The True Cost of Fraud

In a press release recently issued by the Philadelphia District Attorney's Office of Seth Williams, 22 people have been charged and arrested for their alleged involvement in a seven year scheme that used staged slip and fall accidents to defraud more than 21 insurance companies. The DA's Insurance Fraud Unit is reportedly in the process of arresting an additional 24 people involved in the conspiracy.

The Grand Jury Investigation mounted in a multitude of charges encompassing Corrupt Organizations, Conspiracy, Insurance Fraud, False Reports to Law Enforcement, Theft by Deception, and more. Those facing charges are alleged to be runners and claimants. Andrew Gaber, the attorney allegedly at the helm of this operation, however, won't stand trial for his alleged crimes. He recently committed suicide.

The reported suicide of Gaber provides another tragic reminder about the true cost of fraud. Beyond the alleged $400,000 that the participants defrauded the insurance companies, there is the loss of life and prison time. The runners in the alleged scheme were reportedly paid between $100 to $500 cash for bringing in or referring a claim. The claimants reportedly received cash settlements after Gaber's 40 percent fee, medical bills and any liens were deducted. If convicted for their alleged felonies and misdemeanors, they could face sentences ranging from one to 20 years on each count.

While there is a very long list of names associated with this alleged scheme, there is an even longer list of charges that each of these defendants now face. Will any of these defendants potentially facing prison time now stop to consider whether or not their insurance crimes were worth the cost? By no means is this a sympathy piece for those allegedly involved in the scheme. Rather, it's yet another attempt to drive home the message that "It's not worth it," and to put the true cost of fraud into perspective for those who participate or may become involved in fraud schemes.

The NICB, along with its member companies, law enforcement partners, and other representatives, is part of a national joint effort to detect and defeat fraud wherever it exists. Tweet #fightfraud and connect with us on our social channels to join the ongoing fight to combat fraud.

NICB members and all readers are reminded that individuals arrested or indicted should be presumed innocent unless and until proven guilty.

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