Auto Insurance Fraud Becoming More Prevalent
Auto insurance fraud is something that is becoming a problem in many states. Many politicians have tried to enact laws that will try to deter people from engaging in fraud but it is still going on every day in all of the 50 states.
A man from Peabody named Robert Geller decided to plead guilty to charges that he used his auto repair shop and glass repair shop to commit car insurance fraud. The man allegedly was able to bilk auto insurance companies to the tune of $28,000.
In all the man who is 53 years old was charged with a total of twenty counts of auto insurance fraud, eighteen counts of larceny over $250, and two counts of attempoted larceny.
As a part of his agreement with the Attorney General’s office, he must pay back all of the money that he obtained fraudulently and he will be on probation for nine months.
What Mr. Giller was doing was creating fake invoices and billing auto insurance companies for work that he never did. The insurance companies had no reason to question the invoices because they thought that the work was in fact being done.
Giller was able to get away with committing this fraud for almost three years. In 2009, the Insurance Fraud Bureau of Massachusetts finally got wind of what he was doing and decided to open an investigation into his fraudulent activities.
It is important for states to have insurance fraud bureaus. Insurance fraud is on the rise and unless it decreases then drivers will have to pay the price.
It stands to reason if the people who commit insurance fraud actually learn their lesson. Mr. Giller just has to repay the money and will be on probation. He will not serve jail time as so few auto insurance fraud criminals do.
States need to begin to enact stricter laws regarding auto insurance fraud. People know that if they get caught that they will essentially get a slap on the wrist. If punishments are not more sever then there will not be a deterrent to this type of crime.
Auto insurance fraud is not a victimless crime at all. The auto insurance companies have to pay out the funds that are being fraudulently obtained. Then, if the money is not recovered then the insurance company has to suffer a loss. When this happens, the drivers who are in the insurance pool then have to deal with the fact that their premiums will increase through no fault of their own.
With the economy being in dire straits, every time there is someone like Mr. Giller, it threatens the entire auto insurance system. Now, auto insurers should take more time to investigate insurance claims. It may delay compensation checks but it could help to prevent people such as this body shop owner from being able to get away with committing fraud for such a long time.
More needs to be done to support law enforcement and the Attorney Generals in the United States. There should be more prevention measures put in place. One idea is to have insurance officials review the claims that are filed by auto body and glass repair shops every six months to check for any fraudulent activities. This will help to make sure that drivers are protected. Hopefully, Mr. Giller’s story will illustrate to people that if you commit auto insurance fraud that you will have a consequence. Hopefully, the state of Massachusetts can work hard to try to uncover more insurance fraud in the future so that policy holders can have lower premiums.
Source: Peabody Patch
