Why on earth would a company issue a 2nd check before making sure the first didn’t clear; if it didn’t clear, stop payment!
They were duped on the first one, but shame on them for the second one!
This guy went through all of the trouble to pick out a house, use fake accounts and blah blah blah to collect a measly $3,200? Allstate issued ANOTHER check before cancelling the old one in case it did ‘show up’. AND just took the guys word for it on a claim of more than $1,000? Where was an estimate? Documents proving damage?….What state did this happen in? Louisiana?
It is certain that the first check was stop-pay’ed but only a bank would be able to see that. Both checks were cashed at local businesses. The claim was probably settled on the strength of a bogus estimate for repair and was below the threshold where we want to spend $$ sending out field personnel to inspect the damage.
The real question is, why was the policy not termed without coverage if the down pay was not honored?
So this is how All State reduces their cost so they can pass on the savings to us, who are in their hands? Shame on them for being so stupid! They better take a good look at this, as my grnadmother told me, pennies add up to dollars, if you save enough of them.
The bank may be the only one to see it, but you can contact the bank and verify if one of your company checks has cleared or not and stop payment before the second
check is issued.
But does it make sense to send someone out to inspect every claimed loss less than $2,000? You end up bumping your claims expense to catch very little in benefit. We are watching our pennies but wish we’d caught this one earlier. As to the first check, whether it is cashed or not, if it is stop-pay’ed, it is not honored at the bank. The business who cashed it without verifying is holding the bag on that one.
The treat here is that apparently, although Mr. Edwards picked out a house at random, he used his real ID to buy the policy, pursue the claim, and cash the checks. Idiot.
Sorry, didn’t read your post thoroughly before responding. I am reasonably certain that the first check WAS stopped. Who wouldn’t before reissuing?
Stopping payment does not recover the actual check from the idiot. He simply took the dead check to a business and was able to talk them into cashing it.
GOOD HANDS … ok I will give you that one on the check, but before I would insure a house, I would make sure the person buying the insurnace has a property right to the damages. If he did not own the house, he had no loss. Dot your “i”s and cross your “t”s or is business so good you can just give away money this way? Oh yes, you can pass on the cost to your customers, I forgot.
Why on earth would a company issue a 2nd check before making sure the first didn’t clear; if it didn’t clear, stop payment!
They were duped on the first one, but shame on them for the second one!
Why didn’t they check the alledge damage to the garage first, before writing the first check? Thats what I wanna know.
This guy went through all of the trouble to pick out a house, use fake accounts and blah blah blah to collect a measly $3,200? Allstate issued ANOTHER check before cancelling the old one in case it did ‘show up’. AND just took the guys word for it on a claim of more than $1,000? Where was an estimate? Documents proving damage?….What state did this happen in? Louisiana?
It is certain that the first check was stop-pay’ed but only a bank would be able to see that. Both checks were cashed at local businesses. The claim was probably settled on the strength of a bogus estimate for repair and was below the threshold where we want to spend $$ sending out field personnel to inspect the damage.
The real question is, why was the policy not termed without coverage if the down pay was not honored?
I’m guessing he used the phony acct number on the policy application docs, but paid the down payment via credit card (unlikely!) or a money order.
To Ur Name: the headline says it all: “New York Police Arrest Man in Phantom Insurance Claim Scheme”
So this is how All State reduces their cost so they can pass on the savings to us, who are in their hands? Shame on them for being so stupid! They better take a good look at this, as my grnadmother told me, pennies add up to dollars, if you save enough of them.
The bank may be the only one to see it, but you can contact the bank and verify if one of your company checks has cleared or not and stop payment before the second
check is issued.
But does it make sense to send someone out to inspect every claimed loss less than $2,000? You end up bumping your claims expense to catch very little in benefit. We are watching our pennies but wish we’d caught this one earlier. As to the first check, whether it is cashed or not, if it is stop-pay’ed, it is not honored at the bank. The business who cashed it without verifying is holding the bag on that one.
The treat here is that apparently, although Mr. Edwards picked out a house at random, he used his real ID to buy the policy, pursue the claim, and cash the checks. Idiot.
Sorry, didn’t read your post thoroughly before responding. I am reasonably certain that the first check WAS stopped. Who wouldn’t before reissuing?
Stopping payment does not recover the actual check from the idiot. He simply took the dead check to a business and was able to talk them into cashing it.
GOOD HANDS … ok I will give you that one on the check, but before I would insure a house, I would make sure the person buying the insurnace has a property right to the damages. If he did not own the house, he had no loss. Dot your “i”s and cross your “t”s or is business so good you can just give away money this way? Oh yes, you can pass on the cost to your customers, I forgot.