True Crime of Insurance Fraud Video Number 42
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Shoes on Melrose
\\n\\nBarry Zalma, Esq., CFE presents videos so you can learn how insurance fraud is perpetrated and what is necessary to deter or defeat insurance fraud. This Video Blog of True Crime Stories of Insurance Fraud with the names and places changed to protect the guilty are all based upon investigations conducted by me and fictionalized to create a learning environment for claims personnel, SIU investigators, insurers, police, and lawyers better understand insurance fraud and weapons that can be used to deter or defeat a fraudulent insurance claim. How Avoiding Taxes Can Cost a Merchant It was a successful, trendy, shoe store on Melrose Avenue, West Hollywood, California. Stocked with electric yellow combat boots and pink platform shoes his was the most popular shoe store on the Avenue. The beautiful people provided a good income for Albert Benvenitti, the owner. Albert was an honest man. He treated his customers fairly. He never questioned them when they brought shoes back. Manufacturers admired him because he paid for his merchandise within 10 days of invoice. Like all small businessmen, Albert was certain he was overtaxed. Half his income went to state and federal taxes. No matter how hard he worked it seemed he made less money every year. Albert fought back in the only way he could, he didn\\u2019t record every cash sale. The shoes sold for cash simply stayed on his inventory sheet as unsold merchandise. By putting the cash sales in his pocket his profit margin \\u2014 on the books \\u2014 went down but the real money he took home increased. By fighting the government, he reduced his tax burden from 50 to 30% of the true net income. When he became the victim of a burglary his books failed to show the inventory he actually lost.
\\nAvoiding Taxes Destroyed a Legitimate Insurance Claim Although Benvenitti knew that he lost \\u2014 from his first-hand knowledge of the business \\u2014 more than $30,000 in shoes he agreed to a $5,000 settlement and promised to cancel his policy and never insure with that insurer again.
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