New York City Insurance Fraud Attorney

Insurance is based heavily on trust: trust from the policyholder that, should they be injured, their insurance provider will be there to lean on, and trust from the provider that the policyholder will not abuse their financial relationship. But sometimes, that trust is broken.

Insurance fraud is a common charge in New York City and beyond. The Coalition Against Insurance Fraud reports that in New York, personal injury claims shot up a staggering 79% between 1999 and 2000. The Coalition goes on to say that fraud “costs each insured driver in New York State $75-$115 per year,” while the New York State Department of Financial Services says that over 11,500 reports of suspected fraud have already been made in the first half of 2013 alone.

If you or a loved one is facing allegations of committing insurance fraud, they are also facing a conviction of the most severe possible classification of misdemeanor — or even a felony. Insurance fraud is widespread, and New York City is tough on those who are convicted. Individuals charged with insurance fraud face fines and incarceration — not to mention a blow to their reputation, personal life, and self esteem. Call Dietrich P. Epperson at (347) 561-0025, or contact me online to schedule a free consultation — before it’s too late.

Insurance Fraud and Life Settlement Fraud

Insurance fraud and life settlement fraud are covered by Article 176 of the New York Penal Law. Each type of fraud is classified by degrees, with offenses in both categories ranging in severity from A Misdemeanor to B Felony.

Insurance Fraud

Insurance fraud in New York City can be committed in the 5th, 4th, 3rd, 2nd, or 1st Degree. Under Section 10 of Article 176, “A person is guilty of insurance fraud in the fifth degree when he commits a fraudulent insurance act.” Actions that are considered fraudulent insurance acts include:

  • deliberately presenting (or planning to present) an insurer with false information
  • deliberately withholding or concealing information from an insurer

Insurance fraud in the 5th Degree is considered a Class A Misdemeanor in New York City, and is punishable by up to a year in prison.

Insurance fraud in the 4th, 3rd, 2nd, and 1st Degree is defined by the same guidelines, with the added point of specific monetary values for the fraud being assigned to each degree.

Degrees of Insurance Fraud

  • 4th Degree: more than $1,000; E Felony, up to four years in prison
  • 3rd Degree: more than $3,000; D Felony, up to seven years in prison
  • 2nd Degree: more than $50,000; C Felony, up to 15 years in prison
  • 1st Degree: more than $1,000,000; B Felony, up to 25 years in prison

Life Settlement Fraud

Also covered by Article 176, life settlement fraud definitions and penalties closely mirror those associated with insurance fraud. Actions that are considered fraudulent life settlement acts include:

  • deliberately presenting (or planning to present) a life settlement broker, provider, intermediary, or other agent with false information
  • deliberately withholding or concealing information from a life settlement broker, provider, intermediary, or other agent

Degrees of Life Settlement Fraud

  • 5th Degree: A Misdemeanor, up to one year in prison
  • 4th Degree: more than $1,000; E Felony, up to four years in prison
  • 3rd Degree: more than $3,000; D Felony, up to seven years in prison
  • 2nd Degree: more than $50,000; C Felony, up to 15 years in prison
  • 1st Degree: more than $1,000,000; B Felony, up to 25 years in prison

If you or someone you love is facing allegations of insurance fraud or life settlement fraud, you need to contact a seasoned New York City insurance fraud attorney immediately. Dietrich P. Epperson has extensive experience representing clients just like you. Call now at (347) 561-0025 to schedule a free, confidential consultation.

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