| The Ponzi-like scam allegedly done by finance | | | | compensation for safety and structural repairs |
| manager Bernie Madoff, leaving many Americans | | | | that was not performed. He was ordered to pay |
| blown off of their hard-earned savings, and even | | | | restitution amounting to US$4,000 and a $1,500 |
| forcing those on retirement to find work, is | | | | fine on top of a five-year probationary period. |
| perhaps the biggest fraud problem the United | | | | In another insurance fraud case, the convicted |
| States is faced with today. But perhaps one that | | | | defrauder got insurance coverage after being |
| tails second to it, and has been going on for quite | | | | involved in a three-car accident. She reported a |
| some time is auto insurance fraud. | | | | false date of accident in an attempt to have her |
| In Hawaii alone, the Insurance Fraud Investigation | | | | insurance company pay for the damages. In |
| Unit of the Hawaii State Department of | | | | November 2008, she was ordered to serve a |
| Commerce and Consumer Affairs came out with | | | | five-year prison term for attempting to obtain |
| a report of a 61 percent increase in criminal | | | | fraudulent insurance benefits and to pay $500 in |
| convictions for motor vehicle insurance fraud for | | | | restitution to the accident victims. |
| the past year compared to 2007, according to | | | | With modern technology, many fraudulent car |
| the DCCA. | | | | accident claims do arise from sophisticated |
| Examples of Hawaii insurance fraud cases in 2008 | | | | organized crime rings, and even from individuals, |
| include charges involving a typical resident, a body | | | | that can be hard to detect. Direct victims of car |
| shop owner, and a career criminal. | | | | insurance fraud pay with money and their or their |
| One claimed inability to work due to auto accident | | | | family’s lives. And even if one is not a direct |
| injuries. This person claimed fictitious employers | | | | auto insurance fraud victim, he or she is also liable |
| and created a post office box address which | | | | to pay, even without his or her knowledge. |
| made her intercept all correspondence. Three | | | | DCCA estimates that insurance fraud costs each |
| different insurance companies were defrauded | | | | household in Hawai'i an additional $200 to $300 in |
| using this modus operandi by the same person. In | | | | increased premiums every year. For sure, there |
| January 2008, this person was sentenced to 30 | | | | might be statistics too for the states in the |
| days in jail and was also ordered to pay | | | | continental US, with amounts approximating if not |
| restitution totaling more than $103,000 along with | | | | exceeding that of Hawaii. |
| court fees in the amount of $1380.00. | | | | Find the best and ideal cheap auto insurance quote |
| A body shop owner meanwhile did not contest a | | | | for your cars today! Visit our website now to get |
| decision by the court of him defrauding an | | | | the best car insurance rates and save more |
| insurance company. He claimed and was given | | | | money and time on affordable auto insurance! |