Tag Archives: Insurance Fraud

UPDATE: Ringleader Pleads Guilty To His Role In $23 Million Auto Insurance Fraud Crime Ring

Andrew Rubinstein of Miami and the self-confessed ringleader, Felix Filenger of Sunny Isles pleaded guilty to a racketeering conspiracy charge last year. Rubinstein and Filenger were paying kickbacks to tow truck drivers and body shop workers who illegally steered accident victims to chiropractic clinics they owned at a rate of $1,500 to $2,000 per “patient.” Clinic workers would then have patients attend multiple visits, document exaggerated pain levels, and bill insurance providers for treatment in the amount of $10,000, the maximum allowed under Florida law.

According to Prosecutors, the clinics were located throughout south and central Florida, including Sunrise, Hollywood, Hallandale Beach, Pompano Beach, Delray Beach, West Palm Beach, Miami, Orlando and Kissimmee.

Under the terms of his plea agreement, both sides had agreed to recommend the six-year sentence for Rubinstein. Filenger’s sentencing has been postponed. Several other people who also admitted their roles in the fraud are scheduled for sentencing later this year.

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Filed under Auto Insurance Fraud, Florida, Fraud, Insurance, Insurance Fraud, Personal Injury Protection, PIP, PIP/No Fault

Two Miami Medical Clinics Raided for Staged Accidents & Insurance Fraud

Florida’s Department of Investigative and Forensic Services Bureau of Insurance Fraud and the Miami Police Department raided two South Florida medical clinics accused of paying for patients and fraudulent billing. Both clinics have been under investigation since early 2017 for recruiting people for staged accidents and billing insurance companies for thousands of dollars in treatments that they were not providing.

According to Captain Emissael Díaz of Florida’s Bureau of Insurance Fraud “Just in South Florida alone, most of your rates are going to go up 20 to 25 percent just because of the insurance fraud.” The captain stated that schemes of this kind are the reason insurance rates are going in South Florida.

The suspects taken into custody are facing several charges, including patient brokering, insurance fraud and grand theft.

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Filed under Florida, Florida Division of Insurance Fraud, Insurance, Insurance Claims, Insurance Fraud, Miami-Dade County, Miami-Dade Fraud

Palm Beach Post Receives National Recognition for Insurance Fraud Coverage

Washington-based policy and research group, Coalition Against Insurance Fraud, has awarded its inaugural journalism award for fraud reporting to The Palm Beach Post for its work on fraud in the sober-home industry. The award honored Post coverage dating back to 2015 when Post investigators Christine Stapleton and Pat Beall first wrote about how sober-home operators were defrauding insurers of millions of dollars for urine drug tests.

Sober homes were requiring residents to be tested every day, creating multimillion-dollar business empires. Palm Beach County treatment centers and affiliated labs were charging as much as $2,000 for urine tests that can be purchased for $25 at a drug store.

In 2016, a team of Post reporters and editors, including Stapleton, Beall, Lawrence Mower, Joe Capozzi, John Pacenti, Barbara Marshall and Mike Stuck produced “Heroin: Killer of a Generation,” a 12-page special section of stories about 216 men, women and teenagers who died of a heroin-related overdoses in Palm Beach County in 2015. One in 10 had died in a sober home.

The Post’s reporting played a role in the prosecution of sober-home operators Kenneth Chatman and Eric Snyder as well as the successful push to tighten state laws which have resulted in more than 40 people on charges related to brokering patients.

Congratulations to the Palm Beach Post on this national recognition for their work in fighting insurance fraud.

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Filed under Florida, Insurance, Insurance Fraud, Palm Beach County

Florida Man Arrested for False Insurance Claim

Insurance Journal has reported that a Florida man, Claude Milhomme, was arrested for attempting to file a false insurance claim for his vehicle. According to the Department of Financial Services’ Disaster Fraud Action Strike Team (DFAST), Milhomme filed a claim in September stating water damage to his vehicle caused by Hurricane Irma in the amount of $225 for a diagnosis, after hours fee and storage fee.

DFAST received a suspected fraud tip about one month later. After an inspection by state investigators, it was revealed that Milhomme’s vehicle was mechanically inoperable prior to Hurricane Irma’s landfall in September of 2017.

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Filed under auto insurance, Auto Insurance Fraud, Florida, Insurance, Insurance Claims, Insurance Fraud

UPDATE – Pilot Theodore R. Wright III Pleads Guilty to Insurance Fraud

UPDATE – Pilot Theodore R. Wright III Pleads Guilty to Insurance Fraud

According to KLTV 7 of Texas, Theodore R. Wright III, the well-known pilot who survived a 2012 Gulf of Mexico crash and used an iPad to record his time in the water, has pleaded guilty to conspiring to commit wire fraud and conspiring to commit arson. Wright and three others also pleaded guilty to buying, over-insuring and ultimately destroying planes, boats, and cars to collect cash.

In May 2017, the Wright and his co-conspirators, Shane Gordon, Raymond Fosdick, and Edward Delima were charged with using fire to commit a felony and aiding and abetting, arson of property used in interstate or foreign commerce or used in an activity affecting interstate or foreign commerce, conspiracy to commit wire fraud, and wire fraud.

