See the full video at https://rumble.com/vzobk5-true-crime-of-insurance-fraud-video-number-48.html?mref=6zof&mrefc=2 and at https://youtu.be/8ynSe- dqhjQ
Barry Zalma, Esq., CFE presents videos so you can learn how to commit insurance fraud and what it takes to discourage or defeat insurance fraud.
The failed fire construction contractor
Fire reconstruction is a competitive trade. Work, reconstruction of burned-out companies, commercial structures and housing require specialized skills. Receiving payment from insurance companies for this specialized work requires a sociable personality, a talent for marketing and the skill to perform the work to perfection.
Willis Rafter was not sociable, had no talent for marketing and was a sloppy and unqualified builder. For Willis to be successful as a fire construction contractor, imagination and a lack of morale were required. Willis found that he had to get a construction job due to his lack of skill. He never got repeat business. He was counting on bankruptcy.
Rafter Construction was dying. His best friend in the industry, an adjuster, advised him to tell the adjuster that he will give you 10% of the next job I bid he will get the job. will I get it? “
“Of course, stupid, I thought you would never catch up.” Louise replied, giggling.
He found, although slightly more expensive, additional sources of consultation in the community of public insurance adjusters. When he received referrals from them, he found it necessary to increase his unit costs to cover the extra fee. Rafter Construction became a power in the fire reconstruction industry in his community. He had ten estimators working for him and always worked on four to ten construction projects that lasted twelve months a year. He cursed his own stupidity for not learning the simple fee-based method of getting business.
Louise, as his best friend in the industry – the person who taught him how to succeed – always received an annual bonus of $ 5,000.
Willis was shocked when, after a routine IRS audit – six years into his business career as a successful fire construction contractor – he was arrested for tax evasion. The IRS concluded that because payments to adjusters and supervisors were illegal in California [a violation of California Penal Code § 550] he could not deduct them as business expenses.
Insurance fraud is quite simple. Willis, by paying 10% bribe to adjusters, saved his business. Although it was not a major criminal, like Al Capone, his plan was terminated by the IRS because they found that he deducted the bribes as a business expense.
(c) 2022 Barry Zalma & ClaimSchool, Inc.
Barry Zalma, Esq., CFE, now limits his internship to the position of insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He practiced law in California for more than 44 years as a lawyer for insurance coverage and claims management and more than 54 years in the insurance industry. He is available at http://www.zalma.com and firstname.lastname@example.org.
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