The Fraud Report

Allstate Suing for $3.8M in New York

Trace America — Wed, 22 May 2013 20:05:23 +0000

Since 2003, Allstate Insurance Company has filed 47 fraud lawsuits in New York State, attempting to recover over $235 million in damages. They are now on their third insurance fraud lawsuit of 2013, and are trying to collect $3.8 million against six physicians and five medical professional corporations. Allstate says the defendants submitted fraudulent billing [...]

FL Gains 26 Arrests in Operation Sledgehammer

Trace America — Mon, 20 May 2013 20:44:44 +0000

When I think of sledgehammers, I tend to think of Thor; but for authorities in Palm Beach and Miami-Dade counties, they might think of staged automobile accidents. “Operation Sledgehammer,” the multi-agency investigation that has been three years in the making, resulted in the arrests of 26 people on may 16th. Officials arrested 26 of the [...]

NY Nabs 8 in $2M Fraud Ring

Trace America — Mon, 20 May 2013 19:42:16 +0000

The New York prison system had eight more mouths to feed recently, after authorities arrested and indicted eight individuals for their roles in a $2 million auto accident insurance scam. They are each facing charges such as mail fraud and conspiracy to commit mail fraud. According to the indictment and IFAwebnews.com, the defendants staged accidents [...]

South FL Chiropractor Arrested for Fraud

Trace America — Mon, 20 May 2013 19:42:05 +0000

It sounds like a story we normally write, but this time it’s much closer to home. Taking place in our own backyard, a Fort Myers chiropractor was arrested last week for paying patients to fake injuries after car crashes; all so he could rip off insurance companies. According to investigators and NBC News, Dr. David [...]

PA Woman, Co-Conspirator Sentenced for “Stolen” Lexus

Trace America — Thu, 16 May 2013 19:54:29 +0000

Back in March we brought you the story of Kathleen B. Chung, the 69-year-old Philadelphia woman who took part in a car insurance scam with Kyung Soon Kim. Both participants were recently sentenced. Chung was sentenced last week to seven years of probation for her two felony insurance fraud charges and a misdemeanor charge of [...]

PA Man Claims Fake Burglary, gets Charged with Insurance Fraud

Trace America — Tue, 14 May 2013 20:13:27 +0000

A Pennsylvania man was arrested on May 9th for allegedly filing a false insurance claim from a phony burglary. Dunmore police said he came into the Police Headquarters on March 14th to report the “burglary” that happened on March 6th and ended up costing him almost $4,300 in electronics and accessories from his apartment. According [...]

Father Charged with Murdering Son for Insurance Money

Trace America — Tue, 14 May 2013 20:13:12 +0000

Joaquin S. Rams, 40, has been indicted on a murder charge after he was accused of drowning his 15-month-old son for the life insurance money. His trial will begin on August 5th. According to court documents, Rams took out over $500,000 in life insurance on his son, Prince McLeod Rams, who was the cause of [...]

Armin Wand receives 3 Consecutive Life Sentences for Arson, Murder

Trace America — Tue, 14 May 2013 20:12:59 +0000

Back in September we brought you the gruesome story of Armin Wand, the man who tried to obtain insurance money by burning down his house and brutally murdering his three sons and attempting to murder his pregnant wife and their 2-year-old daughter in the process. Sharon Wand, the badly burned young mother and wife, sat [...]

Indiana Woman Accused of Setting Fires, Claiming “Destroyed” Items

Trace America — Fri, 10 May 2013 17:14:30 +0000

An Indianapolis Department of Public Works employee, Donna Fitzgerald, 48, was arrested on May 2nd on two charges each of arson and insurance fraud, both felonies. She is accused of setting a string of fires and then fraudulently collecting thousands of dollars from the insurance company. Investigators said Fitzgerald has started at least four fires [...]

NC Man Convicted for role in $5.3M Embezzlement Scheme

Trace America — Wed, 08 May 2013 20:10:13 +0000

Back in September we brought you the story of an insurance embezzlement scheme that investigators say cost a North Carolina company over $5 million. The second of four men indicted for that scam has now been convicted. Court clerks in LenoirCounty said Marvin Quinn, 56, was convicted on two counts each of aiding and abetting [...]