By Jason Proctor CBC News

Posted: May 11, 2012 11:33 AM PT

Last Updated: May 11, 2012 1:33 PM PT

A Miami boat captain has been arrested on a first-degree grand theft charge for allegedly sinking a $1.86 million yacht in 2009 off the Bahamas.

Florida Chief Financial Officer Jeff Atwater announced the arrest of Robert Figueredo by detectives from the Florida Department of Financial Services Division of Insurance Fraud (DIF).

“There is no such thing as a victimless crime,” CFO Atwater said. “Those who reap the spoils of perpetuating fraud victimize every Florida consumer. Those who cheat their fellow Floridians out of their hard-earned dollars will be captured and put behind bars.”

The division initiated an investigation into the sinking of the 80-foot yacht “Star One” reported stolen from Key Biscayne on May 4, 2009, one day after it was discovered scuttled in an area known as the “Tongue of the Ocean” offshore from the Bahamas.

Atwater said suspicions of Figueredo’s involvement were initially raised by a statement from Figueredo’s ex-girlfriend, who told police that he had bragged to her that he had sunk the boat deliberately.

Figueredo gave a sworn statement to the insurance company that he had no knowledge of the theft, and he was completely unaware of who had taken the Star One, according to officials. Federated Insurance Co. received the claim for the sunken boat.

Figueredo was booked into the Miami-Dade County Jail. If convicted on the charge, he faces up to 30 years in prison.

Miami-Dade State Attorney Katherine Fernandez Rundle is prosecuting the charge.

 

Research shows that smaller retailers are often targets of insurance slip-and-fall scams.

Slip-and-fall claims, that is, the form of insurance fraud where individuals create their own staged dangerous situation so that they can fake falling down and hurting themselves in order to receive monetary compensation, are on the rise, and small businesses seem to be a main target.

Though this form of accident can legitimately occur, scams are increasingly making insurance news.

Businesses do need the coverage in order to protect themselves financially, as an innocent individual could slip and fall, sustaining a serious injury that requires expensive medical treatment. Unfortunately, though, criminals are taking advantage of the fact that these scenarios are quite simple to fake and are providing them with a simple – if unethical – way to obtain money.

Even worse, the losses caused by insurance fraud is causing rates to rise, and prices of goods and services to increase.

The National Insurance Crime Bureau (NCIB) has recently discovered a number of different attempts to try to use slip-and-fall litigation threats in order to try to extort money from the owners of small businesses. Scam artists use this method to try to receive cash payments from these innocent shop owners.

The strategy usually works when a scam artists fakes an injury in a store and then tells its owner that medical care will be required. After some time has passed, the scam artists returns to the business to tell the owner how much the medical expenses cost, and that he will be suing for that amount. At some point in the conversation, the owner is offered the opportunity to pay a certain amount in cash to have the whole mess go away. Unfortunately, when the shopkeepers pay up, it only encourages more extortion.

The majority of these cases are never reported to the police, which makes the problem difficult to measure. The NICB reviewed slip-and-fall insurance fraud claims that were indeed made and determined that they rose by 12 percent from 2010 to 2011. California saw the largest number of cases (667), followed by New York (280) and Texas (245).

 

Tags: Business, California insurance fraud, insuarnce news, insurance fraud, insurance scams, NCIB insurance fraud data, slip and fall insurance fraud, small business insurance fraud

HAUPPAUGE, N.Y., May 8, 2012 /PRNewswire/ – Allstate Insurance Company has filed its second insurance fraud lawsuit of 2012, seeking to recover $6 million against 4 New York area defendants.  The Complaint names a physician, a medical professional corporation, a management company, and an unlicensed layperson who allegedly used his management company to control at least one medical professional corporation.

The complaint alleges that a New York medical professional corporation, Richmond Radiology, P.C., was illegally managed and controlled by an unlicensed person and a management company in violation of New York law. As detailed in Allstate’s complaint, an unlicensed layperson, who was not a physician, secretly owned and controlled professional corporations, and also shared in the proceeds of the companies’ provision of professional services. All of this conduct was a direct violation of New York law, and rendered the defendants ineligible to receive No-Fault reimbursement.

The lawsuit was filed following an investigation by Allstate’s Special Investigative Unit and seeks reimbursement for no–fault benefits Allstate paid on behalf of its customers during timeframes specified in the lawsuit.  The lawsuit is the latest in a string of actions taken by the insurer to protect consumers from these and similar activities. Since 2003, Allstate has filed 38 fraud lawsuits in New York State seeking more than $207 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 millions of dollars year-after-year in higher premiums.  “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.”

