Zalma's Insurance Fraud Letter August 15, 2021

Claim For Damage to Property That Existed Before Issuance of Policy Is Fraud
It Is a Crime to Claim Preexisting Damage as New Damage
After accepting a Plea Agreement and having a judgment entered the Defendant had no right to expunge his criminal record Vsevolod Sergee Garanin appealed from the order, entered in the Court of Common Pleas of Lackawanna County, denying his expungement petition. Commonwealth Of Pennsylvania v. Vsevolod Sergee Garanin, No. 337 MDA 2020, Superior Court of Pennsylvania (July 30, 2021)Show more

Man Bites Dog Story: Geico Gets Injunction Against Medical Provider’s Allegedly Fraudulent Arbitrations

Co Violations by Health Care Providers Require Court to Enjoin Arbitrations

Plaintiffs (collectively “GEICO”) sued Alexandr Zaitsev, M.D., Metropolitan Interventional Medical Services, P.C., and many others health care providers. GEICO alleged that defendants committed civil RICO violations, common law fraud, aiding and abetting fraud, unjust enrichment, and New Jersey Insurance Fraud Prevention Act violations. Additionally, GEICO sought a declaratory judgement that defendants may not recover on any of the outstanding bills submitted to GEICO. In Government Employees Insurance Company, et al. v. Alexandr Zaitsev, M.D., et al., No. 1:20-cv-03495-FB-SJB, United States District Court, E.D. New York (July 27, 2021) the USDC dealt with GEICO’s motion for a preliminary injunction to (1) stay all of defendants’ pending no-fault insurance collection arbitration against GEICO and (2) enjoin the defendants from commencing any new no-fault insurance collection arbitration or litigation against GEICO, pending the disposition of GEICO’s claims in this action.

Fraud Created by Legal Professionals

Some attorneys, forgetting the oath they took when admitted to the Bar, conspire with insureds and other attorneys to commit insurance fraud. The schemes are innumerable, including staged accidents, workers’ compensation fraud, independent counsel, third party liability and property insurance fraud.

A fraud claim against a lawyer is no different from a fraud claim against anyone else. The fact a lawyer committed fraud in the capacity of attorney for a client does not relieve him of liability. [Barber v. Sedgwick Claims Management Services Inc., 3:14-27349, 2017 WL 1027593, at *3 (S.D. W. Va. Mar. 16, 2017)] The absolute litigation privilege does not extend to acts of fraud or malicious prosecution. [Miller v. Ashton (N.D. W.Va., 2019)]

Health Insurance Fraud Convictions

Dr. Richard Davidson, Area Chiropractor, Plead Guilty To Medicare Fraud. Owes $10.7M To Federal Government. Medical License Revoked.

Estimated Cost of Fraud in Europe — 2017

Insurance fraud is not limited to the U.S. but exists throughout the world. Europe seems to suffer from insurance fraud with the same vigor as we see it in the U.S. In a report written for Insurance Europe www.insuranceeurope.eu called “Insurance Fraud: not a victimless crime” some information indicates that insurance fraudsters seem to be the same across Europe much as it infects the U.S. Insurance industry.

Other Insurance Fraud Convictions

Another Guilty Plea in Louisiana Staged Truck Accident Schemes

Dewayne Coleman, age 22, of Marrero, Louisiana pleaded guilty of participating in insurance fraud scheme involving staged accidents with commercial trucks in the New Orleans area.

Consider Books to Show Your Appreciation to Your Insurer Clients or Claims Employees

Many insurers refuse to allow their employees to receive gifts from lawyers, independent adjusters or vendors.

If you wish to thank your insurance company clients for allowing you to represent their interest or if you wish to honor your claims personnel it is time to give them something that will be useful to them throughout the coming year and that will not offend insurer’s rules to avoid attempts to extort clients for business from insurer employees.

© 2021 – Barry Zalma 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 also serves as an arbitrator or mediator for insurance related disputes. 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 http://www.zalma.com and zalma@zalma.com. Mr. Zalma is the first recipient of the first annual Claims Magazine/ACE Legend Award. Over the last 53 years Barry Zalma has dedicated his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to make it possible for insurers and their claims staff to become insurance claims professionals.

Go to the podcast Zalma On Insurance at https://anchor.fm/barry-zalma;  Follow Mr. Zalma on Twitter at https://twitter.com/bzalma; Go to Barry Zalma videos at Rumble.com at https://rumble.com/c/c-262921; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to the Insurance Claims Library – https://zalma.com/blog/insurance-claims-library/  The last two issues of ZIFL are available at https://zalma.com/zalmas-insurance-fraud-letter-2/  podcast now available at https://podcasts.apple.com/us/podcast/zalma-on-insurance/id1509583809?uo=4