Failure to Profit From the Crime of Insurance Fraud Does not Excuse the Crime

CONVICTION FOR INSURANCE FRAUD AFFIRMED

Post 4984

UNSUCCESSFUL FAKE ACCIDENT STILL GOES TO JAIL

THE PEOPLE v. STEPHEN R. JACKSON, H052419, California Court of Appeals, Sixth District (January 23, 2025) Jackson tried to have his felony conviction reduced to a misdemeanor because of Proposition 47.

FACTUAL BACKGROUND

In 1992, Jackson was charged by information with conspiracy to commit insurance fraud, causing or participating in a vehicular collision or any other vehicular accident for the purpose of presenting a false or fraudulent claim; presenting or causing to be presented a false or fraudulent insurance claim; presenting a false or fraudulent claim for loss or theft, destruction, damage, or conversion of the contents of a motor vehicle; and, preparing a false police report and authorization of medical records/employment records with intent to present it in support of a false or fraudulent claim. Jackson was convicted by plea of count 2, violation of Insurance Code section 1871.1, subdivision (a)(3), a felony, and placed on felony probation.

In 2024, Jackson filed an application to have his felony conviction designated as a misdemeanor

Proposition 47, approved in November 2014, makes certain drug-and theft-related offenses misdemeanors. Nothing in the relevant statute bases the punishment for the crime of participating in a vehicular collision for the purpose of presenting a false claim on the value of the property or claim at issue.

In addition to alleging that the value of the claim at issue in his conviction should make him eligible for relief under section 1170.18, subdivision (f), Jackson argued that he "was never given a check," "never saw the check", and that he "didn't destroy any property or damage any property."

ANALYSIS

Stephen R. Jackson's appeal was based on his conviction for causing or participating in a vehicular collision to present a false or fraudulent claim. He argued that under Proposition 47, which reduces certain property theft crimes to misdemeanors when the value is $950 or less, his offense should also be reclassified since the value of the checks was under $950.

Key Points
Both before and after Proposition 47, Jackson's offense was classified as a felony under Insurance Code section 1871.1 and current Penal Code section 550.
The legislature intended to treat causing or participating in a vehicular collision for the purpose of presenting a false claim as a felony, regardless of the value of the claim.
The punishment for Jackson's crime does not depend on the claim's value, unlike other offenses under Insurance Code section 1871.1 and section 550, which are misdemeanors if the claim is below certain amounts.
Conclusion

The trial court properly denied Jackson's section 1170.18, subdivision (f) petition to redesignate his felony conviction for causing or participating in a vehicular collision or any other vehicular accident for the purpose of presenting a false or fraudulent claim as a misdemeanor.

ZALMA OPINION

The people of California did away with most of Proposition 47 but it was in effect when Jackson was convicted. However, since his crime, auto insurance fraud, is always a felony even if he was so incompetent he made nothing from his crime, he was properly convicted and the court refused to change his felony to a misdemeanor. There is no excuse for committing insurance fraud and even if the fraud failed to make any money for Jackson he committed the crime. Jackson was probably caught, tried and convicted because he was an incompetent criminal and must now continue to live with the shame of a felony conviction.

(c) 2025 Barry Zalma & ClaimSchool, Inc.

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