Allstate is joined by other insurers and many New York State leaders in its pursuit for comprehensive reform of the no-fault system.  “The no-fault system is being exploited and responsible citizens are the victims,” Conte said.  “Without the support of lawmakers, incidents of fraud will continue to increase.  We need to work together this legislative session to fix the broken no-fault system.”

For more information on the dangers of insurance fraud, and how you can help fight it, please visit Fraud Costs NY at www.i-issues.com/new-york

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer known for its “You’re In Good Hands With Allstate®” slogan. Now celebrating its 80th anniversary as an insurer, Allstate is reinventing protection and retirement to help nearly 16 million households insure what they have today and better prepare for tomorrow. Consumers access Allstate insurance products (auto, home, life and retirement) and services through Allstate agencies, independent agencies, and Allstate exclusive financial representatives in the U.S. and Canada, as well as via www.allstate.com and 1-800 Allstate®.

SOURCE Allstate Insurance Company

Seeking more than $9 million in damages for fraud.

State Farm has filed another lawsuit against several Toronto-area medical clinics for filing fraudulent claims. Those named in the suit include Global Rehab Clinics Ltd., Perfect General Contracting Corp., Queen’s Medical Assessment Centre Ltd., Princess Rehab Clinic Inc., Crown Diagnostic & Assessment Centre Inc., as well as Mohammad Aslam Bajwa and Gurjeet Singh.

In its Statement of Claim, State Farm is seeking $2 million in damages for fraud, fraudulent misrepresentation and/or unjust enrichment; $2 million in damages for conspiracy; $5 million in aggravated and/or punitive damages; a declaration that State Farm is not required to pay any future or outstanding bills from the defendants; the costs of the action; prejudgment and post judgment interest; HST; and such further reliefs as the Court sees fit.

“This latest suit shows our continued commitment to proactively fighting alleged insurance fraud,” said John Bordignon, media relations at State Farm Canada. “State Farm is reacting to this form of criminal activity on behalf of our customers who are ultimately the victims of fraud. Honest people should not have to pay because of those who cheat the system or act through illegal means.”

Bordignon added that State Farm is committed to reducing the impact insurance fraud has on everyone.

“We have stepped up our efforts internally and have added a significant number of additional dedicated resources to combating insurance fraud. We are sending a clear message that we will continue to be vigilant in our investigations and will take appropriate legal action against those who engage in fraudulent activity.”

Police have put the brakes on auto theft in the Greater Toronto Area and the effect is so dramatic that Toronto police chief and insurance investigators are taking notice.

It’s no coincidence that, amid the staggering decline, the Toronto police and Ontario Provincial Police have disbanded their dedicated auto-theft units.

In Toronto, the larger Major Crime Task Force now investigates auto theft. The OPP Provincial Auto Theft Team no longer exists.

Police haven’t given up on such investigations because cars are still being stolen, but the targets are mostly older models lacking new anti-theft devices.

In Toronto, the number of stolen vehicles has fallen to 4,479 in 2010 from 12,600 in 1999, a decline of about 65 per cent.

The numbers aren’t quite as dramatic when the whole GTA is included, but they are impressive nevertheless.

In 2003, 19,515 cars were stolen across the GTA. In 2010, that number had fallen to 9,728, or a drop of about 50 per cent, according to Statistics Canada.

Year-to-year data show auto thefts across the GTA have fallen for seven straight years.

StatsCan attributes the decrease to the use of anti-theft devices such as immobilizers, car alarms, specialized task forces and targeted initiatives such as the “bait car” program.

The numbers tell a quite a different story from the 1990s when stealing a vehicle was as easy as using a butter knife and a screwdriver.

Insp. Mark Barkley, who joined the auto-theft unit as a constable in 1997, is one of the men who put the gears in motion for change.

The auto squad, operating out of a secret Toronto location, had about a dozen officers trying to chase down every stolen vehicle, sometimes with devastating impact.

“We saw the numbers of auto thefts and we were very aware of the death and destruction and mayhem it was causing,” Barkley said. “Kids were stealing cars right across the country.”

Barkley, now an inspector at 54 Division, recalls how the momentum started to swing against the criminals.

