Fraud can be found in back alleys or in a private law attorney’s office. When Seattle attorney Edward Callow was 39, he pled guilty to five felonies related to the theft of his client’s insurance settlement, according to an article by Erin Van Bronkhorst, Puget Sound Business Journal.
Callow coerced and finagled the bulk of a $500,000 life insurance settlement from his client, who became unable to work and permanently disabled from the accident of which the insurance settlement derived.
Callow and former Nationwide Insurance Claims Associate Fariborz (Romeo) Rahrovi were charged with first-degree theft, conspiracy to commit first-degree theft, money laundering, perjury and obtaining a signature by duress.
“This crime is particularly offensive because an attorney used his position of trust to prey on a victim,” said Kreidler.
Insurance fraud is becoming one of Americas biggest crimes and the Coalition Against Insurance Fraud estimates at least 80 billion a year in insurance theft schemes. State insurance regulators have now developed bureaus in most states that you can contact if you are a victim. The FBI, U.S. Postal Service, Medicare, Medicaid and other federal agencies are heavily involved in combating insurance fraud.
Protect yourself
- Never sign blank forms
- Make sure bills for work or medical services are accurate
- Be sure the company and the sales person are licensed by your state
- Check with your state about any complaints
- Keep your identification number secret
State fraud prosecutions have tripled over the last three years, according to a new study of state fraud bureaus by the Coalition. States have created a model fraud law that makes it harder for con artists to set up fake insurance companies. Many states also are scrutinizing insurance company finances and market practices more closely.
Any type of transaction that requires health, auto or life insurance policies should be carefully examined; all documents reviewed in detail before any commitment is made. Get a second opinion or financial adviser to answer any concerns questions before becoming a fraud victim.
As you can see from this scenario buyer must beware. Seattle attorney guilty of five felonies, shows you that fraud is prevalent.