Attorneys at Law Austin Texas Pringle
Law Office Navigation Menu: JP LG Austin Texas Law May 26th, 2017
Pringle Austin Texas Law

Insurance Fraud Hall of Shame

February 4, 2009                                                   Bulletin 2009-No. 02

 

Coalition Against Insurance Fraud Elects “No-Class of 2008” To Insurance Fraud Hall of Shame.

 

A serial home arsonist, an elected judge who made phony auto injury claims, and dentists who did worthless root canals on children were among the 12 swindlers elected to the Insurance Hall of Shame, the Coalition Against Insurance Fraud announced.

 

According to the Coalition Against Insurance Fraud (Coalition) the Hall of Shame “reveals the previous year’s largest, most-brazen or dumbest insurance schemes. Insurance fraud is an $80-billion crime annually, and has grown more violent and invasive in recent years. The No-Class of 2008 reflects that trend.”

 

The Coalition reports: 

 

“Burning with desire. Kenneth Allen led an arson ring that torched 50 homes and hauled in millions in bogus insurance claims in the Indianapolis and Muncie areas. Allen’s gang usually bought low-priced homes and loaded them with used furniture to inflate the claims. Allen even had a crooked insurance adjuster help inflate claims. Allen received four years.

 

Judging the judge. Appellate judge Michael Joyce collected $440,000 from auto insurers after lying that a 5 mph bumper bender nearly crippled him. But the Pennsylvania jurist got his pilot license and flew airplanes, was an avid golfer, went roller blading, and tried scuba diving in the Caribbean. Joyce will be sentenced in 2009.

 

Triathlon tricks. Samuel Aaron Brabson claimed a car crash left him nearly crippled and largely confined to a wheelchair. The Richmond, Va. man made more than $1.2 million in disability claims. But all along, Brabson competed in triathlons and took girlfriends on mountain hikes. He received one year.

 

Truth decay. Children had teeth pulled and painful root canals done at North Carolina clinics owned by two dentists. At least two kids each had 16 root canals and steel crowns. The dentists bilked Medicaid out of millions. Letitia Ballance and Michael DeRose paid $10 million to settle federal civil charges.

 

Revenge run amok. Serving 11 years for health-insurance fraud, Dr. Ira Klein plotted to kill those who he thought had sent him away. The Houston physician tried to pay a hitman to have his wife shot, a federal prosecutor run over by a truck, and acid thrown in an FBI agent’s face. The FBI stopped the plot in time.

 

Babbling crook. Michael Paul Schook told so many people he’d burn down his Suffield, Conn. home for insurance money that it seemed half the town knew. At least three people turned him in after he kept saying how easy the scheme would be to get away with. Schook received seven years.

Sinister seniors. Two elderly women befriended a pair of homeless men in Los Angeles then took out $3 million in life policies, naming themselves as beneficiaries. Helen Golay and Olga Rutterschmidt then had cars run down Paul Vados and Kenneth McDavid in dark alleys. Both women received life.

 

Non-working comp. Thousands of employees had no workers comp protection when three men helped sell fake policies to small businesses. The scheme stole at least $70 million in premiums. One injured worker couldn’t afford a prosthetic leg. Another lost his home and marriage. A grandmother lost her home and lived in her car. Donald Touchet received 22 years, Robert Standridge 18 years and Robert Jennings 15 years.

 

Skin deep scheme. Michigan skin doc Robert Stokes inflated claims while exposing thousands of patients potentially to HIV and hepatitis by reusing sutures, scalpels and syringes without proper cleaning. Stokes also removed minor lesions by lying to scared patients they had cancer. Stokes stole at least $1 million insurance money, and received 10 years in federal prison.”

 

Back to Legal Articles Links and Resources

 

To Archived John D. Pringle, P.C. Bulletins

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

JOHN D. PRINGLE, P.C.

ARBORETUM PLAZA ONE
9442 Capital of Texas Highway North, Suite 500
AUSTIN, TEXAS 78759

(512) 472-8742 (TEL)
(512) 472-8745 (FAX)

info@PringleTexasLawyer.com
  CONTACT US

  JP LG Austin Texas Law  
 External Linking - Add Insurance Fraud Hall of Shame to your favorites:
Insurance Fraud Hall of Shame Google
 Keep Up With Our Law Firm's Latest News - Add our RSS Feed to your favorite reader:
pringletexaslawyer.com RSS Feed!  Add pringletexaslawyer.com RSS Feed to Google!  Add pringletexaslawyer.com RSS Feed to My Yahoo!  Add pringletexaslawyer.com RSS Feed to My AOL!  pringletexaslawyer.com RSS Feed Subscribe in NewsGator Online  pringletexaslawyer.com RSS Feed!  Add pringletexaslawyer.com RSS Feed to MSN!

Austin Texas Law Homepage  |  Austin Texas Law Site Map  |  Legal Terms of Use & Disclaimer

Copyright © 2007-2008 John D. Pringle, P.C.
Web Design & Hosting by SeguinHost.com

Powered by EZ Website Builder