Fraud News

California Man Accused of Insurance Inspection Invoice Scam Nabbed

A California man was arrested in Arizona on charges that he scammed hundreds of people in three states in a fire insurance inspection scheme. Robert Musich, 46, was being held on bond following his arrest in Lake Havasu City. Musich, …

Johnson & Johnson Will Pay $7.8M to Settle Arkansas Lawsuit

Court filings show pharmaceutical giant Johnson & Johnson has agreed to pay $7.8 million to settle a lawsuit over how the company marketed an antipsychotic drug to Arkansas doctors. The Arkansas Democrat-Gazette reported $2 million will go to a Texas …

California Man Pleads Guilty to Setting Car Ablaze to Cash in on Insurance

Richard Peters, 36, of Lakeside, Calif., pleaded guilty to one felony count of insurance fraud after being arrested last week by the San Diego Urban Auto Insurance Fraud Task Force on suspicion that he set fire to his vehicle in …

CDI: True Religion Subcontractor Underreported $78M in Payroll

The owners of sewing companies subcontracted by True Religion Brand Jeans were arrested this week on 18 felony counts of workers’ compensation insurance fraud totaling more than $11 million in losses. Businesses Sung Hyun Kim, 57, and her sister Caroline …

California Agent Nabbed on Bogus Bond, $100K Premium Theft Charges

Licensed insurance agent Lars Hedegaard, 63, of Danville, Calif. was arrested on two felony counts of grand theft. Hedegaard was doing business as Westport &Associates Insurance Services Inc. when he allegedly issued 14 fraudulent bonds to contractors and collected $111,365 …

California Broker Nabbed for Pocketing More Than $500K From Safety Program

Arthur Cade, 60, a licensed insurance broker-agent in California, was arrested on three felony counts of grand theft for stealing more than $100,000 from a Los Angeles Unified School District program and more than $400,000 from other programs managed by …

Yellow Cab in Nevada Says Disabilities Suit Has it in Bad Spot

Yellow Cab Co. of Reno may have to file for bankruptcy if it’s ordered to pay excessive attorney fees after a federal judge found it violated the Americans with Disabilities Act by denying service to a disabled woman with a …

Idaho Man Sentenced For Insurance Fraud Against Progressive

An Idaho Falls, Idaho man has been sentenced for filing false car insurance claims. The Idaho Attorney General’s Office says Robert C. MacNeilage was sentenced last week to an intensive treatment and education program at a minimum-security prison, with an underlying …

California Suit: Lyft Cheated New Drivers Out of $1K Bonuses

The Lyft ridesharing company took new drivers for a ride by cheating them out of promised $1,000 bonuses, according to a federal lawsuit . Hundreds of drivers lost a total of at least $5 million worth of bonuses that were …

Ex-Oppenheimer Exec Admits to Role in Sinking Oklahoma Insurer

A former Oppenheimer & Co. Inc. executive pleaded guilty to participating in a fraud that the U.S. says led to the collapse of an Oklahoma insurance company. Allen Reichman, 55, told a Manhattan judge that he and former Park Avenue …