Defending beleaguered insurance professionals against fraud allegations
When most people think of insurance fraud, they think of policy holders filing false or fraudulent claims to obtain unwarranted payouts from their insurance companies. While this type of insurance fraud is a serious crime, it is only one side of the issue. There are also federal laws primarily directed at those in the insurance business that impose strict penalties for complex insurance schemes like fee churning and premium diversion. Moreover, large-scale frauds by consumers, such as disaster fraud schemes, may also draw the attention of federal authorities. If you are an insurance professional or policy holder who has been contacted by the FBI or is under federal investigation for insurance fraud, you cannot afford to go without an experienced federal insurance fraud attorney. Alliant Law Group, LLC can help.
Types of insurance fraud that draw federal interest
Most isolated instances of consumer insurance fraud are investigated and prosecuted by state authorities. However, when a fraud scheme is of sufficient scope to have an effect on interstate commerce, federal authorities may choose to exercise jurisdiction:
- Fee churning — This complex scheme involves multiple reissues of insurance policies through numerous intermediaries to siphon money in the form of commissions.
- Asset diversion — This large-scale scheme involves theft of insurance company assets held to pay valid claims. This most frequently occurs as insurance companies merge, reorganize or change ownership.
- Premium diversions — Premium diversion is the embezzlement of insurance premiums that leads consumers to believe they have insurance coverage when in fact the underwriter never received the payment and never issued the policy.
- Disaster fraud schemes — Because of the confusion large-scale natural disasters often generate, they produce a significant number of fraudulent claims. These can even include broader schemes to take advantage of the confusion to file multiple fraudulent claims and claim benefits for damages never sustained.
Federal insurance fraud penalties
Fraudulent embezzlement of insurance assets or premiums carries a potential sentence of up to 10 years in federal prison. False and fraudulent statements by those engaged in the interstate insurance business carry similar penalties. If such fraud actually caused an insurance company to fail or to be placed in conservation or rehabilitation, the potential sentence increases to 15 years. Even frauds involving less than $5,000 carry a penalty of up to one year of incarceration. Therefore, if you have been implicated in any type of insurance fraud scheme being investigated by federal authorities, it is important to consult a federal crimes lawyer immediately.
Defend your professional reputation
Our attorneys at Alliant Law Group, LLC understand that professionals and businesspeople facing serious federal charges need a more sophisticated class of criminal defense. If you have been charged or singled out for suspicion by federal authorities for any type of insurance fraud, Please contact Managing Partner Daniel Conidi for a free consultation at Dconidi@alliantlaw.us