Fraud News

Phantom Collisions Result In Multiple Arrests in California

Joel Paredes Saldana, 22, owner of Lightning Auto Body in Riverside County, was arrested Wednesday as California Department of Insurance detectives and multiple allied agencies swept up at least 19 co-conspirators associated with an organized insurance fraud crime ring. Those …

BP Claim Investigator: Louisiana Fisherman Should Repay $50K

A court-appointed investigator says a Louisiana fisherman should return more than $50,000 in BP oil spill claim money. Louis Freeh, the former FBI director appointed to investigate claims arising from the 2010 disaster, filed a federal court motion to force …

Kia’s Dancing Hamster Nabbed in California on Insurance Fraud

Leroy Barnes, 27, of Los Angeles, known as one of the dancing hamsters in Kia car commercials, was arrested on insurance fraud charges related to his alleged fraudulent collection of state disability insurance benefits. Barnes is suspected of deceiving his …

Arrests in California Fraud Ring Targeting Auto Dealers and Insurers

A four-year investigation into an organized fraud ring has uncovered a million-dollar scheme targeting high-end vehicles through auto loan and insurance fraud has led to several arrests, according to the California Department of Insurance. CDI said it executed coordinated arrest …

Rescission Decision Averts $43M in Damages in California Case

Attorneys representing Liberty Mutual Insurance Co. averting what could have been a $43 million payout in damages this week characterized the California court case a cautionary tale for insurers. The case is Heide Kurtz v. Liberty Mutual Ins. Co., et al., and …

Southern California Agent Sentenced For Ponzi Scheme

Michael Zuno Zuniga, 43, of Fullerton, was sentenced to five years in Los Angeles County Jail and ordered to pay $1.2 million in restitution for his participation in a Ponzi scheme targeting Los Angeles area seniors. Zuniga was arrested in …

Iowa Revokes Insurance, Securities Licenses of Illinois Producer

Iowa Insurance Commissioner Nick Gerhart has revoked the insurance producer license and securities agent license of Deanna R. McClean of Rock Island, Ill., state insurance regulators announced. McClean is also permanently barred from reapplying for those licenses or applying for …

Texas Insurance Agent Sentenced to 4 Years for Premium Theft

A Houston-area insurance agent whose company included the word “integrity” in its name has been sentenced to four years in prison for stealing from about 40 clients. A judge in Galveston sentenced Christopher Vernon Murphy in a plea agreement and …

Mass. Biz Owner Charged in Connection With Workers’ Comp Fraud

Massachusetts Attorney General’s office announced a Lowell, Mass., businessman has been indicted on charges he failed to accurately report his total payroll and number of employees and understated the number of jobs associated with his business to avoid paying thousands …

North Carolina Motorist Arrested for Alleged Auto Insurance Fraud

North Carolina Insurance Commissioner Wayne Goodwin announced Wednesday the arrest of Tenquisha Shancaza Durham of Gastonia, N.C. She was charged with one count each of insurance fraud and obtaining property by false pretense. North Carolina’s Department of Insurance criminal investigators …