Federal Crime of Insurance Fraud

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Do you have any questions about possible defenses and penalties for federal insurance fraud, specifically for Maryland and DC, as well as Northern Virginia in Virginia? You can contact PC Law Scrofano for answers and additional resources.

Who Can Be Accused of Insurance Fraud?

Many individuals are involved in complex insurance fraud schemes, where they can involve anything from a misleading or false statement on an insurance claim to various forms of fraud occurring.

Insurance deception can encompass workers’ compensation deception, healthcare deception, property insurance deception, and other deception-related schemes.

Annually, instances of insurance fraud play a significant role in the insurance industry consisting of more than 7,000 companies, as reported by the FBI, which amass a total of $1 trillion in insurance premiums.

If an individual, a business, or an insurance company attempts to obtain valuable assets or money through misrepresentation or false pretenses, they may face charges of insurance fraud.

Insurance claims misrepresentation can be considered one of the most common forms of fraud charges. If an insurance company believes that false statements have been provided, one can be accused of insurance fraud.

Many insurance fraud crimes within insurance companies are perpetrated by insured individuals instead of insurance agents, who can commit a federal crime by embezzling or stealing money from the insurance company.

Insurance companies that present false financial reports or statements can also be prosecuted for fraud by a regulatory office or agent of the federal government, which can influence their actions.

Who Can Be Accused of Insurance Fraud

Possible Defenses That Can Help Avoid an Insurance Fraud Sentence

If your attorney gathers evidence that shows the charges against you are unfounded, they can dismiss the motion to file. Prosecutors often add more charges to a case in order to improve their chances of getting a conviction.

In a trial, the suppression of evidence that violates a defendant’s constitutional rights could result in the dismissal of your case, and it is possible for law enforcement agencies to unlawfully gather evidence in some cases. The case could be dismissed because key evidence that could lead to a conviction would not be admissible.

A positive result can also lead to the absence of deceitful conduct, or the mere absence of deceitful purpose, or lack of awareness. Your actions were not a deliberate endeavor to perpetrate fraud against an insurance company, your lawyer can also demonstrate that.

If you face charges, retaining the services of a fraud lawyer is more precisely understood as a manifestation of prudence and a desire to safeguard your rights, despite the common perception that it implies culpability.

Possible Defenses That Can Help Avoid an Insurance Fraud Sentence

Penalties for Insurance Fraud

In general, certain states classify insurance fraud schemes as either soft (opportunistic fraud) or hard fraud.

The act of making an exaggerated claim about an individual who actually exists is considered fraud. For instance, when someone overstates the damages caused by a car accident in order to claim more compensation. Soft fraud is seen as a misdemeanor, and the penalties can include community service, probation, fines, or even up to a year in jail.

Committing fraud in the form of insurance policy fraud can result in several years of imprisonment, as it is considered a felony and can involve the destruction of property or arson. It represents a dedicated criminal effort to defraud an insurance company, and it requires careful planning since hard fraud is not as common as soft fraud.

However, individuals convicted of fraud insurance, such as charges related to fraud insurance in the first degree and fraud insurance in the second degree, face potential restitution for victims and fines as outlined by the insurance fraud laws of Washington, D.C.

Regain your liberty and put forth their utmost effort to combat your accusations, Scrofano Law, a DC criminal attorney, will make contact to ensure your representation in case of federal insurance fraud charges.

Penalties for Insurance Fraud

Is Insurance Fraud a Federal Crime?

The federal crime of insurance fraud involves an attempt by one person to defraud any entity or person, and learning more about your rights here can help you obtain additional benefits.

Insurance fraud is considered a crime in every state across the United States. When insurance fraud takes place, individuals attempt to deceive or manipulate an insurance company in order to collect money that they are not entitled to.

If you have become a target of insurance fraud, ensure that you report it to either your insurance company or the fraud bureau in your state.

Although there are many state insurance laws that can prosecute insurance fraud at the federal level, the classification of the fraud and the severity of the crime can vary depending on the extent of the fraud and the specific circumstances. In many state insurance laws, insurance fraud can be classified as either a felony or a misdemeanor.

Federal prosecutors often do not pursue these cases unless they have airtight evidence, as they consider insurance fraud to be a serious offense. However, insurance fraud is a distinct offense that is not addressed by Federal laws, unless it involves interstate commerce or falls under the jurisdiction of government statutes covering wire and mail fraud.

The federal attorney can help you navigate the complex legal system to ensure your rights are protected. It is crucial to contact a federal criminal lawyer as soon as possible if you are being investigated for insurance fraud. Interestingly, some people don’t even realize they are being investigated for insurance fraud, but the penalties for federal crimes often include harsh fines and lengthy prison sentences.

Is Insurance Fraud a Federal Crime

How Is Fraud Detected?

Fraud investigators, also known as Special Investigation Units (SIUs), typically have the responsibility of pursuing actions against perpetrators and investigating and detecting fraudulent activities. Furthermore, insurance companies have established special investigation units to detect fraud, and some states have also established fraud bureaus to investigate and detect fraud.

The special units of insurance companies collaborate closely with the Criminal Investigation/Fraud Divisions, Federal Bureau of Investigation (FBI), and the National Insurance Crime Bureau (NICB) within the regulatory agencies.

Does the FBI Investigate Insurance Fraud?

The FBI has the authority to investigate various fraud schemes, such as insurance fraud and health care fraud schemes, in collaboration with other federal, state, and local agencies.

How Is Fraud Detected


How Long Can You Go to Jail for Insurance Fraud?

You can spend anywhere from one to fifteen years in federal prison for insurance fraud, depending on the length of time the violation of several provisions related to section § 1033 U.S.C. 18 of federal law occurred.

In any other scenario, a minimum of 5 to 10 years of confinement is mandated. Nevertheless, a one-year imprisonment can solely be enforced if the worth or sum that was unlawfully appropriated or pilfered does not surpass $5,000.

By the court, the insuror being put in liquidation or preservation is a major factor in the insuror being put in liquidation or preservation if the deceitful behavior or declaration, like overestimating of property, theft, misuse, and deceitful record, endanger the security of an insuror, and the highest punishments of up to 15 years can be enforced.

Insurance Fraud Statute of Limitations

The federal government has passed a law that extends the statute of limitations for certain cases, including insurance fraud, so the defendant can no longer be prosecuted or face criminal charges for this offense beyond five years from the date of the offense.

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