Fraud and the Future (Part I)
Thursday, March 15th, 2001 FraudFraud and the Future - Part 1 By Ken Brownlee State Farm’s victory over a Chicago gang of staged auto accident fraud perpetrators, reported in November’s Claims, is indeed heartwarming news for those of us who wonder when the good guys are going to win one. The crooks had been responsible for about 500 fraudulent insurance claim situations in Illinois, and the court ruled in the insurer’s favor. Such is not always the case. Consider, for example, the California Supreme Court ruling in People v. Birkett (21 Cal.4th 226 {-244} [1999]), in which the court found against insurance companies attempting to recover payments for auto theft from a chop shop operation. The thieves would steal an insured’s auto, strip it, and resell the parts. The court found that it was the insureds themselves who were the direct victims, not the insurers, and therefore the insurers were not entitled to reimbursement. But that’s California. (Thank goodness for its 2nd District Appellate Court in an Oc
