Damico & Stockstill, Attorneys at Law

What is insurance fraud?

A white collar crime can be any crime involving lying, stealing or cheating. The Federal Bureau of Investigation coined the term in 1939 and uses it to define crimes of fraud within the government and businesses. Scams in particular are common white collar crimes that you may have encountered before.

A particularly interesting kind of fraud is insurance fraud. It is committed either by an insurance company or by an individual against an insurance company. There are several types of fraud that may take place.

Asset diversion is one of those frauds. This refers to the theft of assets that belong to the insurance company. This kind of fraud is most commonly seen when an acquisition or merger takes place using borrowed funds. Once the merger is completed, the company's assets are used to pay off the borrowed funds for the partner that never had any to begin with, putting them in a position of power within the company through what is essentially a fraudulent buy-in.

Bodily injury fraud is another type you may have heard about in the past. This fraud is committed by personal injury doctors or networks making exaggerated bodily injury claims. The insurance company pays out more than the injury is really worth, costing it money through fraud.

Bodily injury fraud could be combined with accusations of staged auto accident fraud. For instance, if a person stages an auto accident for insurance payments, he may also go as far as to falsify bodily injury information. By doing that, the alleged victim is actually defrauding the insurance company out of money that he or she doesn't actually deserve.

Source: FBI, "White Collar Crime" accessed Feb. 17, 2015

No Comments

Leave a comment
Comment Information
Email Us For A Response

Need Help From An Experienced Team Of Trial Attorneys?

Use the form below to contact our attorneys directly. Contact us right now.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Our lawyers have over 50 years of combined experience and are AV-rated* under Martindale Hubbell's peer review rating system.

*CV, BV and AV are registered certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the Bar and the Judiciary. Martindale-Hubbell Ratings fall into two categories - legal ability and general ethical standards.

Damico & Stockstill, Attorneys at Law

8048 One Calais Avenue | Suite A | Baton Rouge, LA 70809-3483 | Phone: 225-250-1812 | Fax: 225-769-0195 | Baton Rouge Law Office Map