Insurance Fraud

Insurance fraud involves the deliberate attempt to obtain unauthorized benefits through improper use of insurance processes. This can occur when a claimant tries to acquire benefits they are not entitled to or when an insurer unlawfully denies benefits that are rightfully owed. Common examples of insurance fraud include workers’ compensation fraud, asset diversion, fee churning, and premium diversion. If you’ve been charged with any of these offenses, seeking assistance from a Somerset criminal lawyer is vital to protect your rights.

Categories of Insurance Fraud

Insurance fraud is generally divided into two categories:

1. Hard Fraud

Hard fraud refers to intentional and outright attempts to fabricate accidents, theft, arson, or injuries to unlawfully collect financial benefits from an insurance company.

2. Soft Fraud

Soft fraud involves seemingly minor exaggerations by otherwise honest individuals. While some people perceive these as harmless, soft fraud is still a crime. It contributes to increased insurance costs for everyone, and insurance companies actively prosecute such offenses.

Collecting insurance payments you’re not entitled to can result in serious consequences. Insurance companies, equipped with legal teams, aggressively pursue fraudulent claims, often resulting in federal indictments. Consulting with an experienced Somerset DUI attorney can help you understand your legal options and secure a strong defense.

Federal Insurance Fraud

Federal insurance fraud encompasses intentional misrepresentations made to insurance companies for financial gain. While there isn’t a specific law addressing insurance fraud alone, prosecutors in Somerset may charge individuals under broader statutes such as the RICO Act (Racketeer Influenced and Corrupt Organizations) and those governing wire and mail fraud.

Types of activities that constitute federal insurance fraud include:

• Providing false or misleading statements about claims to defraud an insurer.
• Submitting fabricated or manipulated documents to influence insurance actions.
• Collaborating with others to create fraudulent insurance claims.
• Using another person’s insurance identification to file false claims.
• Employing others to commit fraud against insurance companies.

For example, claiming to have lost valuables during a house incident (like a fallen tree) when no such event occurred can lead to federal charges and severe penalties.

Key Types of Insurance Fraud Investigated by the FBI

The Federal Bureau of Investigation actively investigates various forms of insurance fraud, such as:

• Asset Diversion: Misappropriating assets during the acquisition or merger of insurance companies.
• Fee Churning: Generating excessive commissions through complex reinsurance deals.
• Premium Diversion: Stealing premiums intended for insurance policies.
• Disaster-Relief Fraud: Filing inflated or false claims after natural disasters, such as hurricanes.

Apart from facing federal charges, individuals may also be subject to civil actions initiated by insurance companies.

Penalties for Insurance Fraud

Charges related to insurance fraud are typically classified as third-degree felonies. However, depending on the specific nature of the fraud, convictions can carry severe consequences, such as:

• Substantial Fines

Penalties may include hefty financial compensation, often extending to thousands of dollars.

• Lengthy Imprisonment

Convictions often result in long jail terms, significantly impacting offenders’ personal and professional lives.

Why You Need a Somerset Criminal Lawyer

Facing insurance fraud allegations can be daunting. Federal prosecutors are relentless, and insurance laws often leave little room for error. Here’s how the Somerset criminal lawyers at Logue Law Group can help:

• Comprehensive Legal Defense

We provide detailed representation to protect your rights throughout the legal process. Our experience as both Somerset DUI attorneys uniquely positions us to handle complex cases with a focus on achieving the best possible outcomes.

• Recovery of Losses

If you’ve been victimized or suffered losses due to fraudulent claims, we fight to help you recover what is rightfully yours.

• Strategic Guidance

We ensure you fully understand your defenses and guide you through each step of the case.

Contact a Somerset Criminal Lawyer Today

If you or a loved one is facing insurance fraud charges, don’t wait to seek legal counsel. The stakes are high, and time is critical. With the experienced attorneys at Logue Law Group by your side, you can rest assured your case is in capable hands.

Schedule a free initial consultation with a seasoned Somerset criminal lawyer today. Call 844.PITT.DUI or contact us online. We’re here to protect your rights and achieve the best possible outcome for your case.

And the best way to do that is to hire a Somerset DUI attorney right away.