27 Arrested in Pennsylvania’s Statewide Insurance Fraud Sweep

September 25, 2014

Pennsylvania’s Attorney General Kathleen G. Kane announced this week the arrest of 27 individuals across the state for a variety of unrelated insurance fraud offenses.

The recent sweep was the result of investigations by the Office of Attorney General’s Insurance Fraud Section, the largest law enforcement entity in Pennsylvania with specific authority to investigate and prosecute such crimes.

“Insurance fraud is one of the most costly white-collar crimes in America today, with estimated losses in the billions of dollars annually,” Kane said. “This sweep demonstrates the severe penalties for committing these crimes, which increases costs for everyone, including seniors.”

The arrests announced on Sept. 22 involve some of the most common types of insurance fraud.

Among those arrested are two men from Trenton, New Jersey, who allegedly conspired to set a car on fire in Bucks County in order to defraud an insurance company of $25,000; three individuals from Western Pennsylvania accused of obtaining thousands of prescription painkillers by forging prescriptions; and a woman from Union County who allegedly earned more than $21,000 working as a private caregiver, while claiming to be totally disabled and receiving more than $38,000 in disability benefits. A person charged with a crime is presumed innocent until proven guilty.

In 1994, legislation was enacted in Pennsylvania establishing the Insurance Fraud Prevention Authority (IFPA) and a Fraud Trust Fund. All insurance companies authorized to transact business in Pennsylvania pay an annual assessment into the fund. The funds provide financial support to the Insurance Fraud Section and other law enforcement agencies to support insurance fraud investigations and prosecutions.

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