by MaxHerr » Thu Apr 22, 2010 11:19 am
Thinking of committing auto insurance fraud? Read on . . .
Commissioner Poizner Announces Eight Arrests in San Diego Staged
Auto Accident Insurance Fraud Ring Bust
Insurance Commissioner Steve Poizner announced today the arrests of eight suspects in connection with an auto fraud ring case. The individuals arrested under Operation Hit and Run are suspected of faking traffic collisions and filing fraudulent personal injury claims with insurance companies. Since October 2009, 11 suspects were arrested in connection with this fraud ring.
"Criminals who involve themselves in elaborate and dangerous schemes to make an extra buck are endangering their own lives and the lives of other drivers," said Commissioner Poizner. "I am pleased with the hard work of CDI investigators and fraud task force members who uncovered this fraud ring."
On April 21, the San Diego Automobile Insurance Fraud Task Force arrested eight suspects. The arrests relate to a series of staged accidents where suspects faked traffic collisions, were transported to a local hospital for treatment and filed personal injury claims with the insurer. Based on arrest warrants obtained on October 29, 2009, the San Diego Automobile Insurance Fraud Task Force arrested a total of 11 defendants in relation to this investigation and charged 83 felony counts.
The arrests are tied to five separate staged traffic collisions. The collisions all have a similar fact pattern of a vehicle being struck by an abandoned vehicle that was previously reported stolen. The suspects to be arrested are all connected by family relationships, police contacts, and connections to the primary suspect in this case, Jay Stoney Anderson.
In all five traffic collisions, there were identical motives and facts of loss. The collisions were allegedly staged and police were called to the scene. When the police arrived, the vehicle at fault was always determined to be abandoned at the scene and had previously been reported stolen by the registered owner. In each case, the suspects claimed to be injured and were transported via ambulance to a local emergency room for treatment. The suspects each filed personal injury claims with the insurer and failed to reimburse the hospital for the outstanding bill. The total loss in this case exceeds $200,000.
CDI launched an investigation when Liberty Mutual Insurance Company and Progressive Insurance Company notified the Department of possible fraud. The Special Investigation Units of these companies met with representatives of the San Diego Automobile Insurance Fraud Task Force to share information. The information provided later identified a criminal ring suspected of staging more than eleven collisions over a one-year period. Additional information in support of this investigation was provided by Special Investigation Units from Republic Western Insurance Company, AIG, 21st Century Insurance Company, GEICO Insurance, and Nationwide Mutual Insurance.
The comprehensive investigation revealed multiple alleged connections between the suspects and Jay Stoney Anderson and the abandoned vehicles. In two of the collisions charged, the suspects allegedly used a rented U-Haul that was later reported stolen and used to stage the traffic collisions.
Suspects arrested on April 21:
NAME ANTICIPATED CHARGES REQUESTED BAIL
Frank Torbert III PC 550(a)1,3,4,(b)1 $100,000
George Thomas PC 550(a)1,3,4,(b)1 x 2, (b)1 / PC 667(e)2(A)
Prison Prior Enhancement $250,000
Jiaire Martin PC 550(a)1,3,4,(b)1 x 2 $200,000
Michael Jones PC 550(a)1,3,4,(b)1 / PC 667 (e)2(A)
Prison Prior Enhancement $225,000
Rodney Martin PC 550(a)1,3,4,(b)1 x 2 / PC 667.5(b)
Prison Prior Enhancement $220,000
Tamar Bradley PC 550(a)1,3,4,(b)1 $100,000
Wade Bradley PC 550(a)1,3,4,(b)1 / PC 667 (e)2(A)
Prison Prior Enhancement $225,000
Shareese Spence PC 550(a)1,3,4,(b)1
The San Diego District Attorney's Office is prosecuting this case. All suspects are expected to be arraigned in San Diego Superior Court.
The San Diego Automobile Insurance Fraud Task Force is made up of members from the California Department of Insurance, San Diego District Attorney's Office, California Highway Patrol-Border Division, and the National Insurance Crime Bureau.
Commissioner Poizner oversees sixteen CDI Enforcement Branch regional offices throughout the state. Nearly 2,800 insurance fraud-related arrests have been made by CDI since Commissioner Poizner took office in 2007 - more arrests than have been made during any other three year period, under any previous insurance commissioner.
