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NEW! 5/13/2008 3:10:31 PM EST
Posted by Barry Zalma
Attorney and Consultant

Bankruptcy Filings Review A Necessary Step to a Thorough Claims Investigation

The reports of a down-turn in the U.S. economy results in an increase in bankruptcy filings and the filing of fraudulent insurance claims. The bankruptcy stops creditors from harassing the Petitioner and insurance fraud gives him or her the ability to quickly obtain funds with little risk.

Although reports indicate that the US Trustee has increased its reports of fraud to prosecutors, the number of

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4/18/2008 11:37:35 AM EST
Posted by Barry Zalma
Attorney and Consultant

Insurance fraud is seen as such a minor crime that a lawyer claimed, as a defense to a murder charge, that "it was only insurance fraud." The fight against insurance fraud will continue unabated and without success, as long as the public and lawyers consider it to be so proper that it would be a defense to a more serious crime.

Defense Attorney Diamond''s argument in People v. Golay & Rutterschmidt (the "Black Widows" case) is one of the reasons why insurance

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4/15/2008 4:26:51 PM EST
Posted by Barry Zalma
Attorney and Consultant
The 1994 Northridge, California earthquake that caused billions of dollars in damages across Southern California also drew unscrupulous lawyers and public adjusters seeking fast money. Investigation was limited and because of the catastrophe many unnecessary and spurious suits were filed. Insurance fraud was rampant and insurers paid rather than fight. In addition insurers denied claims they should not have denied.
 
Their errors caused the state of California
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4/15/2008 12:10:08 PM EST
Posted by Barry Zalma
Attorney and Consultant

Although insurance fraud is the least prosecuted of major felonies, I try to give credit to those few agencies who actually arrest, try and convict insurance fraud criminals. Here are some I collected last month. As you read note the wide disparity in penalties imposed by the various jurisdictions.

Medicaid Fraud Defeated CVS Caremark Corp. agreed in March 2008 to pay almost $37 million to nearly two dozen states and the federal government to settle

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4/14/2008 1:40:34 PM EST
Posted by Barry Zalma
Attorney and Consultant

Insurance fraud is not a local problem. It is a depletion of the wealth of the entire country. Insurance fraud is recognized to be a $100 Billion yearly crime in which the victims of the crime are insurers who are less than loved by the public. If properly prepared, however, the insurer victim can avoid liability to those who attempt to profit from an insurance policy by fraudulent conduct.

The majority of fraudulent insurance claims are made by people with legitimate claims covered

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