Damico & Stockstill, Attorneys at Law

Multiple Louisiana residents arrested for insurance fraud

Perhaps the most common white collar crime is fraud, but when people think of fraud in the context of white collar crime, they usually imagine someone taking money from a company for which they work. This is certainly a type of fraud, but it is far from the only type. Depending on the circumstances, anyone can commit fraud, which means that anyone can be accused of fraud. No matter what your occupation or circumstances, it may be in your best interests to have an understanding of fraud.

Back in 2013, Louisiana State Police were informed of suspicious activity regarding health insurance claims in the New Orleans area. According to police, investigations were conducted over the course of the next two years, and the investigations indicated that more than 15 people had been involved in staged crashes since 2011. The results of this investigation have led to six people being arrested for insurance fraud, and an additional five people still being pursued.

According to the insurance agency, more than $150,000 was lost in a crash back in 2011, and once the fraud was detected, claims began being denied. One particular individual is suspected of orchestrating the crashes under a false identity. That individual is currently facing charges of perjury and identity theft.

Insurance companies are understandably careful with their money, and they like to know that their payouts are justified. Unfortunately, when fraud is suspected, a payout can suddenly bring everyone involved into a legal battle, and innocent people may be facing serious criminal charges. Even if you had no idea that the fraud was being committed, you may find yourself wrapped up in the allegations depending on the circumstances. If you are accused of fraud in Louisiana, it is highly recommended that you meet with an attorney to discuss your defense options.

Source: The New Orleans Advocate, "Six south Louisiana residents arrested on insurance fraud charges in connection with staged crashes," Della Hasselle, Aug. 10, 2015

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