The horrifying things people will do for insurance money


insurance fraud - roundup of perpetrators

Who wouldn’t like a little more money? But most of us have some limits about what we’d do to get extra cash. Not this year’s crop of criminals that the Coalition Against Insurance Fraud named to their 2017 Insurance Fraud Hall of Shame. The criminals seem to get worse every year but, fortunately, the insurance fraud investigators were smart and most of these criminals were dumb, stupidly brazen or both. Here’s a brief summary of a few from the lineup.

Some people will commit murder. Joseph Meyers and his wife wanted money for a new trailer and to jump start a trucking business. To get the money they burnt a disabled friend alive in his home in a foiled attempt to collect $165,000 in insurance. Joaquin Rams was deeply in debt so he killed his own year-old son, hoping to collect $550,000 in life insurance. How’d he get caught? Who takes out nearly a half million dollars in life insurance on an infant?

Others will run drug brothels disguised as treatment centers. Kenny Chatman ran several “sober homes” in Florida – but in reality, he kept residents addicted so that he could bilk insurers of $25 million. He kept some female residents locked up, pimping them out. Some residents overdosed, some died. Chapman was sentenced to 27 years and millions in restitution.

Some people will run dangerous, painful medical scams. Eye doctor Salomon Melgen bilked Medicare for up p $136 million by misdiagnosing and frightening patients into painful, botched laser and needle treatments that often left the poor patients with severe injuries. He treated up to 100 people a day, diagnosing them for expensive treatments whether they needed them or not.

Some people will build elaborate crime rings. Some fraudsters build such large, complex fraud rings, one has to wonder what they might have done had they turned their energy to good rather than bad. Attorney Eric Conn lived up to his name, scamming $600-million in the nation’s largest federal disability ripoff. The flamboyant lawyer called himself “Mr. Social Security.” He bribed a local judge, psychologist and doctors to rubber-stamp disability claims for clients, regardless of their health.

Some people will even crash a plane while in it. Theodore R. Wright III crashed his plane in Louisiana coastline waters to collect insurance money. He had a partner in crime who was with him and who sued for supposed injuries, so they collected on the plane and on the bogus injuries. Because he had recorded part of his crash “ordeal,” he was a media darling and might have pulled it off, but he and his co-criminals got greedy. They also wrecked another plane, a Lamborghini, and a 45-foot sailboat before being found out.

There are a few others that we didn’t cover. Most of these were huge news stories – you can Google names and learn more about any of these crimes. In all but a few cases, the perpetrators exploited trusting people in the commission of their crimes.

There are many, many fraud crimes that don’t reach this magnitude. With luck, you’ll never have friends, relatives or service providers in your life who are so larcenous and cruel. But even if you are not a direct victim of fraud, you pay an indirect cost – we all do. The Coalition reminds us that insurance fraud is an $80-billion national crime wave that is driving up your premium.

Posted in Fraud