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Insurance Fraud by Insurance Professionals  

True Crime Story of Insurance Fraud Number 35  

Bill and Libby were very successful insurance brokers. From their  offices in Walnut Creek, California, the Bill and Libby Agency generated  $100 million in premium volume for fourteen different insurers with  whom they held an agency appointment. They were one of the biggest  retail insurance agencies in northern California.  Success brought the good life. They owned a six thousand five hundred  square foot mini-mansion in the hills of Oakland. They built the house  over a lot purchased from a victim of  the great Oakland Hills fire storm. Bill and Libby furnished the house  with antiques and antique replicas. On every wall Libby hung her  collection of ceramic plates and fine art prints. 

On every shelf sat  Lladro sculptures, Hummel figurines and limited-edition sculptures and  plates depicting English country scenes. Their daughter, Sassy, had a  glass display case in her bedroom with a collection of more than 200  antique or collectible dolls.  The home was destroyed by fire. After minimal investigation established  that fraud might have been attempted, the already six inches thick with  invoices and estimates of repair costs were photocopied and delivered to  L.G.L. Eagle. Eagle, appeared to be the twin brother of Gabby Hayes \\u2014  with teeth was an effective and experienced insurance lawyer.  After submitting to an examination under oath Libby corrected her  denials to an admission of fraud because her lawyer did not want her  prosecuted for perjury.  Eagle reviewed the items for which Bill and Libby returned the money in  detail. He found that some items he knew were fraudulent were not  admitted to being fraudulent while some items he thought were legitimate  were admitted to be false. He advised Secure and Stable to cash the  check since the fraud had not been cured.  Libby continued to lie to herself and her husband in an attempt to  reduce her wrongdoing. He recommended that the entire claim be denied,  that the policy be declared void for fraud, and that the full amount  paid on the void policy be demanded. If payment was not made instantly  he further recommended that Secure and Stable file a suit in U.S.  District Court under the Racketeer Influenced and Corrupt Organization  Act (RICO) demanding three times the amount paid as punishment.  Secure and Stable could not allow insurance professionals who attempted  to defraud their own insurer to profit from a crime against their  profession.  A business built on the idea of Uberrima fides (utmost good faith) will  not do business with people who have proven they cannot be trusted. 

\\xa9 2022 \\u2013 Barry Zalma