Bankruptcy fraud defeats legitimate insurance claims
See the full video at https://rumble.com/v1572mx-true-crime-of-insurance-fraud-video-number-76.html?mref=6zof&mrefc=3 and at https://youtu.be/ua3cLByciDc
Insurance fraud, like all other professions, improves with practice. The beginner, unaware of the tools available to an insurer, makes a stupid mistake that will ruin him or her.
Abraham MacPherson was a beginner in insurance fraud. He had easily managed to defraud his bank by submitting a false financial statement as part of the loan application. He even convinced an FBI agent who was investigating his fraudulent loan application that he was the victim of a dishonest loan broker. Success made Abraham bold. He decided it was time to dump her and move on.
The bankruptcy petition, like most of the bankruptcy lawsuits, showed that MacPherson had no equity in any of his property and no money. He reported his assets as only $ 500 in jewelry and tools for his plumbing business because they were exempt from his creditors’ grip. What he did not tell the bankruptcy court was that MacPherson also owned a $ 150,000 twin-engine Cessna Aircraft that he used to go hunting and skiing. He did not tell his lawyer about the plane because he did not want it sold for the benefit of the creditor he believed was cheating him.
The day his debts were paid, Abraham called his insurance broker. He informed the broker that his home had been broken into. He claimed that the burglars took all the jewelry on the schedule. He immediately demanded the issuance of a check for $ 41,960.
MacPherson stuck to his story. He demanded immediate payment otherwise he would complain to the California Department of Insurance and sue.
Moseby reported to its principal, the insurer, who decided to deny the claim for fraud. Furthermore, in accordance with the law, since MacPherson had admitted bankruptcy fraud, the insurer instructed Moseby to pass on the information he had received to the FBI. In addition, required by California law, he presented the information to the California Department of Insurance, Fraud Division.
Moseby was right, MacPherson had no problem with him. He simply would not enforce his claim. MacPherson had serious problems with the FBI and the US Department of Justice.
The Federal Bureau of Investigation’s special agent was outraged that MacPherson had cheated on him. After verifying the results of Moseby’s investigation, the FBI presented the information to an American lawyer. Prosecution followed and accused MacPherson of bankruptcy fraud, postal fraud – for submitting a false and fraudulent claim to an insurer through the use of the US Postal Service – and for loan fraud.
He went to court in the U.S. District Court in Sacramento on charges of bankruptcy fraud. The trial took five hours to complete and the jury was instructed on the law at 4 p.m. They pondered for three days and sentenced MacPherson, who was sentenced to three years in federal prison.
It does not pay to lie to an insurance company about a claim. If you do, you could lose your claim. It’s worse to lie to a bankruptcy court because it’s a federal crime that can put the liar in jail for as much as five years. This case proves why it is best to always tell the truth.
(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.
Subscribe to Zalma on Insurance at locals.com https://zalmaoninsurance.local.com/subscribe.
Subscribe to Excellence in Claims Handling at https://barryzalma.substack.com/welcome.
Write to Mr Zalma at email@example.com; http://www.zalma.com; http://zalma.com/blog; daily articles are published at https://zalma.substack.com. Go to the podcast Zalma On Insurance at https://anchor.fm/barry-zalma; Follow Zalma on Twitter at https://twitter.com/bzalma; Go to Barry Zalma videos on Rumble.com at https://rumble.com/c/c-262921; Go to Barry Zalma on YouTube https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to the Insurance Claims Library – https://zalma.com/blog/insurance-claims-library/