California Sentences Razor Fraud Man

September 21, 2009

California Insurance Commissioner Steve Poizner has announced that Larry Butler, 40, of Palmdale, was convicted of insurance fraud, grand theft and perjury. He was sentenced on September 15 to serve 14 years and 4 months in state prison.

“Committing insurance fraud to make an extra buck is never a smart idea,” said Commissioner Poizner. “CDI detectives are quick to catch fraud perpetrators and help put them behind bars, where they belong.”

The Department of Insurance launched an investigation after receiving a complaint that Larry Butler allegedly filed multiple small claims court claims against several razor manufacturers for the same injury. Butler claimed that razors, manufactured by Phillips, Proctor & Gamble, Eveready/Energizer and Panasonic, during a five-month period, caused him to have ingrown hairs, which scarred his face. In support of his claims, Butler submitted the identical photographs of the alleged injury and the same receipt and price quote for dermatological treatment to all companies. Butler collected $9500 from the companies, who are self-insured, as a result of his fraudulent claims. One company suspected that Butler filed the claim fraudulently, and reported this to the Department of Insurance.

The Los Angeles County District Attorney’s Office prosecuted this case.

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