A Video About Zalma's Insurance Fraud Letter - February 1, 2021

See the full video at https://youtu.be/1Lvbxku45hoShow more

Read the full article at https://www.linkedin.com/pulse/zalmas-insurance-fraud-letter-barry-zalma-esq-cfe-17c/ and Read last two issues of ZIFL here.

Quote of the Issue:

“Man is only wise while he searches for wisdom; if he thinks he’s found it, he’s a fool.” - Rabbi Shlomo ibn Gavrioel

Florida Insurers Actively Pursue Fraud Perpetrators in RICO Suits

I
n a suit filed January 13, 2021, Heritage Property and Casualty Insurance Company sued Moisture Rid, Inc., Water Dryout, LLS and Angelica, Albert Sigler in the United States District Court for the Southern District of Florida, Miami Division, there docked as case number 1:21-cv-20134-DPG alleging desire to terminate an ongoing fraudulent scheme committed against Heritage and more broadly, the Florida homeowners’ insurance industry.

More Problems for Famous Litigator
Thomas Girardi’s $15m Problem with Litigation Funder Sent to Arbitration
New York Proposes a Flawed Method to Obtain Whistleblowers to Turn in Insurance Fraud Perpetrators

The New York Legislature has proposed the following as a means to help the police defeat insurance fraud:

Add §405-a, Ins L

Provides that any person who provides information to the attorney general, a district attorney or the insurance frauds bureau concerning a fraudulent insurance transaction or with information about a fraudulent insurance transaction that is about to take place may be entitled to an award of forty percent of the action or claim relating to such fraudulent action.

When State Fails to Prosecute Insurance Fraud Insurer May Bring Qui Tam Action

Insurance Fraud Victims Who Get No Justice May Sue Fraud Perpetrators on Behalf of State

Health Insurance Fraud Convictions
­­­Fake Accident Places Defendant in Jail for 12-24 Months

In State Of North Carolina v. Abu Bakr Rahman, No. COA19-928, Court of Appeals Of North Carolina (November 17, 2020) the North Carolina Court of Appeal was asked to reverse the conviction of Abu Bakr Rahman. Rahman had been convicted of attempted obtaining property by false pretenses for his involvement in a scheme to stage a two-vehicle accident and then collect insurance proceeds for fake injuries.

The court dismissed his first claim of an inadequate indictment because asserted facts supporting every element of the offense, couched in the language of the statute. The State presented substantial evidence of each essential element of the offense—that Rahman made false representations about the accident and his resulting injuries that were calculated to deceive the authorities and insurance companies, and did deceive them, and by which Rahman attempted to obtain an insurance payment for fake injuries.

Other Insurance Fraud Convictions
New Book: “It’s Time to Abolish The Tort of Bad Faith“

The concept of unintended consequences is one of the building blocks of economics. Adam Smith’s “invisible hand,” the most famous metaphor in social science, is an example of a positive unintended consequence.