Insurance Fraud

What is Insurance Fraud?

Insurance fraud is a deliberate act intended to obtain unlawful benefits from insurance providers. It occurs when claimants try to receive payouts they are not entitled to, or when insurers intentionally deny claims for rightful benefits. Common types of insurance fraud include schemes like workers compensation fraud, asset diversion, fee churning, and premium diversion. If you’ve been charged with any of these offenses, consulting a Cleveland federal criminal lawyer is crucial to protect your rights and seek the best defense.

Categories of Insurance Fraud

Insurance fraud can be classified into two main types:

Hard Fraud

Hard fraud involves deliberate acts to fake incidents such as car accidents, arson, theft, injuries, or other losses to unlawfully claim money from an insurance company.

Soft Fraud

Soft fraud involves small deceptions committed by individuals who may otherwise be honest. For example, exaggerating the value of stolen or lost property in an insurance claim. While such actions may seem harmless, they are still crimes and contribute to increased insurance premiums for everyone.

It’s important to understand the consequences of pursuing illegitimate insurance claims. Insurance companies actively investigate and prosecute fraud cases, often leading to strict penalties and even federal indictments. Should you face such accusations, connecting with an experienced Ohio federal criminal attorney can help you effectively manage the legal process.

Federal Insurance Fraud

Federal insurance fraud refers to fraudulent actions intended to deceive insurance providers for financial gain. Though no specific statute directly addresses insurance fraud standalone, individuals may be prosecuted under the Racketeer Influenced and Corrupt Organizations (RICO) Act, or statutes pertaining to wire fraud and mail fraud.

Examples of federal insurance fraud include:

• Providing false or misleading statements to insurance companies regarding claims with the intent of defrauding them.
• Presenting forged or falsified documents to manipulate auto insurance rates.
• Assisting or conspiring with others to defraud insurance companies by supplying false information.
• Submitting fraudulent claims using another person’s insurance identification.
• Hiring individuals to commit fraudulent acts on behalf of an insurer.

Real-World Example

For instance, claiming to have lost valuable items in a house incident, such as a fallen tree, when no such loss occurred, can result in insurance fraud charges. These actions not only carry legal consequences but also face active scrutiny by federal authorities.

Types of Insurance Fraud Investigated by the FBI

The Federal Bureau of Investigation (FBI) investigates numerous types of insurance scams, such as:

• Asset Diversion: Stealing company assets during mergers or acquisitions.
• Fee Churning: Overcharging commissions by abusing reinsurance agreements.
• Premium Diversion: Misappropriating insurance premiums.
• Disaster Relief Fraud: Filing inflated or false claims after a natural disaster, like a hurricane.

Individuals convicted of federal insurance fraud may face severe penalties, including civil lawsuits filed by the insurance companies themselves. These charges are often classified as third-degree felonies, carrying hefty fines and long-term imprisonment.

How a Cleveland Federal Criminal Lawyer Can Help

Facing insurance fraud charges can be stressful, particularly when dealing with aggressive federal prosecutors and rigid legal frameworks. At Youngstown Criminal Law Group, we have the best Cleveland federal criminal lawyers prepared to defend your rights and secure the most favorable outcome possible.

Why Choose Us?

• Comprehensive Defense: We analyze every detail of your case to build a robust defense strategy, ensuring your rights are upheld under consumer protection laws.
• Expert Legal Guidance: Our attorneys are experts in addressing insurance fraud cases, offering step-by-step guidance to reduce stress and uncertainty.
• Client-Centric Approach: We prioritize your interests, whether it involves protecting you from undue penalties or recovering losses you may have unfairly suffered.

Contact Us for Support

Understanding the serious financial and legal implications of insurance fraud, we are here to provide unwavering legal support. Whether you or someone you know faces these accusations, our skilled Ohio federal criminal attorneys are ready to assist you. From explaining viable defenses to asserting your rights, you can count on us to stand by you every step of the way.

Take advantage of our complimentary initial consultation and discover how the Youngstown Criminal Law Group can make a difference in your case. Contact us online or call (330) 992-3036now.