Travel Insurance Fraud Case Leads to Guilty Plea and Restitution
On November 12, 2024, a Lawrence man pleaded guilty to charges of filing a fraudulent insurance claim and larceny over $1,200. The case was continued without a finding for two years, and the individual was ordered to pay $70,299 in restitution. The fraud involved multiple parties submitting fraudulent claims to various insurance companies while falsely claiming that the same claims had not been filed with other insurers.
The investigation revealed a network of fraudulent activity involving a Lawrence woman and two men, who collectively submitted claims to multiple insurance companies. They falsely asserted that the claims had not been submitted or paid by any other insurance carriers. Bank records spanning from November 6, 2017, to April 24, 2019, uncovered that, in addition to the initial $166,251 in insurance payments, the individuals had deposited an additional $24,941 in insurance checks. This brought the total amount of fraudulently obtained funds to $191,192.
Further investigation showed that checks, made payable to third parties, were deposited into accounts in the Dominican Republic, specifically at Banco Multiple Santa Cruz in Santo Domingo. The documents submitted by the claimants, including police reports, medical records, and bank checks, had been altered to support their fraudulent claims.
One of the individuals involved had filed a claim while traveling in Guayaquil, Ecuador, on November 15, 2017, asserting a loss during his trip. However, investigators discovered that this individual had filed similar claims with other travel insurance companies in an attempt to obtain multiple payouts. The fraudulent claims were tied to losses reported in both South America and the Dominican Republic.
As a result of this complex scheme, the total amount of fraudulent insurance payments reached an astonishing $191,192. The guilty plea and restitution are part of ongoing efforts to address and prevent insurance fraud, which continues to undermine the integrity of the insurance industry.