While working in the auto-theft unit, he received a call early in 2000 from Marlene Viau. Her brother, Sudbury police officer Rick McDonald, was killed by a young person driving a stolen vehicle in 1999. She wanted answers.

Barkley took up the challenge and the National Committee to Reduce Auto Theft was formed. (Its other name was Project 6116, McDonald’s badge number.)

The committee held many discussions with police agencies, insurance groups and auto manufacturers.

Barkley would go to the auto makers to examine how vehicles were being built and the auto makers would come to the police lots with new immobilizer designs and a challenge: Try to steal this car.

“We were learning from the people who we were arresting,” Barkley said.

Anti-theft devices were still being refined. After working his regular shift in the auto-theft unit, Barkley would go home and — while raising two small children with his wife — write to policy makers and manufacturers to discuss ideas.

He also approached Transport Canada.

“I wanted to go to the ministry and say, ‘This is going on.’ Let’s get them on our side and say, ‘Let’s shut this down. We’re never going to stop chasing this dog.’ ”

Policies and practices changed.

Partly because of Barkley’s determination, Transport Canada introduced a law making immobilizers mandatory in vehicles built after Sept. 1, 2007.

The devices prevent vehicles from starting without keys.

“We knew when that came into effect that would be the single biggest impact on reducing auto theft,” Barkley said. “We front-end loaded the prevention because the resource demand on chasing them was too severe.”

“Mark was instrumental” in getting immobilizers built into cars, said his colleague at the time, Det. Sgt. Jim Gotell.

The Insurance Bureau of Canada has partnered with Toronto police to reduce auto theft.

“Immobilizers made a big difference,” said Rick Dubin, vice-president of investigative services for the bureau. “Innocent Canadians as well as law enforcement people were being killed. We’ve seen that in several cases. Now, we are interfering with the theft chain.”

Dubin said other factors driving down thefts include stepped-up border enforcement and reader technology that can scan 1,000 licence plates an hour and find matches to stolen vehicles.

“Car theft used to be a difficult issue for us,” Police Chief Bill Blair told a town hall last week. “It still remains a problem. Cars are still being stolen. But the number of car thefts is down (dramatically) in the last seven years.”

The flipside of the equation, Blair said, is that some crooks will use other means to get at the Lexus or Mercedes in your driveway.

They break into homes to steal car keys, knowing most people place them within a few feet of their front entrance.

“Cars are getting harder to steal, but it’s created a new crime,” Blair said. “It’s a crime where people will break into your house and steal your keys.”

Vehicle thefts declining

The annual number of vehicles stolen in Toronto, as reported by Toronto police:

2010 4,479

2009 5,462

2008 6,687

2007 8,506

2006 8,847

2005 5,772

2004 10,248

2003 11,911

2002 11,558

2001 12,235

2000 12,066

1999, 12,600

Top 10 stolen vehicles in Canada for 2011

The top 10 most frequently stolen vehicles in Canada in 2011, as reported by the Insurance Bureau of Canada:

2009 Toyota Venza 4-door

1999 Honda Civic SiR 2-door

2000 Honda Civic SiR 2-door

2006 Ford F350 Pickup Truck 4WD

2002 Cadillac Escalade EXT 4-door AWD

2006 Chevrolet TrailBlazer SS 4-door 4WD

2007 Ford F350 Pickup Truck 4WD

2001 Pontiac Aztek 4-door AWD

1998 Acura Integra 2-door

1999 Acura Integra 2-door

OLDWICK, N.J., Apr 10, 2012 (BUSINESS WIRE) — The amount of money that Allstate Insurance Co. has sought to recover in insurance fraud-related lawsuits in New York offers a glimpse into how much the criminal enterprise saps from the business annually, according to the latest issue of BestWeek U.S./Canada.

In the past six years, the Northbrook, Ill.,-based company has brought 28 lawsuits in the Empire State, seeking to recover more than $101 million in insurance fraud cases, the company said. Most recently, the company filed a lawsuit in New York, seeking $2 million it paid out in what are alleged to be fraudulent medical claims (Best’s News Service, March 15, 2012).

The company dedicates 63 employees to its special investigation unit in New York and 570 similar investigators on a national basis. Those units, which are common among the largest national insurers, are charged with weeding out suspicious claims and recovering money paid out to those trying to bilk the system.

Peter Van Patten, a Nationwide special investigations unit director in charge of special projects, told BestWeek in the past four years his company has placed a greater emphasis on checking out and preventing fraud. He said the company has committed itself to being a resource for law enforcement agencies investigating insurance crimes. Nationwide has about 230 fraud investigators across the country.

