Zalma's Insurance Fraud Letter - March 15, 2023

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1 year ago

ZIFL - Volume 27, Issue 6
Ohio Insurance Department Warns of ‘Past Posting’ Fraud Scheme

The Ohio Department of Insurance warned of an insurance fraud scheme committed after an auto accident or property damage that is trending in the state. Named the “past posting” scheme, the term describes the action of a person attempting to secure insurance after an incident in which they did not have coverage or making it appear they had insurance when the incident occurred, such as by manipulating paperwork.

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The California Bar Admits It’s Failure to Properly Deal with now Disbarred Tom Girardi
State Bar Employees Bribed to Ignore Wrongful Conduct by Now Disbarred Attorney
Former State Bar employee Tom Layton, who was terminated in 2015, (and his wife) received gifts and payments estimated at over $1 million from Girardi, through his firm, while Layton was employed at the State Bar. Those payments and gifts were never properly disclosed.
Other State Bar employees and Board members accepted and failed to report gifts and other items of value from Girardi.
Relatives of staff members were employed by Girardi’s firm.
Staff in the Office of Chief Trial Counsel (OCTC) were improperly involved in matters assigned to outside conflict counsel.
Eight Girardi cases were closed by individuals who May determined had conflicts of interest at the time they worked on the cases. The report found that their conflicts tainted their decisions to close the cases.
Interim Executive Director Bob Hawley ghostwrote decisions in matters assigned to outside conflict counsel without disclosing that fact, including a decision to recommend closure of a complaint against Girardi.
Between 2013 and 2015, both the Executive Director’s Office and Office of General Counsel received reports about Girardi’s influence at the State Bar and connection to Layton and others but failed to investigate.
Former Executive Director Joe Dunn, who was terminated in 2014, and Hawley made questionable terminations of two OCTC attorneys who were advocating for disciplinary actions against Girardi.
On at least one occasion, Girardi successfully deployed his connections at the State Bar to discourage people from making complaints against him.

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More McClenny Moseley & Associates Issues

Three attorneys who once worked in MMA’s New Orleans office have posted notice on their LinkedIn pages that they are now “self-employed.” Founding partner James M. McClenny has resigned from the law firm. Several attorneys who once worked for the law firm outside of Louisiana are no longer listed on the law firm’s website. After the Louisiana Supreme Court suspended Huey last week, the bios of the three other attorneys who worked with him in the New Orleans office disappeared from MMA’s website.

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Good News from the

A soulless soul-food murder plot was shut down. The owner of a soul-food restaurant featured on the hit TV reality show Welcome to Sweetie Pie’s had his nephew gunned down for a $450K life policy. James “Tim” Norman received life in prison for arranging a hit on his nephew Andre Montgomery in St. Louis. Norman paid Travell Anthony Hill $5K to shoot Montgomery with a .380-caliber handgun outside the rap studio where Montgomery worked. He then disposed of the gun and his burner phone. Exotic dancer Terica Ellis was in a relationship with Norman. He paid her $10K in cash to lure Montgomery to where he was shot. Insurance agent Waiel “Wally” Rebhi Yaghnam helped Norman secretly take out life insurance that named Norman the sole beneficiary if Montgomery died. Yaghnam helped Norman file applications that included false info about Montgomery’s net worth and background. Norman called the insurance agency to collect the insurance money just 16 days after Montgomery was shot. He also fake-played the role of grieving relative. TV clips from Welcome to Sweetie Pie’s circulated showing Norman mourning the death he himself set up. Norman even visited the murder scene with his mother and TV cameras in an episode. “Since Andre’s passing I haven’t gone through this part of the city,” Norman said on the show. “I’ve been avoiding it.” The entire murder crew now stands convicted.

Read this article including dozens of convictions and the full issue of ZIFL at

Health Insurance Fraud Convictions
Former State Lawmaker Sentenced for COVID-19 Fraud Scheme at Springfield Health Care Charity

Patricia “Tricia” Ashton Derges, 64, of Nixa, Mo., was sentenced by U.S. District Judge Brian C. Wimes to six years and three months in federal prison without parole. The court also ordered Derges to pay $500,600 in restitution to her victims.

Read this article including dozens of convictions and the full issue of ZIFL at

Other Insurance Fraud Convictions
LA Business Owner and Conspirator Sentenced In $54 Million Workers’ Compensation Fraud Scheme

Wesley Owens, 54, of Atlanta, Georgia, and Beau Wilson, 38, also of Atlanta, pleaded no contest to multiple felony counts of insurance fraud and conspiracy in Department 50 of the Los Angeles Superior Court before Judge Kerry White. The charges were filed after a California Department of Insurance investigation found the two defendants perpetrated a $54 million workers’ compensation insurance fraud scheme.

Read this article including dozens of convictions and the full issue of ZIFL at

It’s Time to Subscribe to Locals or Substack
For Subscribers Only I Have Published Special Insurance Videos

I published on more than 25 videos and two webinars of the Excellence in Claims Handling program. I also published on videos and webinars of the Excellence in Claims Handling Program available only to Subscribers. The subscribes have access to all the videos and a webinar on “The Examination Under Oath A Tool Available to Insurers to Thoroughly Investigate Claims and Work to Defeat Fraud” among others.

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(c) 2023 Barry Zalma & ClaimSchool, Inc.

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Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 54 years in the insurance business. He is available at and

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