Latest Fraud Headlines

All the headlines from our Fraud Topic Page, ordered by recency.

Five Indicted in Louisiana for Staged Accident Insurance Fraud Scheme

Oct 28 2019 // Five defendants have been indicted in Louisiana for an alleged insurance fraud involving a staged vehicular accident scheme, the U.S. Attorney’s Office says.Damian K. Labeaud and Lucinda Thomas of New Orleans, and...

California Agent Arrested for Allegedly Stealing $148K, Leaving Client Uninsured

Oct 28 2019 // Insurance agent Stephen Mark Gomez, 64, of Lake View Terrace, Calif., was arraigned last week on eight felony counts of grand theft and embezzlement after allegedly collecting over $148,000 in insurance premium payments...

Connecticut Woman Pleads Guilty to Stealing $370K from Former Employer

Oct 28 2019 // A Connecticut woman has pleaded guilty to embezzling about $370,000 from her former employer.Federal prosecutors say 36-year-old Lydia Cabrera, of Southington, pleaded guilty to bank fraud. Authorities say Cabrera was a...

Philadelphia Businessman Sentenced to 17 Years in Prison for $34M Fraud

Oct 28 2019 // A Philadelphia businessman who amplified the size of his legal benefits firm to gain more than $30 million in loans has been sentenced to 17 1/2 years in prison.Gary Alan Frank was sentenced in Philadelphia where the judge...

Reinsurance Fraud Triggers Stock Plunge in Lehman-Founded Hungarian Insurer

Oct 25 2019 // Hungarian insurer Cig Pannonia Nyrt., which lists Lehman Brothers as one of its founders, lost as much as a quarter of its value in two days after Italian reinsurance contracts at one of its units turned out to be...

Bookkeeper for New Jersey Company Admits Stealing $1.7M in Check Fraud Scheme

Oct 24 2019 // A bookkeeper for a northern New Jersey company has admitted stealing $1.7 million from the firm by writing herself fraudulent company checks. Tammy Martinez pleaded guilty Tuesday to bank fraud. The 46-year-old South Amboy...

Sheriff Says Midwest Crop Thefts Are a ‘Major League Operation’

Oct 24 2019 // A “well-organized machine” of thieves appears to be behind the theft of tons of apples and pumpkins from orchards and farms in Michigan and Indiana, according to authorities.An estimated 7,000 pounds (3,175...

Kansas Farmer Pleads Guilty to Nearly $500K in Crop Insurance Fraud

Oct 23 2019 // Federal officials say a Kansas farmer has pleaded guilty to federal charges of crop insurance fraud and bankruptcy fraud.U.S. Attorney Stephen McAllister said Kevin W. Struss, 63, Wakeeney, Kan., pleaded guilty to one...

Texas Man Convicted of $1.7M Arson, Insurance Fraud Scheme

Oct 23 2019 // A southeast Texas man has been found guilty charges related to an arson and insurance fraud scheme in the Eastern District of Texas, the U.S. Attorney’s Office reported.According to U.S. Attorney Joseph D. Brown, a...

California Insurance Agent Arrested for Identity Theft And Forgery

Oct 22 2019 // Insurance agent Richard Valdriz, 52, has been charged with thirteen felony counts including identity theft, forgery, and grand theft after an investigation by the California Department of Insurance reportedly found that he...

California Roofer Arrested For Workers’ Comp Fraud, $50K Loss to Insurer

Oct 21 2019 // Herbert Allen Kelly III, 65, of Rancho Murieta, Calif., owner of Kelly Roofing Co., has been arrested on six felony counts of workers’ compensation fraud after allegedly underreporting his business’ payroll and...

Financial, Legal Advisors Scamming Elderly Has Become Big Business

Oct 21 2019 // Terry Ann McIntosh’s financial nightmare began four years ago, soon after she hired a caregiver through a family services website. McIntosh, then 75 and in a wheelchair, had assumed that the young woman who...

Louisiana Court: Unconfirmed Drug Test Can’t Be Used to Deny Workers’ Comp Claim

Oct 21 2019 // Louisiana’s high court has nixed the idea that an unconfirmed or unverified drug test can be used to prove intoxication or fraud in order to deny the workers’ compensation claim of an injured worker.In doing...

Medical Provider Fraud: The Most Common Schemes to Watch For

Oct 21 2019 // While most insurance claims are legitimate, studies indicate that 10% or more of all property/casualty insurance claims are fraudulent.In the workers’ compensation industry, combatting fraud can seem like a game of...

New Mexico Men Accused in Arson, Insurance Fraud Case

Oct 18 2019 // Two men from San Juan County, N.M., are accused of committing arson and insurance fraud while allegedly setting up another man to take the fall.County sheriff’s officials say 54-year-old Patrick Roller and...

Ex-Church Administrator in Pennsylvania Pleads Guilty in $1.2M Theft

Oct 18 2019 // A former western Pennsylvania church administrator has pleaded guilty to stealing $1.2 million that prosecutors say he and his wife used to pay for vacations, sports tickets and other personal expenses. Fifty-year-old...

Unconfirmed Drug Test Can’t Be Used to Deny Workers’ Comp Claim: Louisiana Court

Oct 18 2019 // Louisiana’s high court recently nixed the idea that an unconfirmed or unverified drug test can be used to prove intoxication or fraud in order to deny the workers’ compensation claim of an injured worker.In...

Brown, Szary Join Great American’s Fidelity/Crime Division in Ohio

Oct 15 2019 // Great American Insurance Group, headquartered in Cincinnati, Ohio, has hired Matthew (Matt) Brown and Joseph (Joe) Szary as divisional directors within its Fidelity /Crime Division.Brown has 16 years of industry experience...

Critics Hit SEC Revamp of Wall Street Whistleblower Program

Oct 14 2019 // A federal agency is moving with little fanfare to revamp one of the most successful whistleblower programs in the government, alarming advocates who warn the changes will set back efforts to police Wall Street and punish...

Employee Accused of Stealing Over $100K From Nebraska Insurance Agency

Oct 10 2019 // A woman has been accused of stealing more than $100,000 while working for a Beatrice, Nebraska, insurance agency.Gage County Court records say 44-year-old Nicole Nelson is charged with felony theft. Her attorney...