Fraud Files: Fake ID’s and Phony Claims

In this edition of Fraud Files we focus on Hani Abujudeh, 55, of Rancho Cucamonga, California, who was the leader of an auto insurance fraud scheme, and was sentenced to six years in state prison. Abujudeh was involved in a scheme where he filed over 35 fraudulent claims, manipulated used car odometers and vehicle titles to make the vehicles appear more valuable and then used false identities of other victims to sell those cars on Craigslist and Auto Trader to unsuspecting customers.

NICB in the News: Hot Spots, Stolen Motorcycles and Insurance Fraud Schemes

(MSN)These are the ‘hot spots’ for car thefts in the USA

When one thinks of Albuquerque, N.M. images of the bordering Sandia mountains, the legendary Rio Grande river that flows through the city, and an abundance of green chile peppers immediately come to mind. But there’s one more distinguishing feature that the residents of this picturesque southwestern city might not be as proud of.

Read the full story here.

(LA Times)Six California metro areas make the top 10 for highest rates of car theft, report says

Heads up, Bakersfield residents — you may want to double check that your car doors are locked.

Read the full article here.

(WTHN)Stolen motorcycles in Connecticut

A post on the Waterbury Police Department’s Facebook page is revving up reaction from local motorcycle riders. With more than 7,000 views, it’s getting a lot of attention. It shows surveillance video capturing two young men checking out motorcycles in an old building on Johnson Street. Police say those men stole some of those bikes and now they need the pubic’s help trying to find them.

Read the full story here.

( issued for 26 accused in $500,000 insurance fraud scheme in Columbus

Twenty-six people have been charged in a $500,000 insurance fraud ring centered in Columbus, Georgia Insurance Commissioner Ralph Hudgens announced Wednesday during a news conference.

Read more here.

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 May 7, 2015

Here are the top insurance fraud stories for today:

* Student Who Went Missing After Trying to Sell Car Through Craigslist Found Dead (KTLA)

* Body Shop Owner Defrauds Insurance Companies of Over $1.3 Million (NICB Blog)

* Former Insurance Broker Pleads Guilty to Nationwide Phony Trucking Cargo Insurance Fraud Scheme (

* NICB Named Interactive Health’s 2014 “Healthiest Companies in America” (NICB Blog)

* 8 Broward County Residents Arrested for Involvement in PIP Fraud Scam (MyFloridaCFO)

Top Insurance Fraud Stories for April 16, 2015

Here are the top fraud stories in the news today:

* Be Financially Prepared for Hurricane Season (Insurance Information Institute)

* Woman Accused of Falsely Reporting Stolen Vehicle (Cheektowaga Bee)

* Owner, auto tech charged with grand theft, insurance fraud (Lake County News)

* Florida doctor linked to U.S. senator pleads not guilty to Medicare fraud (Reuters)

* PennDOT contractor earned more than $1 million through alleged fraud (FOX 43)

* Dentist pleads guilty in $21M Medicaid fraud scheme (Westfair Online)

Top Insurance Fraud Stories for April 15, 2015


John Choi addresses the media in February

Here are the top fraud stories in the news today:


* Keeping Your Car Safe From Electronic Thieves (The New York Times)

* Counting the cost of America’s insurance fraud epidemic (

* Family behind $20 million insurance fraud schemed headed to trial (Insurance Business America)

*Two Allendale County men accused of staging train-car collision in insurance fraud scheme (The Post and Courier)

Three Arrested in Operating Illegal Medical Clinic

Three individuals in Florida were arrested yesterday for allegedly operating an unlicensed clinic in Orlando that was used as part of a personal injury protection (PIP) fraud scheme.


Courtesy: Google Maps

Dr. Lherisson Domond fronted ownership of the clinic, Unity Pain and Injury Center, from February to December 2012, but the clinic was operated by several non-licensed individuals who offered to pay Domond $1,500 a month for use of his name.
An investigation stated the clinic illegally provided medical treatment and physical therapy to individuals involved in motor vehicle accidents. The treatments then were billed to insurers under the patients’ personal injury protection insurance coverage.

The investigation further revealed that two other individuals, Nesly Loute and Pierre Alex Herisse, allegedly hired clinic staff and managed its operations. The three arrested individuals face felony charges for fraud, operating an unlicensed clinic and grand theft that carry sentences of up to 30 years.

“Crash and Buy” Insurance Fraud Doesn’t Pay Off

It’s been a common trend lately in the world of insurance and it is called the “crash and buy” scam. This is when someone without insurance gets in an accident and then quickly buys a policy after the incident. Only after getting a policy would the individual then make a claim on the accident.

Last year, the California Department of Insurance, along with several law enforcement partners, conducted a statewide sweep, arresting nearly 200 people for “crash and buy” fraud.

Tamickeua Jones

California Department of Insurance

Tamickeua Jones, 30, was arrested Tuesday on three counts of insurance fraud for her role in this scheme. In December 2014, she allegedly rear-ended another vehicle while driving without insurance. Hours later, she purchased a new insurance policy and reported to the insurance company that she had been in an accident in an attempt to get the insurer to cover the damage to the uninsured vehicle.

California Department of Insurance officials believe Jones made the claim to get her insurance to pay for the damage to her car. She was booked on three felony counts of insurance fraud for filing a fraudulent auto claim.


Getty Images

Last month former Major League Baseball pitcher Ted Lilly was charged with insurance fraud for a similar scenario. Lilly allegedly damaged his RV worth around $200,000 but did not file a claim until after he purchased insurance on the vehicle.

Insurance Commissioner Dave Jones said in a statement.

“Unfortunately, this type of insurance crime is surprisingly common. Insurance fraud is an expensive drain on the state’s economy that totals into the billions of dollars annually in California. This is not a victimless crime. The cost of these scams is passed along to consumers through higher rates and premiums-everyone pays for insurance fraud.”
In total 162 cases were filed with potential total losses of more than $1 million and actual losses of more than $75,000. 195 people were charged with 236 felonies and 43 misdemeanors.