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A Fictionalized True Crime Story\\n\\nThis is a Fictionalized True Crime Story of Insurance Fraud from an \\nExpert who explains why Insurance Fraud is a \\u201cHeads I Win, Tails You \\nLose\\u201d situation for Insurers.\\n\\nThe Ben-Cohain brothers, quite by accident, came upon an imaginative \\nfraud. The Los Angeles County District Attorney, after a lengthy \\ninvestigation, charged them with violation of Penal Code \\xa7 550, \\ninsurance fraud, among others related crimes.\\n\\nThe Ben-Cohain brothers operated a small furniture assembly facility in \\nLos Angeles County. They imported knocked-down children\\u2019s furniture \\n(made of composition wood and Formica laminates) from Israel. They hoped\\n to sell it to wealthy people in Beverly Hills and West Los Angeles who \\nwished to support the State of Israel. The quality of the merchandise, \\nhowever, was not high and the Ben-Cohain brothers had difficulty making a\\n profit.\\n\\nThe Ben-Cohain brothers purchased the salvage from their insurer for a \\nsmall deduction in their total claim and sold it shortly after receiving\\n payment. With the proceeds, one brother purchased a used Mercedes sedan\\n and the other a used BMW.\\n\\nThey were soon short of money since they still could not sell the low \\nquality knocked-down merchandise.\\n\\nThey sought out the services of Mr. Rosenberg, a public insurance \\nadjuster, who attached a nylon rope to sprinkler head thirty feet above \\nthe warehouse floor and yanked it out of its fitting. \\n\\nAfter the fire department was gone, the brothers, noting that \\ninsufficient damage had been done by the water from the sprinklers, \\nordered their two laborers to form a bucket brigade. The laborers poured\\n twenty-five buckets of water from the restroom on the stored furniture \\neffectively making all of their inventory unsaleable.\\n\\nShortly thereafter they called the insurer and a claim was presented for\\n $1,000,000. While the salvors were doing their work, one laborer came \\nup to him and whispered:\\n\\n\\u201cSenior, no es accidente!\\u201d\\n\\nFraud Detected\\n\\nAlthough the salvor spoke no Spanish he understood what was said to him.\\n He reported the statements to the insurer. \\n\\nAmerican Indemnity then retained counsel to take the sworn examination \\nof the laborers. Counsel, provided instructions for further \\ninvestigation and later examined the insureds under oath at the request \\nof the insurer.\\n