It Figures
207,492
The FBI’s 2006 annual report just issued by its Internet Crime Complaint Center (IC3), shows how criminals have used the ‘Net to launch nine different varieties of fraud. Among the highlights from the report: During 2006, consumers filed 207,492 complaints. Com-plainants said they lost $198.4 million, the highest total ever. Nearly 45 percent of the complaints involved online auction fraud — such as getting a different product than expected — making it the largest category; more than 19 percent concerned undelivered merchandise or payments.
$334 million
A federal judge’s ruling brought to more than $334 million the amount that insurance company Amerigroup Corp. and its Illinois affiliate owe in damages and penalties for discriminating against pregnant women. U.S. District Judge Harry D. Leinenweber levied more than $190 million in civil penalties against Amerigroup and the affiliate. He said the companies’ actions “constituted a several years long, institution-wide goal to fleece defendants’ pockets at the expense of the government, the Medicaid system and the avoided pregnant women” and others with expensive health conditions. Attorneys for Amerigroup denied any fraud was involved, saying the company had publicly stated it was trying to reduce the number of third-trimester women signed up to ensure “continuity of care.”
5
Kansas Attorney General Paul Morrison announced fraud charges against five people accused of trying to obtain grant or insurance money for a fire that destroyed a large portion of historic downtown Fort Scott two years ago. Charles Parsons and Tim Allison are charged with committing a fraudulent insurance act for allegedly trying to deceive Farmers Mutual Insurance Company into concluding that a policy is-sued for a dentist office was in place at the time of the roaring, wind-whipped fire, even though it was not, Morrison said. The felony carries a maximum penalty of 19 months in prison and a $100,000 fine. Cindy Moyers is charged with making false information involving the dentist office, Morrison said. That felony carries a maximum penalty of nine months in prison and a $100,000 fine. Two others, Gregory Kuplen and Don Russell, are charged with one felony count each of presenting a false claim, after reporting to the Kansas Department of Commerce that their building was damaged in the fire, Morrison said. The March 2005 fire caused between $10 million and $15 million in damage
$47.5 million
Merck & Co.’s painkiller Vioxx contributed to an Idaho postal worker’s heart attack, a jury in Atlantic City has ruled, reversing the verdict in the man’s first trial and hitting Merck with a total of $47.5 million in damages. In one of Merck’s biggest losses over the drug so far, the jurors awarded the man and his wife $20 million in compensatory damages , then later said Merck should pay $27.5 million in punitive damages. The verdict in the case of Frederick “Mike” Humeston, means Merck has now won nine cases and lost five in the mushrooming litigation over its former blockbuster arthritis pill.
7.7 percent
The Illinois Division of Insurance has granted the Illinois FAIR Plan a rate change for Dwelling Property policies. The overall increase is 7.7 percent, effective March 1, 2007. The last increase in the FAIR Plan rate was approved in 2004 at 19.4 percent.