Insurance News - Wauseon Woman Sentenced to Prison for Insurance Fraud

Faking a theft and submitting bogus receipts to an insurance company is fraud and a punishable crime.

Insurance News - Wauseon Woman Sentenced to Prison for Insurance Fraud

Arson for Profit

In doing some research on property insurance fraud, an article appeared on arson cases that were caused by distressed homeowners, which gives some indication that large insurers are seeing a slight increase in arson-for-insurance incidents that may be attributed to a large number of foreclosures in recent years.

Times have changed for today’s insurance fraud perpetrators.  Advances in forensic science have made it more difficult than ever avoid all detection.  However, arson cases continue to occur. 

Most arson for profit schemes are the result of poor decision making by people who are already under vast amounts of stress.  If a homeowner experiences a sudden drop in income, it can often be very difficult to face the reality that their home may have to be given up.  Stressors of this type can easily lead to irrational behavior, including arson.

Unfortunately, this outcome will have a dire outcome for the perpetrator.  Years of incarceration, large fines and restitution orders are often associated with arson cases, and the reality is arson perpetrators are rarely successful.  Faking an accidental fire is very difficult due to the science of forensics, and if a homeowner has missed mortgage payments and is facing a foreclosure, investigators will recognize these red flags right away and focus on arson, or an incendiary fire as the likely causation.

Extra Living Expense Fraud

A report of alleged insurance fraud comes from Watertown, NY.  Timmy A. Barrows and Victoria J. Barrows of Constableville, NY were arrested last week on charges of insurance fraud.

The couple lost a home in a fire in September of 2009.  They had made an insurance claim for the damage through their insurance company, New York Central Mutual Insurance.  As part of the claim, they sought benefits available under the “additional living expense” section of the policy, and produced rent receipts for a residence they said they were renting.  The lease agreement was apparently false, and they had been living elsewhere during the period of repair, apparently pocketing the $17,360 in expense payments made by the insurance company.

Victoria Barrows was charged with second-degree criminal possession of a forged instrument, third-degree insurance fraud and first-degree falsifying business records.  Timmy Barrows has been charged with fifth-degree conspiracy.

 

Flood Fraud in Rhode Island

A couple of high profile individuals were arrested recently in Providence, Rhode Island for an alleged scheme to defraud and insurance company.  Lori Sergiacomi aka Tanya Cruise is a radio show host on Lite Rock 105 owned by the Citadel Broadcasting Corp.  Her and former North Providence councilman John Zambarano were arrested with two others.  The Boston Globe reported that in March Sergiacomi had sustained damage to her home by storms and floods.  Since the flood damage was not covered by her insurance company, they allegedly arranged to have to have two men go to the house and stage a break in and cause vandalism damage for the home.  Invoices were then fabricated to the tune of $50,000 for the damage.