Florida Federal Insurance Fraud Lawyer
According to the Federal Bureau of Investigations (FBI), federal insurance fraud costs $40 billion every year, meaning the cost to the average family is between $400 and $700 in increased insurance premiums. Federal insurance fraud is a very serious crime that can result in 10 to 15 years in prison for those convicted, as well as very high fines. If you or someone you love has been charged, it is important to speak to a Florida federal insurance fraud lawyer that can help you retain your freedom.
Premium Diversion Fraud
The most common type of federal insurance fraud scheme, a premium diversion occurs when a person embezzles insurance premiums. The person is typically an insurance agent and instead of sending the premiums to the underwriter, they simply keep the money for themselves. Other types of premium diversion schemes include not paying out on valid claims after the premiums have been collected and selling insurance without a proper license.
Fee Churning Fraud
Federal fee churning fraud schemes are similar to pyramid schemes. Initial insurance premiums are reduced by repeated commissions up until the point that there are no funds to pay out on claims. The perpetrators never have the intention of paying out on the claims and instead, it is left to a company that is forced to pay the claims. As in a pyramid scheme, each transaction appears to be legitimate, but the fraud is eventually discovered.
Asset Diversion Fraud
In an asset diversion fraud scheme, the assets of an insurance company are stolen. This usually happens when an existing insurance company has merged or been acquired by another. In this type of scheme, a person or company will use borrowed funds to acquire control of the insurer. After the purchase, the buyer will use the acquired insurer’s assets to repay the debt and the remaining assets are taken as profit by the purchaser.
Workers’ Compensation Fraud
Some fraudulent companies claim to offer workers’ compensation insurance at lower premiums. Once they have received the payment, they then fail to provide the proper insurance coverage.
Disaster-related fraud involves multiple scenarios, usually exaggerated or false claims by insurance policyholders. The most common types of this fraud include:
- Misclassification of fire, wind, or theft
- Individuals filing claims when they live far outside of the disaster zone
- Bid-rigging by contractors, including the inflation of repair costs
- Contractors who require upfront payment and then fail to perform the agreed-upon services
- Charity fraud schemes
Our Federal Insurance Fraud Lawyer in Florida Can Advise on Your Case
Federal insurance fraud is a very serious crime and if you have been charged, you need the help of an experienced Florida federal insurance fraud lawyer. At O’Mara Law Group, our skilled attorney will review the facts of your case, determine the best defense strategy to use, and effectively argue your case while refuting the arguments of the prosecution. Call us today at 407-634-6604 or contact us online to schedule a meeting and to learn more about how we can protect your rights.