The largest-ever auto insurance fraud involving New Yorks no-fault insurance law resulted in the arrests of 36 doctors, lawyers and scam artists. The participants in this crime are accused of cheating insurance companies out of $279 million in bogus medical claims.
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Lying to his insurance company about vehicle damage to claim insurance did not do Louis Herman Watson any good last April 5, 2010. He was arrested for insurance fraud as he allegedly reported false facts to claim insurance money. His statements that were provided by police investigation brought in this truth as he declared damage and theft while his car was parked at the Ontario International Airport. This, according to the airport report files was a lie, for there was not a car named under him during the days that the offender claims.
The insurance fraud filed against 24 individuals raises the alarm on rate evasion.
Last December 27, headlines in Pennsylvania were filled with stories of the rate evasion case filed against 17 New Yorkers, 6 New Jersey drivers, and 1 Pennsylvania motorist. Twenty-one have been arrested already while the remaining 3 are still wanted by law enforcing agencies.
Rate evasion is the practice of falsifying information and submitting it to the state Department of Transportation, pretending to be residents of a state or owning a house or a garage there.
Insurance regulators and state authorities in California report a 31% increase in auto arson fraud cases since 2008.
Reports say that according to California insurance regulators, the dramatic 31% swelling of auto insurance fraud involving arson is a clear manifestation of the effects the economy has on people. Negative trends in the economy are pushing residents to make harsh actions to cash in on insurance policies.
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