Federal Insurance Fraud

Insurance policies can provide a valuable, life-saving source of income in the event of catastrophic disasters. Whether these are injuries that result from an accident, the onset of illness, the loss of property in a fire, or even a death, insurance payments may be a vital economic safety net.

Unfortunately, some people may make false statements on insurance applications, file claims for injuries that did not happen, or even fake a death to collect payments. Any time that a person engages in a fraudulent activity related to insurance, they may commit a federal crime. However, other times individuals are wrongly accused of taking these actions to make easy money.

A Michigan federal insurance fraud lawyer could work help you fight allegations of insurance fraud. Your skilled federal fraud attorney can help you understand federal laws relating to fraud and formulate a defense to protect your freedoms in court.

The basic concept of fraud is simple. Whenever someone takes an action that is deliberately intended to trick another party out of anything of value, they may commit fraud. As applied to insurance cases, people can commit fraud in several ways including:

• Not disclosing a disease on a medical insurance application
• Filing a claim for property damage after an accident when that accident did not happen
• Claiming that home damage from a fire was accidental when the fire was actually caused by the homeowner's negligence
• Using a false identity to apply for an insurance policy

A key concept here is the idea of fraudulent intent. Criminal fraud statutes may require a prosecutor to prove not only that the defendant made a false statement or perform the act, but also that they intended to defraud the insurance company.

Many effective defenses to allegations of insurance fraud center on the idea that the alleged fraud was simply an innocent paperwork error. A Michigan federal insurance fraud lawyer could help people raise this or another appropriate defense in court.

There is no federal statute that explicitly makes insurance fraud illegal. Specific allegations concerning fraudulent insurance practices are covered by Michigan state laws. However, making false statements on an insurance policy can still be punished under federal law. This is typically achieved using the mail and wire fraud statutes.

Federal law prohibits the use of the post office to perpetrate fraud. According to 18 U.S.C. §1341, this may include the use of the post office to mail applications for insurance or to file false claims forms. This may result in a maximum prison sentence of 20 years and heavy fines.

The same penalties may apply when a person allegedly commits wire fraud. Under 18 U.S.C. §1343, it may be illegal to use any telephone, television signal, or wire communication to commit a fraudulent act.

Far more common than the use of these means of communication is the use of the internet to file false claims reports or apply for an insurance policy. Whenever the federal government wants to prosecute a person for insurance fraud, they typically may do so using these statutes.

Many people are surprised to learn that they are facing charges in federal courts for insurance fraud. True, these allegations are also illegal under state laws, but when you allegedly commit insurance fraud by using the mail, phone, or internet, this also violates federal law.

Allegations of violating federal law may be more serious than violating state law. Violating federal mail or wire fraud laws may be a felony that could result in up to 20 years in prison. It is essential that you give yourself every chance for a positive outcome.

Working with a Michigan federal insurance fraud lawyer could be a strong first step. A lawyer could work with you to help you understand the law and the potential consequences to empower you to face these charges.