Insurance fraud is a crime that can take many forms and is caused by many factors. In a nutshell, insurance fraud is a misrepresentation one make to an insurance carrier in order to receive a financial benefit to which one would not be entitled.
Whether it’s a fraudulent medical claim, a car insurance fraud, or a Worker’s Comp fraud, the outcome is all the same – you make a false statement to an insurance carrier and receive some financial benefit.
Why people commit Insurance Fraud?
We’ve seen a few reasons in our practice (and we’ve handled many insurance fraud cases). Sometimes, it’s just greed, plain and simple. After all, everyone knows that insurance companies are rich, so it’s not a big deal if they lose some money. Many people commit insurance fraud because of financial necessity because they are just struggling making ends meet. Others simply don’t view it as something wrong because it’s hard to identify an insurance company as a “victim”. In their mind, robbing a bank is clearly wrong, but taking a claim to which one is not entitled is not necessarily bad.
How Serious of a Crime is Insurance Fraud in New York?
Under New York Penal Code, Insurance fraud can be anything from a Class A Misdemeanor to a Class B Felony. It all depends on how much money the insurance carrier lost as the result of the crime. So, in more serious cases involving large amounts of money, a conviction of insurance fraud can result in prison time. If you are not a US citizen and the claim is over $10,000, you are likely to be deported. Even if the claim is smaller than that, you can be deported because insurance fraud is a crime of moral turpitude.
What Can I Do If I’m Investigated for Insurance Fraud in NYC?
The first thing to remember is not to speak with investigators. If they come to you with questions, you can assume that they already know most answers. Don’t make it worse by making statements that will incriminate yourself. Besides, it won’t even help you to “spill” everything to the investigators.
The way to handle it is to ask for the investigator’s contact information and tell them (politely but firmly) that you will speak with your attorney first and the attorney will get back to them.
We’ve had countless cases where we intervened on behalf of our clients early in the process and were able to prevent arrest and prosecution. There were so many cases where our clients were already arrested but the outcome was much better than it could have been.
Insurance fraud investigations take months to develop. There can be plenty of time to solve the problem before it’s too late if you handle this right. If you have any questions concerning an insurance fraud matter in New York, call our experienced NYC insurance fraud lawyers today at (212) 577 6677 to set up an immediate consultation.