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Written by lordsinsurancelog

October 24, 2011 at 6:56 pm

Posted in Media

N.J. businessman finally serving sentence for insurance fraud

A Hammonton, N.J., businessman convicted of an insurance fraud scheme in 2006 started serving his sentence Oct. 17 after five years of appeals.

Samuel Siligato, 61, was convicted in 2006 for submitting about $400,000 in false property-damage claims to two insurance companies after a 1998 fire at a commercial property he owned in Winslow Township, N.J. The jury also found he tried to influence two witnesses to give false testimony at his trial.

Siligato was sentenced to 11 years in prison in September 2006, but was freed on bail Feb. 2, 2007, pending appeal. Read the rest of this entry »

Written by lordsinsurancelog

October 24, 2011 at 6:54 pm

Posted in Insurance News

Man pleads guilty in church insurance fraud case

Prosecutors say an Upstate native defrauded churches out of nearly $1 million in insurance premiums and owes more than that in unpaid claims as part of a failed plan designed to insure pastors and employees of various denominations.

William Madison Worthy, 49, who moved from Spartanburg to the Isle of Palms, pleaded guilty to federal insurance fraud in Greenville on Thursday.

Worthy was led back to jail in chains and will be sentenced at a later date. Read the rest of this entry »

Written by lordsinsurancelog

October 24, 2011 at 6:53 pm

Posted in Insurance News

Wilmington woman charged with insurance fraud after faking toilet overflow

RALEIGH, NC (NEWS RELEASE) — Insurance Commissioner Wayne Goodwin today announced the arrest of Stephanie Jean Holanek, 40, of 118 Trombay Drive, Wilmington; she is charged with four counts of insurance fraud, three counts of obtaining property by false pretense, and one count of attempting to obtain property by false pretense.

Department of Insurance criminal investigators allege that on Sept. 26, 2009, Holanek fraudulently reported a water damage claim to her insurance company, State Farm Fire and Casualty Insurance Company, as a result of a toilet overflowing on the main level of her residence. Investigators allege that Holanek received $27,430 for expenses filed as part of the fraudulent claim and attempted to collect an additional $9,321 based on other fraudulent expenses. Read the rest of this entry »

Written by lordsinsurancelog

October 24, 2011 at 6:52 pm

Posted in Insurance News

Insurance fraud isn’t worth the risk

Your recent article detailing the arrest of Elmira resident David Perry for allegedly stealing $100,000 from the State Insurance Fund by faking a work injury (“Ex-Elmira correction officer faces fraud charge,” Oct. 17) is a wake-up call that insurance fraud is a crime all New Yorkers pay for, and shouldn’t tolerate.

Thankfully, most people are honest. And Perry may well be innocent. But still, fraud can hit any community.

Shysters are peddling fake health insurance, leaving honest people dangerously unprotected.

Staged crashes are driving up our auto premiums. Read the rest of this entry »

Written by lordsinsurancelog

October 24, 2011 at 6:51 pm

Posted in Insurance News

Allstate Insurance Company Files $4.5 Million Insurance Fraud Claim

HAUPPAUGE, N.Y., Oct. 12, 2011 /PRNewswire via COMTEX/ — Allstate Insurance Company is seeking to recover $4.5 million against five medical doctors, seven chiropractors and ten professional medical corporations along with one non professional in a scheme to allegedly bill insurance companies fraudulently for procedures, including procedures that were medically unnecessary and/or inappropriate. Since 2003, Allstate has filed 32 fraud lawsuits in New York State, seeking more than $175 million in damages.

According to the Insurance Information Institute, the state of New York is in an insurance fraud crisis and no-fault fraud is costing New Yorkers hundreds of millions of dollars year-after-year. “In essence, honest, hardworking New Yorkers are paying a “fraud tax,” said Krista Conte, spokesperson for Allstate’s New York office. “We need lawmakers to enact meaningful insurance reform that puts the citizens of New York first.” Read the rest of this entry »

Written by lordsinsurancelog

October 12, 2011 at 9:38 pm

Posted in Insurance News

2011 Sets New Record for Federal Disaster Declarations

The year 2011 will go down as a record-setting year when it comes to federal disaster declarations, industry analysts say.

With another three months left in 2011, and hurricane season continues until November 30, the number of federal disaster declarations already exceeds 2010′s record, according to the Insurance Information Institute.

“The federal government issued 86 disaster declarations as of September 30, breaking the previous annual U.S. record total of 81, which was set just last year,” said Dr. Robert Hartwig, an economist and president of the I.I.I. “The number of U.S. disaster declarations has been trending sharply upward, particularly over the past 15 years,” he said.

The average number of disaster declarations between 1953 and 2010 was 34 per year.

“We’re likely to see nearly three times that many by year-end 2011,” Hartwig said, noting that the increase in recent years was due both to growth in the actual number of catastrophes, as well as to an apparent increase in the propensity to issue federal disaster declarations.

Federal disaster declarations make federal funding available for emergency recovery efforts to support state, tribal, territorial and local communities. These funds supplement monies already allocated by private-sector insurers, other governments, and private nonprofit organizations.

The most recent declaration announced on Sept. 28 by the White House, for instance, said that a “major disaster exists” in parts of the District of Columbia because of severe damage caused by Hurricane Irene. The many disasters in 2011 have created enormous, unanticipated budgetary pressures on the federal government, compounding an already grim fiscal situation and prompting spirited Congressional debates last month about how to finance FEMA’s disaster assistance programs and whether to extend FEMA’s National Flood Insurance Program (NFIP). The FEMA funding debate nearly precipitated a federal governmental shutdown.

“U.S. auto, home and business insurers had catastrophe claims payouts totaling nearly $25 billion through the first nine months of 2011 as severe winter weather took its toll; deadly tornadoes ripped through multiple states, hitting Alabama and Missouri the hardest; wildfires destroyed hundreds of homes in Texas; and Hurricane Irene ravaged the East Coast,” said Hartwig. Read the rest of this entry »

Written by lordsinsurancelog

October 11, 2011 at 11:24 pm

Posted in Insurance News