Zalma's Insurance Fraud Letter - September 1, 2021

California Legislature Wants to Make Application Fraud a Crime

Application fraud in California is only recognized with regard to workers’ compensation policies. The proposed new statute provides it will be a crime for any fraud in any insurance application.

Why it’s Difficult to Fire a Government Employee
Insurance Fraud Conviction Requires Dismissal of Government Employee
After Conviction for Fraud State Employee Demands Her Job

Fatu Rimbert appealed from a November 12, 2019 final administrative decision of the Civil Service Commission (Commission) affirming her removal as a family service worker for the County of Essex (County), Department of Citizen Services, Division of Family Assistance and Benefits (DFAB). In The Matter of Fatu Rimbert, Essex County Department of Citizen Services, No. A-1684-19, Superior Court of New Jersey, Appellate Division (August 18, 2021) was asked to reinstate the job from which she was fired.

Insurer’s Report to Insurance Fraud Authorities Is Privileged
It Is Not Defamation to Report a Suspected Fraud to The State

Cholla Bay Hotel Group LLC; CBHG Management S.A. DE C.V.; Desert Springs Equestrian Center LLC (“DSEC”); and Lorilei Peters (collectively “CBHG”) appealed from the trial court’s grant of summary judgment in favor of Farm Bureau Financial Services, its “affiliate,” Western Agricultural Insurance Company, and Paul Cully (collectively “Farm Bureau”), and the ultimate dismissal of its claims. In CBHG Management, S.A. de C.V., a foreign corporation; Cholla Bay Hotel Group, an Arizona corporation; Desert Springs Equestrian Center, LLC, an Arizona limited liability company; and Lorilei Peters, in her individual capacity v. Farm Bureau Financial Services, a foreign corporation, and Paul Cully, No. 2 CA-CV 2020-0111, Court of Appeals of Arizona, Second Division (August 6, 2021) the Court of Appeals was asked to reverse the trial court’s judgment.

The “Chutzpah” of Insurance Fraud Perpetrators
After Sentencing Defendant Attempts to Change His Plea of Guilty

It takes a massive amount of unmitigated gall (chutzpah) to file an appeal of a conviction and sentencing after pleading guilty with knowledge and understanding but insurance fraud perpetrators seem to have no trouble doing so rather than pay restitution or serve probation; a classic case of the dog biting the hand that feeds him.

Convictions from the Coalition Against Insurance Fraud
Health Insurance Fraud Convictions
Other Insurance Fraud Convictions

© 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 54 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/zalma; 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