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Mercy to Insurance Criminals Aids & Abets The Crime

The following will appear as an editorial in the March 15, 2009 issue of Zalma's Insurance Fraud Letter. You can subscribe by clicking on the box and including your email address at the appropriate place at http://www.zalma.com

Mercy to Insurance Criminals Aids & Abets The Crime

It is time that the insurance industry, the courts, the policy, insurance regulators, and the public take insurance fraud seriously. When, as is reported below, a police officer can cause an arson-for-profit scheme to destroy a vehicle he owns to defraud his insurer is sentenced to nothing more than probation, the system is failing. Arson is a most serious crime that puts at risk the lives of many, including the firefighters who come to extinguish the fire. It is not just the use of a pen to steal from an insurer or for an insurer to steal from those who think they were insured.
Everyone involved in insurance must lobby their legislators and state executives to take the crime seriously, to punish those convicted with real time in jail, to take from the perpetrator the money stolen, and to keep those criminals from profiting from their crime.

Giving mercy to criminals – allowing them probation even when they admit a serious crime – is not merciful to their victims. This has been true for eons. Note:

“He who is merciful unto the cruel will eventually be cruel unto the merciful” (Ecclesiastes Rabbah 7:16).

We, as insurance fraud professionals must inveigh against those “merciful” judges and prosecutors who insist that a “white collar criminal” should not go to jail. The prosecutors and judges must know that insurance criminals are as more vicious and damaging to society than the armed robber who holds up a convenience store and is punished to the full extent of the law without mercy.

As you read the “Good News” section in ZIFL note that punishment for insurance fraud varies greatly from no time in jail to years in jail.

It is time that the public, the prosecutors and the courts recognize the extent of the problem and require consistency in punishment.

You will also receive articles on Greenberg and AIG, Attorneys fees for insureds only, The Virginia Anti-Fraud effort, and many other articles.

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