See the full video at https://youtu.be/sI8DLTvp9ZA  Insurance fraud is not limited to fraud by insured persons against their insurance companies. To the great shame of the insurance industry, the reverse is also happening.
The poster child to the fraud from an insurance company was Martin Frankel who created a system that he committed suicide to "plunder" more than $ 200 million from seven insurance companies he controlled. Franklin American Corporation and its wholly owned subsidiary Franklin American Life Insurance Company were controlled by another entity, a Tennessee trustee called the Thunor Trust. Trust acquired a 85% stake in Franklin American in 1991. In the following years, Thunor Trust acquired five other insurance companies based in the states of Mississippi, Missouri and Oklahoma.
Between 29 June 1999 and 14 January 2000, the above-mentioned insurance companies were ordered to be wound up by the courts of the four States in which they resided. Martin Frankel, the man alleged to have controlled a financial empire that included insurance companies, a securities firm, a non-profit foundation and the Thunor Trust, was indicted in both state and federal courts for fraud, criminal conversion and alleged plundering at least $ 215 million from insurance companies' assets.
Frankel's plan to defraud the insurance companies, the insured and its investors began in 1991, lasted for almost ten years, involved the participation of dozens of co-conspirators and ultimately. resulted in the insolvency of insurance companies. In general terms, the system worked as follows:
Frankel gained control of the insurance companies and once controlled, he placed two of his co-defendants in powers as CEO and CFO respectively. These respondents then stole the insurance companies' money through a series of financial transactions. To commit his fraud without detection, Frankel created scam companies, used alias identities and had many addresses for fake companies and identities. These respondents transferred the money from the insurance companies to banks or brokerages in the United States and from there they transferred the money to foreign banks, usually in Switzerland. They then transferred the money back to the United States, where it was converted into traceable cash for their own use and to finance their fraudulent system.
Frankel was convicted of several crimes. He appealed his conviction and the following decision followed his conviction. The decision of the second circle confirming his conviction follows in its entirety. Catalog
© 2020 – Barry Zalma
Barry Zalma, Esq., CFE, now limits his practice to working as an insurance consultant specializing in insurance coverage, insurance claims management, insurance claims and insurance fraud almost equal insurance . He also acts as an arbitrator or mediator for insurance-related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims lawyer and more than 52 years in the insurance industry. He is available at http://www.zalma.com and firstname.lastname@example.org.
Mr. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award.
For the past 52 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurers and their claims staff to become insurance claims staff.
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