Posted: Fri Dec 14, 2007 2:00 am Post subject: Philly lawyer caught in 25 year insurance scam
You know, it really makes my blood boil when I read about such cases like the one reported the other day in the Philadelphia Daily News.
Since the early 1980's, an unscrupulous Philly lawyer has sent a team of people out to find holes in the road or pavements and then gets others to fall in them.
I'm not joking.
This little plot enabled H. Allen Litt to defraud insurance companies of around $2.5 MILLION in claims.
The scam also involved doctors willing to report that the people had soft tissue injuries. Sites were carefully chosen in front of small businesses, not large one who'd stand a fighting chance in challenging the claims. He even had the audacity to hand out business cards to recruit people into helping with the scheme.
The whole thing is almost laughable until you remember the real costs involved. They're not just monetary. Who's been hurt here? Not the fakers, not the lawyer, not the doctors.
It's those small businesses that most likely had an increase in their premiums when renewal time rolled around because of the claims. Taking advantage of those small stores struggling to make a go of something by targeting their vulnerability is just plain cruel. I wonder how many decided to just pack it all in after that stress and worry.
It's you and I, the ordinary consumers. We absorb the financial brunt in paying these claims out when our insurers have no choice but to increase our premiums. They need to keep the business profitable and increase growth as any good company does.
It's the insurance companies - having lost those funds until whatever legal wrangling is settled to compensate them for that, which may or may not happen. Do they ever get that money back? I don't know.
Too many times we hear people complain about the insurance companies and how strict they are about paying out claims. This man's actions here exemplifies why that's a necessity. The insurers at the end of the day at not just protecting their own business but in the end, our interests as customers too, when they examine cases so diligently and carefully.
Good thing that people are now aware of this. People like him just make premiums skyrocket while he gets a fat wallet, it's utterly ridiculous.
The doctors better get struck off as well.
What I don't get is how he got away with this for over two decades, even though he handed out business cards to recruit people for the scam! _________________ I have a new personal crusade. I'm going to hunt down the people who have strong opinions on subjects they don't understand. Then I'll bop them with this cardboard tube.- Dogbert
I ain't a legal expert, take what I say with a grain of salt.
Posted: Fri Dec 14, 2007 8:03 am Post subject: negligence
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What I don't get is how he got away with this for over two decades, even though he handed out business cards to recruit people for the scam!
Very true!
Whenever I come across such incidents, it gets me a clear feeling that the so-called struggle against insurance frauds is yet to begin properly. 2 decades is simply an epitome of negligence..what else could you possibly imagine! Regards, Sasha
Posted: Fri Dec 14, 2007 8:12 am Post subject: so-called responsible carriers
Hi all,
The above stated incident is a hard fraud- which is nothing but a hard fact today! Yes, life is not just about soft frauds anymore, as I read some where within this site itself.
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The insurers at the end of the day at not just protecting their own business but in the end, our interests as customers too, when they examine cases so diligently and carefully.
I'd just like to say one thing over here, that in the recent past there have been pretty many cases which even depicted the so-called responsible insurance companies teaming up with agents to deceive the claimants of a pre-promised benefit or cover.
So, anything is possible & frauds may be committed in all directions & designed from all directions. Lets not have fixations anymore as to the source of frauds. All the best! ThornyJane _________________ Register Now to have your Insurance queries solved.
What I don't get is how he got away with this for over two decades, even though he handed out business cards to recruit people for the scam!
I know, Quenlin, it almost defies belief when he was so blatant about it too. Justice is prevailing in the end though. Thanks for your comment!
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Whenever I come across such incidents, it gets me a clear feeling that the so-called struggle against insurance frauds is yet to begin properly.
I can understand your point of view completely, sasha! What steps the insurance companies could take apart from what they already do, I have no clue, but obviously the gaps are there needing to be filled. Thanks for taking the time to comment.
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I'd just like to say one thing over here, that in the recent past there have been pretty many cases which even depicted the so-called responsible insurance companies teaming up with agents to deceive the claimants of a pre-promised benefit or cover.
A fair point, ThornyJane. I should have perhaps said " the majority of reputable insurers" instead of "the insurers" or something along those lines. I personally wasn't aware of such cases so it didn't cross my mind to phrase it like that in all honesty. There are of course unfortunately bad apples in every industry that can tarnish the reputation of the good guys.
