Can I Get Arrested For Insurance Fraud?
There are two types of insurance fraud crimes in California, and while you can be arrested for either, one can result in significantly harsher penalties. Insurance fraud can occur when you file a baseless or inflated claim or purposely destroy property to collect insurance proceeds. While California enforces its own insurance fraud laws, many cases can also result in federal investigations or charges.
Filing a Fraudulent Insurance Claim
Insurance is a financial instrument that pays out or reimburses you if a covered event occurs. Most people are familiar with health, home, and auto insurance, but many types of property, businesses, or events can be covered by insurance.
Typically, the policyholder must submit a request for payment or reimbursement after an insured event has occurred. These requests are called claims. The claim can be for compensation to cover any insured event, loss, benefit, or injury.
To prove that you committed the crime of filing a fraudulent insurance claim, a California prosecutor must show that you:
- Either made your own false insurance claim or assisted someone else in creating a false claim;
- You knew the claim was fraudulent; and,
- You intended to defraud the insurance company by submitting the claim.
Note that fraudulent insurance claims can stem from actual insurable events. For example, imagine you were in a car accident and went to file a claim for damages. If you say that your laptop was destroyed in the accident when it was not even in your car at the time, this can be fraudulent. Both the claim itself and the amount claimed can be the basis for a fraudulent insurance claim.
Destruction of Insured Property
The second type of insurance fraud is when you deliberately destroy or damage insured property. This covers the classic scenario of burning down the store to collect the insurance money. So long as your action to damage or destroy the property is done with the intent to defraud the insurer, you have committed insurance fraud.
Both types of insurance fraud are specific intent crimes, which means the prosecutor must show that you intended to defraud the insurer through your actions. For example, entering your car in a demolition derby is not unlawful destruction of insured property.
However, you can be convicted of insurance fraud even if the insurance company is not actually defrauded. Even if the insurer does not pay to cover your laptop, if you falsely filed paperwork claiming it was in the car, you may have committed a crime.
Penalties for Insurance Fraud
Filing a fraudulent insurance claim can be charged as either a misdemeanor or a felony. The amount of the fraud will determine whether you face more serious felony charges. Additionally, whether the fraud was related to health insurance can impact your sentence.
As a misdemeanor, filing a fraudulent insurance claim convictions carry punishments of up to a year in county jail and a $10,000 fine. A more severe felony conviction can lead to up to five years in prison and a fine of $50,000 or double the amount defrauded, whichever is greater.
A conviction for destruction of insured property is always charged as a felony. The maximum sentence for this type of insurance fraud is five years in jail and a $50,000 fine.
Are you under investigation for insurance fraud in Anaheim, California? The skilled criminal defense team at Chambers Law Firm can vigorously defend your freedom. Contact our team today at 714-760-4088 or dchambers@clfca.com to request a free initial consultation.