Commissioner Poizner Announces Eight Arrests in San Diego Staged
Auto Accident Insurance Fraud Ring Bust
Insurance Commissioner Steve Poizner announced today the arrests of eight suspects in connection with an auto fraud ring case. The individuals arrested under Operation Hit and Run are suspected of faking traffic collisions and filing fraudulent personal injury claims with insurance companies. Since October 2009, 11 suspects were arrested in connection with this fraud ring.
"Criminals who involve themselves in elaborate and dangerous schemes to make an extra buck are endangering their own lives and the lives of other drivers," said Commissioner Poizner. "I am pleased with the hard work of CDI investigators and fraud task force members who uncovered this fraud ring."
On April 21, the San Diego Automobile Insurance Fraud Task Force arrested eight suspects. The arrests relate to a series of staged accidents where suspects faked traffic collisions, were transported to a local hospital for treatment and filed personal injury claims with the insurer. Based on arrest warrants obtained on October 29, 2009, the San Diego Automobile Insurance Fraud Task Force arrested a total of 11 defendants in relation to this investigation and charged 83 felony counts.
The arrests are tied to five separate staged traffic collisions. The collisions all have a similar fact pattern of a vehicle being struck by an abandoned vehicle that was previously reported stolen. The suspects to be arrested are all connected by family relationships, police contacts, and connections to the primary suspect in this case, Jay Stoney Anderson.
In all five traffic collisions, there were identical motives and facts of loss. The collisions were allegedly staged and police were called to the scene. When the police arrived, the vehicle at fault was always determined to be abandoned at the scene and had previously been reported stolen by the registered owner. In each case, the suspects claimed to be injured and were transported via ambulance to a local emergency room for treatment. The suspects each filed personal injury claims with the insurer and failed to reimburse the hospital for the outstanding bill. The total loss in this case exceeds $200,000.
CDI launched an investigation when Liberty Mutual Insurance Company and Progressive Insurance Company notified the Department of possible fraud. The Special Investigation Units of these companies met with representatives of the San Diego Automobile Insurance Fraud Task Force to share information. The information provided later identified a criminal ring suspected of staging more than eleven collisions over a one-year period. Additional information in support of this investigation was provided by Special Investigation Units from Republic Western Insurance Company, AIG, 21st Century Insurance Company, GEICO Insurance, and Nationwide Mutual Insurance.
The comprehensive investigation revealed multiple alleged connections between the suspects and Jay Stoney Anderson and the abandoned vehicles. In two of the collisions charged, the suspects allegedly used a rented U-Haul that was later reported stolen and used to stage the traffic collisions.
Suspects arrested on April 21:
NAME ANTICIPATED CHARGES REQUESTED BAIL
Frank Torbert III PC 550(a)1,3,4,(b)1 $100,000
George Thomas PC 550(a)1,3,4,(b)1 x 2, (b)1 / PC 667(e)2(A)
Prison Prior Enhancement $250,000
Jiaire Martin PC 550(a)1,3,4,(b)1 x 2 $200,000
Michael Jones PC 550(a)1,3,4,(b)1 / PC 667 (e)2(A)
Prison Prior Enhancement $225,000
Rodney Martin PC 550(a)1,3,4,(b)1 x 2 / PC 667.5(b)
Prison Prior Enhancement $220,000
Tamar Bradley PC 550(a)1,3,4,(b)1 $100,000
Wade Bradley PC 550(a)1,3,4,(b)1 / PC 667 (e)2(A)
Prison Prior Enhancement $225,000
Shareese Spence PC 550(a)1,3,4,(b)1
The San Diego District Attorney's Office is prosecuting this case. All suspects are expected to be arraigned in San Diego Superior Court.
The San Diego Automobile Insurance Fraud Task Force is made up of members from the California Department of Insurance, San Diego District Attorney's Office, California Highway Patrol-Border Division, and the National Insurance Crime Bureau.
Commissioner Poizner oversees sixteen CDI Enforcement Branch regional offices throughout the state. Nearly 2,800 insurance fraud-related arrests have been made by CDI since Commissioner Poizner took office in 2007 - more arrests than have been made during any other three year period, under any previous insurance commissioner.
Posted: Fri Apr 23, 2010 04:39 am Post Subject:
These people got greedy and are sort of dumb. You have to keep the cartel to no more then 3 or 4 people, 11 people are too many. Also, don't use people related to you. You also can't have an accident every couple months. You need to mix it up... different drivers, different type of accidents (only rear enders does not work). Each different driver gets in an accident about once per year. That or at least recruit some unknown person to be involved each time. Use someone different each time. If you're going to put this much energy into making money with insurance fraud put in some real work and get learned about hows to do it right.
