In 2018, there were quite a few notable examples of insurance fraud cases. And the most notorious ones actually make the Coalition Against Insurance Fraud’s “Insurance Fraud Hall of Shame“! Every year, the Coalition Against Insurance Fraud chooses the worst scammers for their Hall of Shame, and last year’s 9 inductees are well deserving.
The Coalition Against Insurance Fraud Highlights the Worst Scammers in the Industry
Formed 26 years ago, the Coalition Against Insurance Fraud educates the public about tactics used by scammers and brings unwanted attention to the scammers themselves. Every January, it releases a publication called the Insurance Fraud Hall of Shame, highlighting some of the most outrageous insurance scams of the previous year.
Two Fraud Cases Highlighted
There’s a Reason Insurance Companies Are Suspicious of Whiplash Claims
Whiplash is a legitimate injury that people can receive when their head and neck are violently jolted back and forth due to the impact of a car crash. Unfortunately, it is not uncommon for people to exaggerate whiplash injury for insurance settlements.
Felix Filenger, the ringleader of a web of criminals who all participated in the fraud, took this exaggeration to the extreme. He recruited recent accident victims to overstate their injuries and then persuaded ambulance drivers, chiropractors, tow truck drivers, medical clinics and hospitals to go along with it. Everyone got a piece of the 23-million-dollar pie, but Filenger’s was naturally the largest. The scam eventually came crashing down due to a network of informants. Filenger and his primary partner, Andrew Rubinstein, are now serving over six years in prison.
The Insurance Adjuster Who Recruited Greedy Homeowners
It’s the job of insurance adjusters to help repair damaged homes. Jorge Fausto Espinosa decided to wreck the homes instead. With full permission of the homeowners who received a cut of the insurance money, he set fire to some homes and deliberately flooded others.
While the homes had minimal damage to begin with, Espinosa made them much worse. This earned him and his ring of homeowners 14 million dollars before a prosecutor uncovered what he was doing. He even attempted to hire a hitman to kill the prosecutor. Fortunately, that move failed, and he is now spending many years in prison.
Insurance Fraud Affects Us All
People like you me, who have no involvement in insurance scams, pay more for their insurance premiums to make up for the loss suffered by the insurance company.
Innocent people have their identity and property stolen and sometimes even lose their lives due to the evil and greed of insurance scammers.
Insurance fraud might seem like a lucrative career choice, but it’s a rare criminal who can keep up the lifestyle forever. This is thanks to the efforts of the Coalition Against Insurance Fraud and the frustration of ordinary citizens tired of paying for the greed of others.
Just as we want to protect you against scams, Asurea is dedicated to protecting you, and your loved ones with insurance. Asurea offers Life Insurance, Mortgage Protection Life Insurance, Medicare Supplement Insurance, Final Expense Insurance, Disability Insurance, Retirement Planning products and more. For additional information, click on the ‘Get A Quote’ button below. Want to have articles just like this delivered to your inbox? Just enter your email address in the box below and click ‘Subscribe.’
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