Latest Fraud Headlines
All the headlines from our Fraud Topic Page, ordered by recency.
Allstate Files $5 Million Insurance Fraud Case in New York
Aug 24 2011 // Allstate Insurance Company is seeking to recover $5 million against 10 New York area defendants in its fourth insurance fraud lawsuit of 2011. Since 2003, Allstate has filed 31 fraud lawsuits in New York State, seeking...
Two Brothers Face Trial for Murder-for-hire Insurance Fraud Scheme
Aug 24 2011 // Opening statements are expected this week in the trial in Baltimore of two brothers accused of carrying out the killing of a blind and mentally disabled man as part of an insurance scam. Jury selection began on Monday in...
Allstate Launches Identity Theft Coverage in Calif.
Aug 23 2011 // Approximately 9 million Americans annually are victims of identity theft, spending millions of hours resolving problems associated with having their identity stolen. Allstate Insurance Co. has launched identity theft...
Washington Auto Glass Fraud Perpetrator Ordered to Pay
Aug 23 2011 // A Burien auto glass company owner who was sentenced for insurance fraud last week now has been ordered to pay more than $1.6 million in restitution to several insurance companies for the overbilling scam. Michael Alan...
Louisiana Man Gets Prison for Fraudulent BP Claim
Aug 22 2011 // A Houma man has been sentenced to one year in prison for fraudulently receiving money from the $20 billion claims fund that BP PLC established after the Gulf of Mexico oil spill. U.S. District Judge Jay Zainey also ordered...
California Lawyer Sentenced in Huge Auto Fraud Case
Aug 22 2011 // California Insurance Commissioner Dave Jones today announced that Susana Ragos Chung, 60, a Los Angeles area based attorney has been sentenced in Alameda Superior Court for Insurance Fraud. Chung entered pleas of no...
South Jersey Man Sentenced for Filing False Claim
Aug 22 2011 // A Cumberland County man was sentenced for filing a false vehicle theft claim. Casey M. Wendling, 28, of Millville, was sentenced to five years of probation by Superior Court Judge Benjamin Telsey in Cumberland Countyand...
Judge Rejects JPMorgan’s Bid to Dismiss Whistleblower’s Retaliation Claim
Aug 22 2011 // A Manhattan federal judge rejected JPMorgan Chase & Co.’s bid to dismiss a whistleblower lawsuit by a former private banker who said she was fired in retaliation for warning about a suspicious Israeli...
Prosecutors Want Jail for Rhode Island Radio Host for Insurance Fraud
Aug 22 2011 // Federal prosecutors are arguing against a home confinement sentence for a former Rhode Island radio disc jockey who damaged her North Providence house in a $40,000 insurance fraud scheme after last year’s historic...
Ironshore Launches Commercial Crime Coverage Through Pembroke Syndicate
Aug 16 2011 // Ironshore Inc.’s Lloyd’s Pembroke Syndicate 4000 has launched a commercial crime unit as an expansion of its financial lines operations. Sarah Markham has been named director of the new unit, reporting to...
Jury Acquits Boston Bodybuilding Firefighter of Fraud Charges
Aug 16 2011 // A Boston firefighter who claimed disability benefits due to a back injury but still competed as bodybuilder has been found not guilty of fraud by a federal jury. Albert Arroyo was acquitted on two counts of mail fraud by a...
Virginia ‘Guns in Bars’ Study Finds Little Effect on Crime
Aug 16 2011 // The number of gun crimes at Virginia bars and restaurants declined slightly during the first year of a new state law that allows people with permits to carry concealed firearms into establishments that serve alcohol, a...
La. Woman Pleads Guilty to Katrina Fraud
Aug 12 2011 // A Hammond woman pleaded guilty to fraudulently obtaining nearly $8,000 in disaster assistance from the American Red Cross after Hurricane Katrina. Thirty-year-old Tamara Morris faces a maximum sentence of 20 years in...
Ex – La. Bank Employee Pleads No Contest to Theft
Aug 12 2011 // A former Hammond bank employee has pleaded no contest to a charge of felony theft in connection with the diversion of funds that should have gone to people who had made early cancellations of insurance policies. Amite, La....
South Carolina Law to Curb Copper Theft Takes Effect Next Week
Aug 12 2011 // South Carolina law enforcement officers said they hope a new state law will cut down on thieves destroying air-conditioning units, farm equipment and other property to sell the copper inner parts for scrap. Most of the...
Illinois Bars Workers’ Compensation for State Employees Involved in Crimes
Aug 11 2011 // A new law inspired by a former Illinois State Police trooper’s high-speed freeway wreck that killed two sisters bars state employees injured while committing crimes from getting workers’ compensation. The...
UPDATE: Ex-Adjuster Pleads Guilty in Rhode Island Fraud Scheme
Aug 11 2011 // An ex-insurance adjuster who helped a former Rhode Island radio personality file a bogus home insurance claim last year pleaded guilty on Tuesday to his role in the scheme. In a deal with prosecutors, Vincent DiPaolo, 62,...
Ex-Insurance Adjuster to Plead Guilty in Rhode Island Fraud Case
Aug 10 2011 // An ex-insurance adjuster was set to plead guilty to charges he helped a former Rhode Island radio personality file a phony insurance claim for more than $40,000. Federal prosecutors said Vincent DiPaolo of Johnston was to...
AIG Sues BofA for $10 Billion, Alleges ‘Massive Mortgage Fraud’
Aug 8 2011 // Insurer American International Group (AIG) is suing Bank of America Corp. to recover more than $10 billion of losses from a “massive fraud” on mortgage debt, deepening the morass of litigation faced by the...
California Insurance Department Gives Grants to District Attorneys
Aug 5 2011 // California Insurance Commissioner Dave Jones today announced $3.2 million in grants to California District Attorneys aimed at combating fraudulent disability and health claims against insurance carriers and to protect...