Posted: Fri Apr 23, 2010 01:12 pm Post Subject:
If you're going to put this much energy into making money with insurance fraud put in some real work and get learned about hows to do it right.
Wow! What a topic and what a befitting reply!
If everyone of us start building such fraudulent networks, then we'll probably miss our last ray of hope.
Posted: Tue Apr 27, 2010 12:43 am Post Subject:
making money with insurance fraud
Don't want to give the impression that we condone insurance fraud, do we? Nor do we intend to teach people how to do it on this forum.
But, I will say this, the average insurance fraud probably nets the perpetrator more than the average bank robbery.
Posted: Tue Apr 27, 2010 01:27 am Post Subject:
When I was with Safeco, they sent me to "fraud" school as I was in the Special Investigations Unit (SIU). They drafted me out of college...it was my first insurance job. Ah, the memories.
I was trained in every known (at that time) insurance fraud scam on the planet. Since Al Gore invented the internet, I've gone back to school and learned about how the perpetrating scum utilizes the web-o-sphere to sucker people.
Scams is scams. They've been around since time started. Insurance simply gives these folk another avenue. Many people commit fraud without even knowing it. They misrepresent, innocently enough, a lot of information without even considering the idea of fraud. Want a couple of examples?
It's estimated that the auto insurance industry gets scammed out of more than $16 billion just due to rating "errors" in terms of premium. How many people fudge info on things like how far they drive to work, or who actually drives a vehicle, etc. I love it- they call this stuff "premium leakage." Great term for it.
Workers Comp is a joke, billions of dollars a year in fraud, mainly due to purposeful employer hiding and misreporting of employees. Purposeful, not accidental. :shock:
It's estimated that health care fraud, including Medicare and everything else, accounts for between $125 - $175 billion a year. Ya think? :shock:
I gladly attribute the above information to the following source: http://www.insurancefraud.org/stats.htm It's a great site and shocked the daylights out of me when I read through the various links. Ya wonder why our insurance costs so much. Add in the bureaucracy and the insane red-tape and you get a real good idea of what's going on in this country.
InsTeacher 8)
Posted: Tue Apr 27, 2010 03:27 am Post Subject:
Don't want to give the impression that we condone insurance fraud, do we? Nor do we intend to teach people how to do it on this forum.
Sarcasm - believe me, I didn't post something that someone hasn't thought of before.
Posted: Fri May 07, 2010 01:21 pm Post Subject:
It's estimated that the auto insurance industry gets scammed out of more than $16 billion just due to rating "errors" in terms of premium. How many people fudge info on things like how far they drive to work, or who actually drives a vehicle, etc. I love it- they call this stuff "premium leakage." Great term for it.
Now that’s some revelation! [/quote]
Posted: Sat May 08, 2010 12:05 pm Post Subject:
California Dept of Insurance Fraud Bureau published a report on Auto Insurance Fraud in 2004 that indicated that in Orange County (home to Disneyland and Knott's Berry Farm, and the largest single medical insurance fraud bust in history), as many as 48% of all auto collision claims were believed to be fraudulent.
And one of the reasons auto insurance rates are higher here than in most other states. Not enough investigators to put an end to it -- then or now.
Posted: Fri Jul 02, 2010 02:22 am Post Subject: Fraud
Lack of judgment and common sense. I am wondering if we will see more cases like this if our economy does not get any better
Posted: Fri Jul 02, 2010 03:38 am Post Subject: insurance
I'm originally from San Diego (born and raised). Even, years ago, people read about Insurance fraud (ANY kind of it). Do these people really think they won't get caught? I say this: 'what goes around, comes around'. DRUMBRAT..I agree with you. Some people are SOO desperate for money, now a days, they would probably do just about anything they have to to get it..including fraud Insurance claims!! It's sad. I live in a small town, in PA, and I even 'see it' here.
Posted: Mon Jul 05, 2010 02:50 pm Post Subject:
Sometimes being hard up for money has little to do with it. I remember an agent we had once who thought she had landed a huge deal with some business owner, he wanted a multimillion dollar policy on a relative of his.
No only did the face amount of the policy go way beyond financial eligibility, but the insured in this case had some immediately deniable health issues that they attempted to conceal. Business owner figured he could pull one over on the new agent, underwriting department caught it almost immediately.
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