Insurance Fraud

The average person in Minnesota typically pays for at least one kind of insurance, whether it is automobile, homeowner, life, or health insurance. For as long as insurance has existed in the United States, there have been attempts to defraud the companies that sell the plans and Minnesota is not exempt from the problem.

When a person submits false information in order to obtain insurance or falsifies a claim in order to collect a payment from an insurance company, that individual can be charged with insurance fraud. Convictions for these crimes carry steep penalties that can include lengthy prison sentences as well as heavy fines.

Lawyer for Insurance Fraud Defense in Apple Valley, MN

If you believe that you may be under investigation or you have already been arrested in the Minneapolis-St. Paul area for alleged insurance fraud, it is in your best interest to not say anything to authorities without legal representation. James Blumberg Law aggressively defends clients all over Washington County, Anoka County, Carver County, Dakota County, Hennepin County, Ramsey County, and Scott County.

James Blumberg is a dedicated criminal defense attorney in Apple Valley who helps clients accused of white collar crimes in Woodbury, Lakeville, Maple Grove, Minnetonka, Plymouth, St. Cloud, and many surrounding areas in Dakota County. He can provide a complete evaluation of your case when you call (952) 431-7758 to schedule a free, confidential consultation.

Minnesota Insurance Fraud Crimes Information Center

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Insurance Fraud Charges in Dakota County

Minnesota Statute § 609.611 defines insurance fraud as the commission of any one of the following acts with the intent to defraud for the purpose of depriving another of property or for pecuniary gain:

  • Presenting, causing to be presented, or preparing with knowledge or reason to believe that it will be presented, by or on behalf of an insured, claimant, or applicant to an insurer, insurance professional, or premium finance company in connection with an insurance transaction or premium finance transaction, any information that contains a false representation as to any material fact, or that conceals a material fact concerning an application for, rating of, or renewal of, an insurance policy; a claim for payment or benefit under an insurance policy; a payment made according to the terms of an insurance policy; or an application used in a premium finance transaction;
  • Presenting, causing to be presented, or preparing with knowledge or reason to believe that it will be presented, to or by an insurer, insurance professional, or a premium finance company in connection with an insurance transaction or premium finance transaction, any information that contains a false representation as to any material fact, or that conceals a material fact, concerning any a solicitation for sale of an insurance policy or purported insurance policy; an application for certificate of authority; the financial condition of an insurer; or the acquisition, formation, merger, affiliation, or dissolution of an insurer;
  • Soliciting or accepting new or renewal insurance risks by or for an insolvent insurer;
  • Removing the assets or any record of assets, transactions, and affairs or any material part thereof, from the home office or other place of business of an insurer, or from the place of safekeeping of an insurer, or destroying or sequestering the same from the Department of Commerce;
  • Diverting, misappropriating, converting, or embezzling funds of an insurer, insured, claimant, or applicant for insurance in connection with an insurance transaction; the conducting of business activities by an insurer or insurance professional; or the acquisition, formation, merger, affiliation, or dissolution of any insurer.

It is important to note that the statute of limitations for insurance fraud does not begin to run until the insurance company or law enforcement agency is aware of the fraud, but an alleged offender cannot be prosecuted any later than seven years after the alleged act has occurred.

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Insurance Fraud Penalties in Apple Valley

Sentencing for insurance fraud convictions is the same as sentencing for theft crimes under Minnesota Statute § 609.52. Sentences are based on the greater of the value of property, services, or other benefit wrongfully obtained or attempted to obtain, or the aggregate economic loss suffered by any person as a result of the violation.

Depending on which amount is greater, convictions are punishable as follows

  • More Than $35,000 — Up to 20 years in prison and/or a fine of up to $100,000;
  • More Than $5,000, But Not More Than $35,000 — Up to 10 years in prison and/or a fine of up to $20,000;
  • More Than $1,000, But Not More Than $5,000 — Up to five years in prison and/or a fine of up to $10,000;
  • More Than $500, But Not More Than $1,000 — Up to one year in jail and/or a fine of up to $3,000. If the alleged offender has been previously convicted of insurance fraud, wrongfully obtaining assistance, false representations, robbery, receiving stolen property, burglary, theft, forgery, or financial transaction card fraud within the preceding five years, then a conviction is punishable by up to five years in prison and/or a fine of up to $10,000; or
  • $500 or Less — Up to 90 days in jail and/or a fine of up to $1,000.

An alleged offender who is convicted of insurance fraud must be ordered to pay restitution to persons aggrieved by the offense. Restitution must be ordered in addition to a fine and/or imprisonment but not in lieu of a fine and/or imprisonment.

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Minnesota Insurance Fraud Resources

Fraud Bureau | Minnesota Department of Commerce — The Commerce Fraud Bureau is a law enforcement group comprised of 12 licensed peace officers, two case analysts, and one administrative analyst. On this website, you can learn the differences between soft fraud versus hard fraud and internal fraud versus external fraud. You can also see recent fraud news and submit anonymous reports.

Coalition Against Insurance Fraud — The Coalition Against Insurance Fraud is an alliance of insurance organizations, government agencies, and other individuals that raise awareness about and fights insurance fraud. On this website, you can find various statistics, research, and news about insurance fraud. You can also view many types of “scam alerts,” ranging from automobile to medical to other types of insurance.

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James Blumberg Law | Apple Valley Insurance Fraud Lawyer

Were you arrested or do you think that you could be under investigation for alleged insurance fraud in the Twin Cities? Do not make any kind of statement to authorities until you have contacted James Blumberg Law.

Apple Valley criminal defense attorney James Blumberg represents clients all over the greater Dakota County area, including Eden Prairie, Blaine, Bloomington, Brooklyn Park, Burnsville, Coon Rapids, Eagan, and several other nearby locations. Call (952) 431-7758 or complete an online contact form today to receive a free consultation that will let our lawyer review your case and help you understand your legal options.

 

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