See the full video at https://rumble.com/v14ysrv-true-crime-of-insurance-fraud-video-number-74.html and at https://youtu.be/JfjQ7CCiY4k
Investing in real estate in California in the 1980s was fun. Whatever you bought, you can sell for more. The doctrine: “there is always a greater fool than I”, worked.
Li Chen Hua immigrated to California from Hong Kong in 1981. He did it legally and won a green card lottery. He came to the United States with his savings (converted from Hong Kong dollars to diamonds to facilitate transportation).
Li settled in a condominium on Wilshire Boulevard just west of the community called Westwood and east of Beverly Hills. It only cost him $ 500,000. He bought three other apartments in the same building the first year and paid his mortgages and living expenses from the rent he collected.
In 2008, the bottom fell out of the California real estate market. Li, found himself owning properties mortgaged to over $ 14,000,000 but worth only $ 9,000,000. The rents he collected were not enough to pay the various mortgages and allow him to continue in the lifestyle he had become accustomed to. He needed to make a lot of money fast and then leave his mortgagees to fend for themselves and return to Hong Kong for a nice pension.
Mr Li’s cousin was the leading dealer in luxury cars throughout the People’s Republic of China. She had no competition, an almost unlimited range of vehicles and overheads limited to shipping costs. Li’s account at CitiBank, Hong Kong grew. He invested his savings in broad equity funds that specialize in high-risk growth markets. His investments doubled in two years.
Li decided it was time to dump her and move on. He was about to send his proger Parsons, the claims supervisor at Massive and Stoney Insurance Company, who was looking out his window at the slowly moving, brown river Illinois, was about to order a check for the settlement when he received a report from the NICB that the car had been sent of Li to Hong Kong one month before the reported theft. Customs officers in Hong Kong reported that the car arrived and was picked up by its recipient. The NICB had copies available of the shipping documents with Mr. Lis’ signature.
Massive and Stoney kept advice to investigate Li under oath of theft. Li and his lawyer showed up at Massive’s law firm and demanded immediate payment of a legitimate insurance claim.
Mr. in Len Shyster, Lis Advocate.
The examination under oath was not completed. Using his testimony in the NICB investigation, in collaboration with Massive and Stoney and fifteen other insurance companies, the California Highway Patrol, the U.S. Customs Service and the Fraud Division of the California Department of Insurance led to a larger arrest of 41 people, including Li, for insurance fraud, aggravated theft and fraud against lenders. A ring of insurance criminals earning hundreds of millions of dollars from insurance companies across the United States was stopped because one of the criminals allowed his customs broker to register the VIN number of his car before it was shipped out of the United States.
Li, the instigator of the fraud, testified against his co-conspirators. He served six months in electronic confinement in his penthouse and paid $ 250,000 in compensation to an insurer.
He now lives a comfortable retirement in Hong Kong.
The state should be proud that they brought down a massive insurance fraud system, but because they needed him, Li retired a rich man to Hong Kong. He may regret it now that the Communist Party has taken over Hong Kong.
(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 zalma@zalma.com.
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