What You Need to Know About Insurance Fraud
Posted By Law Offices of Jeffrey C. Grass || 20-Nov-2012
The insurance industry collects more than $1 trillion in premiums annually. Because this is such a lucrative industry, insurance fraud is a serious problem. Insurance fraud is estimated to cost the American public more than $40 billion per year. State and federal agencies have increased efforts to pursue those committing insurance fraud and are prosecuting these cases more aggressively than ever.
Insurance fraud is a broad legal term that can include any act that is committed with the intent to fraudulently obtain benefits or to deny benefits that are due to someone. Insurance fraud is second only to tax evasion in terms of the cost of white collar crimes in America. The following information will explain why insurance fraud is so rampant and why you need a criminal defense lawyer if you are accused of this crime:
The most common schemes include premium diversion, fee churning, asset diversion, and workers’ compensation fraud. These schemes include everything from the embezzlement of insurance premiums to the theft of insurance company assets.
- The Investigative Process
In Texas, the Department of Insurance Fraud Unit is responsible for investigating insurance fraud. Each case of fraud is unique, so each investigation is unique as well. The unit will develop a plan, work with other agencies, interview witnesses, subpoena critical documents, conduct surveillance, execute search warrants, present its case to the grand jury, and execute arrest warrants. The unit also coordinates with the prosecuting attorneys and will testify at hearings or trials.
The penalties vary depending on the severity of the crime, which is determined by the value of the claim. If convicted, you will also have to pay restitution, including court costs and attorney’s fees.
If you have been accused of insurance fraud, now is the time to contact a criminal defense lawyer. At the Law Offices of Jeffrey C. Grass, we handle state and federal criminal defense for clients in the Plano area. Call to schedule a consultation.
Categories: White Collar Crimes