ASA Insurance Discusses Most Recent High Profile Insurance Fraud Cases

In neighboring state California, an auto insurance appraiser was convicted of 1o counts of insurance fraud.

SALT LAKE CITY, UTAH, UNITED STATES, July 4, 2018 / -- In neighboring state California, an auto insurance appraiser was convicted of 1o counts of insurance fraud. Erwin Raul Mejia was then sentenced to a total of 10 years in prison because of his role in a group that bilked over $700,000 from customers. He was also required to pay almost that amount to six insurers. More than $420,000 was paid to Nationwide Mutual Insurance Company. According to ASA Insurance, this conviction sends a significant message to anyone attempting to commit insurance fraud. They will be punished severely if caught.

This case is a picture of an extensive fraud scheme. The appraiser prepared fraudulent claims and inflated real claims. He even had people intentionally damage vehicles and recruited others to insure their vehicles after which they would submit fraudulent claims. This scheme has netted over 70 claims that were fraudulent and more than $1.7 million.

ASA Insurance, a provider of car insurance in Salt Lake City, wants people to be aware of schemes like this that can result in charges of fraud. They can be unwilling victims of unscrupulous appraisers or other parties who are seeking to capitalize on insurance coverage. "Insurance fraud isn't just caused by people in the insurance industry," Creed Anderson of ASA Insurance says. "It can happen when someone hits your vehicle and claims major injuries and damage." He goes on to explain that a person may hit someone on purpose with the idea of filing a claim for more damages than what is accurate. They may fake an injury, hoping to gain money in medical costs. The person may even work with a car mechanic or body repair shop that will inflate the price of the repairs. It can be difficult to recognize fraud even when it is happening to the person. An experienced schemer is good at hiding their scams from even the most intuitive investigator.

If a person suspects that they are part of an insurance scheme, they should alert their insurance provider. It is also important to contact the police any time a person is involved in an accident. They can review the information about the accident which may help prove a case of fraud. Many times, a person will exchange names and addresses with the other party in an accident if it was not serious only to find out about a claim that sounds much serious than the original situation. If a police report is filed, it is more difficult for someone to exaggerate the damage or injuries. If a person cannot wait for a police officer to arrive, they need to take plenty of photos to document the extent of the damage noted at the time. This way, a scammer is not able to add more damage after the fact and claim it came from the accident.

The case in California should serve as a reminded to avoid all implications of insurance fraud even if it is unintentional. It also shows that people who are victims of fraud can see justice done against the perpetrators.

Creed Anderson
ASA Insurance
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