Today’s Fraud News

friday, december 13, 2019

Carolina driver allegedly lies deer caused uninsured damage

December 12, 2019, Columbus County, NC — A Columbus County woman is accused of falsely claiming a collision with a deer damaged her car that she recently insured. Maxine Bracey Smith of Hallsboro was arrested on Dec. 9 and charged with insurance fraud and obtaining property by false pretense. Investigators with the N.C. Department of Insurance say Smith made a claim with Peak Property and Casualty Insurance Co. stating that she damaged her 2017 Hyundai Sonata after colliding with a deer on Sept. 23. … more info > WECT News

Iowan lies about prior damage in buying auto insurance

December 12, 2019, Davenport, FL — Terrence Edwards, age 52, of Davenport, Iowa, recently pled guilty to four counts of Tampering with Records following an investigation by the Iowa Insurance Division’s Fraud Bureau. “Insurance fraud is not a victimless crime. We all pay for insurance fraud in the form of higher insurance costs,” Iowa Insurance Commissioner Doug Ommen said. “I appreciate the hard work of our fraud bureau, the Davenport Police … more info > WOC 1420

Sewing firms hid payroll millions to drop premiums in California

December 12, 2019, Los Angeles, CA — Two sisters who are CEOs of sewing companies that are subcontracted by True Religion jeans have been sentenced for conspiring with their accountant to hide tens of millions in payroll to avoid paying for workers‘ compensation insurance. Sung Hyun Kim and Caroline Choi, CEOs of Meriko, Inc. and SF Apparel, Inc., were sentenced Tuesday in a court in Los Angeles. Kim, who pleaded no contest in December to workers‘ compensation fraud, was sentenced to two years of … more info > Stock Daily Dish

Boston man allegedly buys 11 policies for dead brother

December 12, 2019, Boston, MA — A Boston man was charged today in connection with a scheme to defraud numerous life insurance companies. Kellerman Jason Zheng, 33, was arrested and charged with one count of mail fraud and one count of wire fraud. Zheng was detained following an initial appearance in federal court in Boston today. Between December 2016 and March 2018, Zheng allegedly took out at least 24 life insurance policies in his brother’s name. These policies, which carried total coverage limits in excess … more info > United States Department of Justice

Georgian claims faith-based health plan stiffed him

December 12, 2019, Atlanta, GA — When Michael Greer shopped for his family’s 2018 insurance plan, he joined the thousands of Georgians on the individual market seeking something more affordable. His trusted broker had a suggestion: cost-sharing coverage called health share or medishare. “He said, ‘It’s not traditional insurance,’” Greer remembers the broker saying about the coverage he bought through a company then called Aliera, now known as Ensurian. “‘But they’re going to cover what they say they’re going to cover.” … more info > AJC

New Yorkers allegedly launder stolen insurance via charity

December 11, 2019, Tallahassee, FL — Florida’s Senate Banking and Insurance committee meeting ended in a split four-to-four vote on proposed legislation that proponents claimed would help decrease alleged auto glass repair and replacement fraud. The bill, discussed in yesterday’s meeting, sought to prohibit auto glass repair and replacement shops from offering rebates or other incentives, such as gift cards, in exchange for motorists making insurance claims for windshield repairs or replacement. … more info > Westfield Online