Zalma's Insurance Fraud Letter - January 1, 2024

ZIFL - Volume 28 Issue 1Show more

The Resource for the Insurance Claims and Insurance Fraud Professionals

This, the first issue of the 28th Year of ZIFL includes articles and reports relating to insurance fraud, including:

False Swearing & Insurance Fraud

In common language the “false swearing” provision of an insurance policy merely means that if the insured lies under oath the policy is void whether the lie is in a proof of loss or at an examination under oath. In Texas and Oklahoma, false swearing is explained this way:  where an insured knowingly and willfully overestimates the value of property destroyed or damaged, the policy is voided and the insured’s right to recover is defeated.

Read the full 22 pages of this issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2023/12/ZIFL-01-01-2024-1.pdf

More McClenny Moseley & Associates Issues
This is ZIFL’s twenty first installment of the saga of McClenny, Moseley & Associates and its problems with the federal courts in the State of Louisiana and what appears to be an effort to profit from what some Magistrate and District judges indicate may be criminal conduct to profit from insurance claims relating to hurricane damage to the public of the state of Louisiana.
Louisiana State Police Open Criminal Investigation Into McClenny Moseley

Louisiana State Police have opened a criminal investigation into efforts by McClenny Moseley & Associates and Apex Roofing to solicit customers after receiving a complaint by the state Insurance Department about “suspected fraudulent actions” related to insurance claims.

Read the full 22 pages of this issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2023/12/ZIFL-01-01-2024-1.pdf

Waiver of Right to Appeal Effective
Insurance Agent Defrauded Clients by Taking Premium Money and Keeping it for Personal Expenses

When a criminal defendant’s valid guilty plea includes a waiver of the right to appeal, the Fourth Circuit Court of Appeals generally enforces the waiver by dismissing any subsequent appeal that raises issues within the scope of the waiver.

However, even if an appeal waiver is valid and applicable, the Fourth Circuit will review a claim that a district court’s sentence or restitution order exceeded the court’s statutory authority. In United States Of America v. Glenda Taylor-Sanders, Nos. 21-4136, 20-4604, United States Court of Appeals, Fourth Circuit (December 12, 2023) the Defendant sought a change of the sentence and restitution order.

Read the full 22 pages of this issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2023/12/ZIFL-01-01-2024-1.pdf

Now Available The Compact Book of Adjusting Property Claims – Fourth Edition

On January 2, 2024, in Kindle, paperback and hardback formats,  The Compact Book of Adjusting Property Claims, Fourth Edition is now available for purchase here and here. The Fourth Edition contains updates and clarifications from the first three editions plus additional material for the working adjuster and the insurance coverage lawyer.

Read the full 22 pages of this issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2023/12/ZIFL-01-01-2024-1.pdf

Fictionalized True Crime
The Largest Residential Burglary of All Time

This is a Fictionalized True Crime Stories of Insurance Fraud from an Expert who explains why Insurance Fraud is a “Heads I Win, Tails You Lose” situation for Insurers. The story is designed to help Everyone to Understand How Insurance Fraud in America is Costing Those who Buy Insurance Thousands of Dollars Every year and Why Insurance Fraud is Safer and More Profitable for the ­­­Perpetrators than any Other Crime.

After twelve months trying to get insurance on over $3,000,000 in jewelry and a like amount of fine arts, a Taiwanese man who was a wanted criminal in his own country convinced two American insurers to agree to insure him against the risk of loss to the contents of his home.

Read the full 22 pages of this issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2023/12/ZIFL-01-01-2024-1.pdf

Health Insurance Fraud Convictions
Guilty Verdict of Physician Who Subjected Patients to Unnecessary and Invasive Tests
Payam Toobian, M.D. Paid Kickbacks to Physicians for Patient Referrals and Defrauded Medicaid by Subjecting Patients to Unnecessary Radiological Tests.

Read the full 22 pages of this issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2023/12/ZIFL-01-01-2024-1.pdf

Fraudster Must Serve Time and Lose His Residence to Pay Restitution

Armando Valdes appealed his 60-month sentence for health care fraud after he pleaded guilty. Valdes's conviction and sentence arose out of his scheme to submit millions of dollars in fraudulent medical claims to United Healthcare and Blue Cross Blue Shield for intravenous infusions of Infliximab, an expensive immunosuppressive drug. These infusions, purportedly given to patients at Valdes's medical clinic, Gasiel Medical Services ("Gasiel"), were either not provided or were medically unnecessary.

In United States Of America v. Armando Valdes, No. 22-12837, United States Court of Appeals, Eleventh Circuit (December 19, 2023) the Eleventh Circuit disposed of the arguments asserted by Valdes.

Read the full 22 pages of this issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2023/12/ZIFL-01-01-2024-1.pdf

Other Insurance Fraud Convictions
Prison Sentences In Multi-Million Dollar Insurance Fraud; Returns $7.75M to NYSIF

SADAF BHATTI, 40 and his company, ANAAR CONSTRUCTION & CONTRACTING CORP., pleaded guilty November 2, 2023, in New York State Supreme Court to Insurance Fraud in the First Degree for their role in Certified Public Accountant STEVEN LYON’s scheme to defraud the New York State Insurance Fund (“NYSIF”) of more than $18 million. BHATTI was sentenced to 1-to-3 years in state prison and ANAAR CONSTRUCTION & CONTRACTING CORP. was sentenced to a three-year conditional discharge.

Read the full 22 pages of this issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2023/12/ZIFL-01-01-2024-1.pdf

The Role of the Insurer’s Attorney After Ending the EUO

A well-executed Examination Under Oath (EUO) is not only one of the insurer’s most effective weapons against fraud. It can also be highly instructive for the adjuster. If an attorney is responsible for performing the examination, the adjuster must make clear that it is his or her obligation to provide sufficient factual information supported by legal authority for the insurer to make a decision on the claim.

The adjuster should also, if possible, attend the EUO to help the attorney and to study questioning techniques. Attorneys, whose job it is to ask questions, will usually do a more thorough job of EUO than will insurance claims staff.

After the EUO, the attorney will usually suggest additional investigation and can also give the adjuster legal advice as to the insurer’s rights, duties, and obligations.

Read the full 22 pages of this issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2023/12/ZIFL-01-01-2024-1.pdf

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 and read the full 21 pages of this issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2023/11/ZIFL-12-01-2023-1.pdf
Read the full 22 pages of this issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2023/12/ZIFL-01-01-2024-1.pdf