Anyone who believes that insurance is a boring industry is not aware of recent fraud arrangements, so macabre that they could be transformed into griping adventure movies.
Such a hijack is the staged accident program committed by the family by ring leader William Mize. Mize went into extraordinary lengths to make it look like allegedly wounded vehicle passengers were actually injured in intentional accidents. In fact, their injuries caused by self -mutilation, sandpaper open wounds, showered with urine and fracture of seaweed with seaweed. For several years, Mize orchestrated six accidents a year a cool $ 6 million until he was arrested. He was on lamb for several years, recently discovered, arrestedand do now time.
A more pathetic story reminiscent of 1971 Film ‘The gang that couldn’t shoot straight’, containing a young Robert Deniro who mimicked a priest had a man in California who mimics a bear. Bear-Man wore a bear suit as he crawled around and damaged the interior of a Rolls Royce ghost and other luxury vehicles. The mob demanded $ 142,000 from insurance companies. The brave con was caught on ribbon of a member of Bear Gang presenting it to the insurance company where it was considered to be a scam.
While insurance fraud through animal tuition may be an outlier event, insurance fraud schemes have recently been uncovered many times greater than Bear-Man or Mize. In fact, these schemes are so large that they are responsible for significant premium increases for all insurance buyers.
The business line, which has been most affected by staged accidents, is commercial car liability insurance that covers truck fleets and trucking companies for body damage by third parties. Insurance fraudsters weigh on this product because damage (or alleged injuries) in accidents involving trucks and other commercial vehicles can be very serious, which justifies large courtroom prices or settlements. The most common scam is the staged accident, a la Mize.
This series of fraud involves a “Slams“There intentionally strikes a large truck with their vehicle. The car with a slamper has several passengers who are in Cahoots with lawyers archiving claims and litigation. Passengers are directed by the complicated advocates of medical service providers who are provided unnecessarily expensive surger who are overwhelmed for them, or do nothing except to produce phonic bills for serving. reached proportions, especially in New York and Louisiana. A recent case even involved murder Of a ring member turned around the FBI who investigated scam.
Staged accidents and the related practice of phantom injuries have long been sources of requirements for leakage for insurance companies. Phantom damage is the difference between the cost of invoiced costs and the cost of medical services actually provided. For example, a skewed medical facility can produce a bill for fictitious imaging and for more back surgeries in the six-figures, while no medical procedures were performed. In order for staged accident schemes to work, there must be cooperation between complicated lawyers, medical providers, the actors in the scheme and Masterminds. Such a complex scam was alleged in two recent racketeers -influenced and corrupt organizations (RICO) suits. One was the civilian lawsuit Brought on December 17, 2024 by the American Transit Insurance Company (ATIC) in the US District Court of Eastern District in New York. The plaintiffs sought $ 153 million in compensatory damage and $ 459 million in treble injuries. The 698-page suit by name 186 defendants. In January 2025 it was reported That 141 defendants agreed on settlements.
Separate, in January 2025, brought Riding Sharing Company Uber a 60-Siders suit Against three plaintiffs’ law firms, they claimed that they collided with medical providers to “utilize passengers in alleged or actual minor vehicle collisions and give them medically unnecessary and/or randomly undisclosed treatments.”
Insurance fraud is not sacrificial. The size of the schemes targeted at the recent Rico case shows that insurance fraud can be a large organized crime. When health insurance fraud, false turns and autumn and false workers’ compensation insurance fraud are added to commercial auto -svig, some Sources has estimated that over $ 300 billion in reported insurance claims is fraudulent.
As we reported in our past Article In the case of insurance fraud, primary research has found that older generations (45 years and over) have several compunctions to steal from insurance companies. Younger generations have fewer concerns about cheating allegations. But as the older generations grow older out of the workforce, they will be replaced by the younger cohorts that are more comfortable with tearing insurance companies.
Insurance fraudsters often justify their actions by calling them ”Victimless. “In addition to insurance companies deceived, the cost of insurance fraud is borne by honest insurance buyers whose premiums are driven higher to recover what was stolen. Hearings Discourage the limelight of the insurance value, the efforts to combat insurance fraud must be high on the list of political prescriptions.
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Fraud
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