront payments from clients who thought they were seeing a licensed medical doctor, which Copes was not.

Canoe Man and Wife Jailed For Six Years

John and Anne Darwin were each jailed for more than six years today for carrying out a £250,000 insurance con by faking his death in a canoeing accident.

John Darwin was jailed for six years and three months. His wife Anne was sentenced to six years and six months after she was found guilty of her role in the fraud.

The couple tricked the police, insurance companies and even their two sons Mark, 32, and Anthony, 29, into believing he drowned in the North Sea in 2002 - only for Mr Darwin to turn up at a London police station last year.

They were undone by a photograph of the grinning couple taken in Panama four years after he disappeared.

Plastic Surgeon's Perfect Life Marred

His plastic-surgery training in hand, Lawrence Saks left the Canadian winters he hated in the early 1980s and headed for what may be the world's most welcoming market for such medical specialists: esthetically obsessed southern California.

It was a profitable move. The product of a hardscrabble Quebec City upbringing, Dr. Saks built a fortune in the millions of dollars and forged a reputation as a generous philanthropist.

But that enviable life is suddenly on the brink of collapse. The 56-year-old doctor has been charged with US$4-million in insurance fraud and other crimes, allegedly for claiming handsome disability benefits for himself while continuing to do tummy tucks, facelifts and other surgery. As it turns out, the fraud case is only the latest and most damning in a string of brushes with the law and medical regulators.

California Report Details How to Reduce Fraudulent Insurance Claims

Following a meeting with his Advisory Task Force on Insurance Fraud, Blue Ribbon Review Committee, California Insurance Commissioner Steve Poizner announced that he will implement five actions to help reduce fraudulent claims, including creating a fusion center for insurance fraud investigations so law enforcement can share information more efficiently and quickly to identify emerging trends and crime patterns.

"Insurance fraud is not a victimless crime," said Commissioner Poizner. "The costs are passed onto consumers to the tune of $500 a year for every man, woman and child and that's why I have made fighting insurance fraud one of my highest priorities."

Consumers Warned of Insurance Fraud

From staged auto accidents to the sale of fake Medicare cards, insurance fraud is an increasing problem across the state and country.

In recognition of March being Fraud Prevention Month, AAA Arizona would like to shed light on this crime that is estimated to cost the average Arizona family an additional $300 per year in increased premiums.

Public Works Employee Charged on Eleven Counts of Felony Workers' Compensation Fraud

37 year-old Brian Phillips of Visalia was charged with 11 felony counts of Workers' Compensation Insurance Fraud. The case was jointly investigated by claims administrator Keenan & Associates in their Rancho Cordova Office, and Tulare County Deputy District Attorney Leland Sterling, who was also the prosecutor. The investigation revealed that Phillips was working for the Visalia Safe Company, owned by his in-laws, while receiving disability benefits from the City of Visalia.

Four Valley Cities Involved in Chiropractor Fraud

Businesses in four Valley cities are part of an alleged 5 state insurance fraud ring involving chiropractor offices.

The Allstate Insurance Company says people employed by Chiropractic Strategies Group obtained police reports of people not at fault in car accidents. Then telemarketers called them, saying that people could get a free check up at those offices.

Arizona Rep. Rick Renzi Pleads Not Guilty to Fraud, Extortion

Arizona Congressman Rick Renzi has pleaded not guilty to federal charges including insurance fraud, extortion and money laundering.