Federal Insurance Fraud
When most people think about insurance fraud charges, they often consider the situation where someone destroys property in order to get an insurance payout or submits a false claim to an insurance company. However, there are many insurance crimes that are committed by the insurance companies or other businesses and lead to the financial destabilization of the insurance company. In fact, there are many cases where there is significant economic loss, and situations where there was interstate insurance businesses committing fraud. It is these large-scale frauds that attract the attention of the United States government, and the Department of Justice (DOJ).
Federal Insurance Fraud Cases
When the scope of the fraudulent activities cross state lines, impact interstate commerce, or involve the United States Postal Service, the federal prosecutors, known as Assistant United States Attorneys, get involved. These prosecutors often oversee the investigation from the beginning, directing the investigators on how to pursue different methods of gathering evidence. A federal case differs significantly from a state case because of the number of investigators and amount of resources available to the prosecuting attorney. It may seem impossible to fight, but the tenacious and skilled attorneys at Greco Neyland, PC understand how to attack the legalities of the investigation as well as the sufficiency of the evidence in order to help our clients.
The types of cases that most often are pursued by the federal government include:
- Making false statements or engaging in a scheme or artifice intended to result in a financial benefit when engaging in interstate insurance business;
- Diversion of assets – When there is significant changes occurring in an insurance company, such as a merger, sale, or reorganization, it is possible for assets that were designated to pay claims to be shifted in order to benefit one or more individuals. This type of theft often leads to wide-scale inability of the insurance company to pay legitimate claims;
- Fee churning – In order to maximize the amount of fees generated by a policy, it is possible to reissue it through various intermediaries. When this is done with many policies, it can siphon considerable assets from an insurance company;
- Diversion of premiums – This is a form of embezzlement, where a person or business makes payments on a policy as he is obligated to do, but these payments never make it to the right place, leading a person to be unknowingly uninsured; and
- Schemes or artifices surrounding major catastrophic events – When there is a disaster, it results in considerable confusion at many levels. This situation may be exploited through the submission of fraudulent claims on a wide-scale basis, claiming damage that never was sustained.
The penalties for being convicted of federal insurance fraud include prison terms up to 10 years. When the fraudulent activities led to the failure of the insurance company or necessitated a “bailout” to continue operations, then the prison term may increase to 15 years. In addition, there are significant fines that are levied as a result of a conviction on insurance fraud. It is critical to get the right federal defense attorney on your side if you are facing these charges.
Greco Neyland, PC Tenaciously Defends the Rights of Its Clients
A person may not realize the impact that his activities are going to have until he finds himself facing charges brought by a federal prosecutor intent on getting a conviction. It is important to retain the right attorney, which means a person who understands the pressure tactics and manipulative assertions of the prosecutor and is ready to counter each attack. The dedicated New York Criminal Defense Attorneys at Greco Neyland, PC have spent many years learning how to effectively defend clients against the charges brought by federal prosecutors, including time that the founding members spent working as prosecutors themselves. We believe that this provides us with unique insight into how to defeat the different aspects of a prosecutor’s case. We are always ready to take a case to trial, which is not the case with many defense attorneys.
Time is a commodity you just don’t have right now. To immediately discuss your case, please call us at (212) 951-1300.
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Experience as a former prosecutor gives Jeffery Greco an edge in building the strongest possible defense strategy for the accused in New York City.
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