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Filed under Insurance, Insurance Claims, Insurance Defense, Insurance Fraud

Judge Dismisses Lawsuit of Injured NJ Driver Who Maintained FL Insurance Policy

A New Jersey judge has ruled that Jeffrey Scholes, a man living in New Jersey but driving a car registered and insured in Florida, may not sue another New Jersey driver for injuries he sustained in a car accident. Judge Patrick Bartels of Essex County Superior Court dismissed Scholes’ personal injury lawsuit against defendant Stephen Hausmann on Oct. 24 citing that it would be a violation of the state’s automobile insurance statutes as Scholes fraudulently maintained a Florida automobile insurance policy while living in New Jersey.

Bartels noted that Scholes had been living and working in New Jersey since 2009 but maintained a Florida insurance policy issued by GEICO, registered his car there and had a Florida driver’s license because it was more cost-effective.

According to the ruling, Scholes was “severely injured” when he was struck head-on by Haumann’s car on Oct. 23, 2014, in South Orange. Although Scholes sustained back injuries that required epidural injections and surgery, Hausmann moved to have Scholes’ lawsuit dismissed on the grounds that New Jersey law requires that people who live in the state and who have a car here must maintain New Jersey car insurance.

Bartels agreed. “[W]e agree that plaintiff’s automobile is not considered insured pursuant to New Jersey law,” he said.

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Filed under auto insurance, Auto Insurance Fraud, Florida, Insurance, Insurance Fraud, New Jersey, PIP

Panama City Woman Sinks SUV for Insurance Money

According to the Panama City News Herald, 65-year-old Debra Jenkins has been arrested and charged with insurance fraud after having her SUV driven into a lagoon and pretending that the vehicle was stolen. The police had reportedly found a stick inside the vehicle on the driver’s floorboard which appeared to be purposely placed there to hold the gas pedal after the car was removed from the water. Video evidence from Jenkins’ neighbor also showed her SUV leaving her home together with another SUV, then only the second SUV returning that night with two people inside.

Jenkins later admitted to deputies that she and a friend had devised the plan to get rid of the vehicle and claim insurance money.

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Filed under Auto Insurance Fraud, Florida, Insurance, Insurance Claims, Insurance Fraud

Florida Man Caught Staging Crash on Dashcam

According to the Sun Sentinel, a Florida man was arrested on Friday, October 6th in connection with an alleged staged crash that occurred in December of 2016. 65-year-old Mauril Aldophe of Delray Beach plotted to force a tow truck to rear-end him. Unfortunately for Mr. Aldophe, the tow truck was equipped with a dashcam capturing footage of him abruptly stopping for no apparent reason and then driving forward for several feet, throwing his car into reverse, and then slamming back into the tow truck.

According to investigators, Mr. Aldophe went to a medical clinic three days after the incident and filed a personal injury claim stating a truck had rear-ended him while he was stopped at a red light.

Mr. Aldophe now faces charges for insurance fraud and participation in an intentional crash.

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Filed under Auto Insurance Fraud, Florida, Insurance Claims, Insurance Fraud, Personal Injury Protection, PIP, PIP/No Fault

Insurance Agent Allegedly Sold Fraudulent Insurance Policy

According to the Palm Beach Post, Fred Thomas Jr., 39, is facing charges of fraud and embezzlement between $300 and $2,000 after he allegedly sold a Palm Beach County woman fraudulent/fake car insurance during a three-year period. Thomas was arrested by the Florida Highway Patrol on Interstate 95 for driving with a suspended license when the trooper found an active warrant for Thomas in the insurance fraud case.

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Filed under auto insurance, Auto Insurance Fraud, Florida, Insurance, Insurance Fraud, Palm Beach County

Pilot Theodore R. Wright III Faces Decades in Prison for Insurance Fraud

As reported by Flying Magazine, rising social media star Theodore Robert Wright III who gained notoriety for chronicling his larger-than-life flying exploits in photos on Facebook and Instagram has been charged with intentionally crashing his plane into the Gulf of Mexico to collect insurance money. Wright is facing serious prison time after federal law enforcement officials charged the 32-year-old with multiple counts of insurance fraud.

Wright and three associates (Shane Gordon of Texas, Raymond Fosdick of South Carolina, and Edward Delima of Hawaii) are charged with being involved in the destruction of a 1971 Cessna Citation, a Lamborghini Gallardo and a luxury sailboat in Hawaii, all to collect insurance payouts.

That’s not where the alleged fraud ended, prosecutors say. In an indictment filed in U.S. District Court in Tyler, Texas, Wright and three associates are charged with multiple felonies. Besides the Baron, officials say Wright was involved in the destruction of a 1971 Cessna Citation, a Lamborghini Gallardo and a luxury sailboat in Hawaii, all to collect insurance payouts. Prosecutors allege the men would acquire vehicles, insure them, destroy the vehicles and then collect the insurance money, a conspiracy that lasted from March 2012 to March 2017, according to the indictment.

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Filed under Insurance, Insurance Claims, Insurance Fraud