In BestWeek Europe, the fear that gripped the world’s businesses in 1999 as the calendar inched toward the year 2000 gave a boost to cyber insurance, a line that is now firmly established in the casualty market. Gareth Tungatt, cyber underwriter at Barbican Group Holdings Ltd.’s Syndicate 1955, divides the cyber market into business interruption and the liabilities that can result from the loss or misuse of data stored in cyber networks.

Also BestWeek U.S./Canada, gives a sneak peak at the hot topics expected to be on the agenda at the annual Risk and Insurance Management Society Inc.’s annual conference, which gets under way April 15 in Philadelphia. The April 23 issue of BestWeek will contain exclusive print and video coverage.

Analytics, supply chain risk, cyber risk, the state of the insurance market and the economy are all likely to be all the buzz, said Deborah Luthi, enterprise risk manager for the San Francisco Public Utilities Commission and president of RIMS.

While some RIMS conferences of the past were almost dominated by single topics, such as broker contingent commissions or terrorism insurance, this year finds risk managers grappling with a wide range of risks. “When did our jobs get so complex, and how do we stay out ahead of that?” said Luthi.

Among the most popular of the 120 educational sessions offered during the conference are those tying risk quantification to strategic goals and driving down the cost of risk, plus one session that promises to define 10 easy steps to implement enterprise risk management.

BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, visit www.ambest.com/sales/BestWeek .

BestWeek can be accessed on iPads and mobile devices. Go to www.bestweek.com on your iPad or mobile device, click on BestWeek digital to log in.

Founded in 1899, A.M. Best Co. is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com .

Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

SOURCE: A.M. Best Co.

        A.M. Best Co.
        Caroline Saucer, (908) 439-2200, ext. 5774
        caroline.saucer@ambest.com

Copyright Business Wire 2012

 

Being self-employed has its benefits: Flexible hours, autonomy, working within spitting distance of the fridge. But setting up shop in your home also brings along a host of new concerns: Keeping that HST squirrelled away, organizing your expense receipts, disciplining yourself to stay away from the fridge between coffee breaks.

 

recently discovered another aspect of running your own business that requires extra attention – home insurance. According to the Insurance Bureau of Canada (IBC), anyone running a business out of their home needs to have coverage that is specific to that business – either an extension of their regular policy, or a separate business policy.

Lindsay Olson, IBC’s vice-president for British Columbia, Saskatchewan and Manitoba, reported on the IBC website that 39 per cent of Canadians operating a small business out of their home say they don’t have business-specific insurance and that “this situation could have disastrous results for these entrepreneurs.”

She gives as an example an independent, home-based retail products distributor. If that business owner was out delivering orders and someone broke into their home or car and stole their products, they would not be covered under their regular home insurance policy. “Because the product is related to a business, and you have not disclosed to your insurer that you are running a business from your home, your home or tenant’s insurance policy will not cover the loss,” she writes.

That makes sense if you are a small business owner with a tangible product – be it artisanal beef jerky or custom motorcycle gear – but you still might be at risk even if you don’t carry inventory. Ms. Olson gives another example: a courier who comes to your home to deliver business documents on an icy day. If he or she slips and falls on your doorstep, suffers an injury and decides to sue, the liability portion of your home policy won’t cover you.

“The injury was the direct result of an activity related to your business, therefore it is not covered under your personal home insurance policy,” Ms. Olson says. “But that does not relieve you of the responsibility to compensate the injured courier. He or she has the legal right to pursue compensation through the courts. Without proper business liability insurance, you could be ruined financially if the courts find you legally liable for the courier’s injuries.”

If there was a fire in your home that destroyed items related to your business – your products, computer equipment, office furniture – none of it would be covered under your home insurance policy, Ms. Olson says. And that’s not the worst of it.

“What is more, it’s likely that if you have not disclosed the existence of the home-based business to your insurance company, your home insurance policy will be voided and none of your loss will be covered,” Ms. Olson says. “Is it worth it? What you think you’re saving by not paying for an additional insurance policy is nothing compared to what you stand to lose.”

If you’re a home-based small business owner and have any concerns that your home insurance policy might not provide all the necessary coverage, it’s worth a call to your representative to see if you need to upgrade.

Canada NewsWire

TORONTO, March 22, 2012