Fraud Files: Financial and Medical Fraud Schemes

In this edition of Fraud Files we take a look at two schemes that occurred in New Jersey. One involving a financial scheme with auto loans and the other regarding medical fraud with a dishonest doctor.

The first part of the video describes how an owner of a used car dealership, along with three employees and a bookkeeper, were charged with conspiracy, money laundering, and other offenses in connection with bank financing scam that allegedly netted $1.4 million in fraudulent loans for luxury cars.

In the second half of the report, we tell the story of a family physician in New Jersey who was sentenced to 37 months in prison for defrauding Medicare, Medicaid and private insurance companies out $280,000.

Insurance Fraud Headlines for June 15, 2015

Here are the top insurance fraud stories for today:

* Don’t Get Soaked With a Flood Car (AARP)

* Man sentenced to nearly 4 years in prison on insurance fraud (SFGate)

* Durham Man Charged With Insurance Fraud (NCNN)

* Ohio Man Repays $25K for Workers’ Comp Fraud (WorkersCompensation)

Insurance Fraud Headlines for May 1, 2015

Here are the top insurance fraud stories for today:

* NICB Wins PR Daily’s Video Award for “Best News Story” (PR Daily)

* Baton Rouge woman arrested in insurance fraud case (KNOE 8)

* Winston-Salem woman sentenced in arson at apartment building (FOX 8)

* Oklahoma workers’ comp commissioner resigns (NewsOK)


Insurance Fraud Headlines for April 24, 2015

FraudApril24Here are today’s top insurance fraud stories:

* Man Involved in Multi-State Theft Ring Faces New Charge (Insurance News)

* Florida Man convicted of insurance fraud (Command Investigations)]

* Poughkeepsie man charged with insurance fraud (MidHudson News)

* Woman pleads guilty to forgery, insurance fraud (TribLIVE)

* Alleged Theft Ring Mastermind Faces New Insurance Fraud Charge (TriState)


Man Gets 4 to 10 Years for Lighting the Match in Pet Shop Arson


Kirk Bills (AP)

Last week we reported on the story about two individuals who set fire to a Las Vegas pet shop where 27 puppies and dogs were rescued when the building’s sprinkles doused the arson fire. Gloria Lee was sentenced last week to 5 to 14 years in prison for arson, insurance fraud and attempted animal cruelty.

On Monday co-defendant Kirk Bills was sentenced to 4 to 10 years for his involvement in the case. Clark County District Court Judge David Barker said Bills acted “hand in hand” with former shop owner Gloria Lee.

“You’re the one who chose to light the match,” the judge told Bills. “You couldn’t have possibly not known those were living creatures in these cages.”

The incident sparked intense interest and protests from animal rights advocates after Lee was arrested in Las Vegas shortly after the fire. The animals became the focus of an ownership battle before they were raffled in March to raise money for local animal shelters.


Former MLB Pitcher Avoids Prison in Insurance Fraud Case


Ted Lilly at a charity event in 2010 Courtesy: PAWS Chicago

Former Major League Baseball player Ted Lilly accepted a plea deal in his insurance fraud case on Thursday. The 39-year-old pitcher will have to pay a $2,500 fine, serve two years of probation as well as perform 250 hours of community service in 12 months, according to the San Luis Obispo Tribune.

The Associated Press reported that Lilly did not appear in court Thursday, but his attorney entered a plea of no contest to a misdemeanor count of insurance fraud connected to his damaged recreational vehicle.

In March Lilly filed a false insurance claim against his recreational vehicle for damages worth $210,000. He was charged by the California Department of Insurance after an investigation showed Lilly damaged the vehicle in a collision and sought an estimate from a body shop on March 19. That estimate was $4,600. He then bought an insurance policy on March 24 and claimed the damage to the company on March 28.

Following the plea, Lilly’s attorney, James Murphy, read a statement from Lilly to the court.

“I would like to apologize for the terrible error in judgment which has led to the present situation. My actions do not reflect the way I choose to live. I am very much determined to earn back a reputation of trust and transparency.”

The two-time All-Star played 15 years for the Montreal Expos, Oakland Athletics, Toronto Blue Jays, New York Yankees, Chicago Cubs and the Los Angeles Dodgers. He retired in 2013 due to injuries.



Man Ordered to Repay Nearly $5 Million in Restitution

A Dallas-area man has been sentenced to nine years in federal prison and ordered to pay $4973,046 in restitution his role in running a staged traffic accident insurance scam since 2005.

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Leroy Nelson

From 2005 through 2012, Leroy Nelson defrauded auto insurance companies by submitting false and fraudulent claims for damage to various technical equipment in accidents that never happened. Nelson promised cash to individuals he recruited to report fictional accidents in which the driver had rear-ended a trailer or served to avoid something in the road and caused damage to items.