Tag Archives: Insurance Fraud

Attorney Richard Kent Livesay Pleads Guilty to Charges of Insurance Fraud Involving Roof Claims

“We hope this sentence sends a message that this conduct will not be tolerated in our county.” —Matt Smid, Tarrant County Assistant Criminal District Attorney According to the Tarrant County district attorney’s office, a Tarrant County judge sentenced Richard Livesay to five years in prison after he pled guilty to various charges including fraud and … Continue Reading

Chubb Awarded $12.3 Million in Insurance Fraud Scheme

Chubb Corporation has a good reputation in the insurance industry for fairly handling claims and paying insureds what they are owed. Chubb fell victim to an overzealous adjuster, Dennis Sorge, who was colluding with a contractor he hired to estimate repair costs. The contractor, Paul H. Mertz Jr., would inflate the estimates and then Sorge … Continue Reading

Unlicensed Insurance Agent Arrested for Stealing Premiums

William David Rodeffer III of Folkston, Georgia, was arrested for collecting $40,000 in insurance premium payments from two clients for nearly three years for insurance policies that were never purchased. Claims Journal reported today about the arrest and listed their source as the Florida Department of Financial Services.… Continue Reading

Pennsylvania Playhouse Owner Headed to Jail for Insurance Fraud

Nestled right on the Delaware River in New Hope, Pennsylvania, is the historic Bucks County Playhouse. The original structure dates back to 1790 and is was formally a grist mill.1 While the theater and its stage have seen some of entertainment’s biggest stars, including Robert Redford, Angela Lansbury, and Dick Van Dyke, its name is … Continue Reading

Florida Updates Website for Reporting Suspected Insurance Fraud

When a policyholder disputes a property damage claim, insurance company representatives often dig in their heels and try to stand firm on the denial or the low valuation. Insurance companies frequently allege various unsupported reasons and defenses to avoid paying what is due. Some insurance companies accuse consumers of insurance fraud even when the facts … Continue Reading

Wrong Application Information May Lead to Denial of an Otherwise Covered Loss

Policyholders and their agents need to make certain that an application for insurance coverage has the correct answers and information. While some states require the intent of fraud in the application to rescind coverage, many states merely require  materially wrong information to void an otherwise valid claim. Indeed, in Florida, even an unintentionally wrong answer which results … Continue Reading

Sandy Burnette Defends Insurance Fraud Fighters

(*Chip Merlin’s Note—Sandy Burnette is a prominent insurance defense attorney with exceptional experience in cases where insurance fraud or arson are suspected. I have known Sandy for 27 years. As you can see from his rhetoric, he is a fierce defender for those engaged in the fight against insurance fraud. Keeping with my Fair and … Continue Reading

The Mind Of The Insurance Fraud Adjuster And Investigator

I wonder what was in the minds of clerics charged with uncovering witchcraft? Were they true believers or just doing their job? Did they ever question what they did and the impact of their actions on society? Such thoughts came to my mind as I read Barry Zalma‘s January and February Insurance Fraud Newsletters. Some may question why … Continue Reading

Does the Insurance Industry Engage in More Insurance Fraud Than Their Customers?

Absolutely. The problem is that there is no industry to uncover these acts and no propagandists sensationalizing what is going on. But the evidence is there. For example, Marsh & McLennan just paid over seven million dollars as partial punishment for a bid rigging scheme involving other insurance companies. "The intricate bid rigging scheme allowed … Continue Reading

A Response To The Executive Director Of The Coalition Against Insurance Fraud

Jay, Maybe yours  and Barry Zalma‘s comments regarding the amount of fraud are correct. However, you provide no objective and reliable data to support your comments. Without that information, your unsupported statistics are little more than fear and suspicion-mongering, which governments and corporations use all the time to influence their citizens and customers. For example, in  … Continue Reading

Insurance Fraud Expert Admits Insurance Industry Makes Up Statistics

I received a comment to a recent blog regarding a perception among many of my colleagues that insurance companies are fabricating the amount of insurance fraud that goes on in the United States. I think the comment is important to highlight because it is an admission that the insurance industry fabricated those statistics. Barry Zalma wrote in part: … Continue Reading