What Is Insurance Fraud?

Insurance fraud, broadly defined, is when someone deliberately deceives others in order to get a payment from an insurance company to that they aren’t actually entitled. Insurance fraud is a severe accusation with grave repercussions from the criminal justice system.

The sooner you get in touch with a lawyer, the sooner you can create a legal strategy to get the charges dropped, or get the case settled in your favor. Fraud is a complex crime, and it’s essential to have the best representation and legal advice you can find.

If you find yourself facing insurance fraud, a skilled California criminal defense lawyer from LibertyBell Law can help you address it strategically. 

Orange County Insurance Fraud Lawyer

Since insurance is designed to pay for personal injury situations or property damage, insurance claims can add up to a lot of money, making them frequent targets for fraud.

Insurance fraud isn’t just committed by customers. Claims adjustors, agents, and even insurance companies themselves can also potentially commit fraud and go to trial. 

In the legal system, the intent to deceive another person or entity is an essential part of defining fraud. To be found guilty of the crimes, the prosecutor needs to prove that you intentionally misrepresented information in order to benefit from it.

More importantly, the fraud crime itself must be completed. Simply providing an insurance company with false information does not qualify as fraud unless it was done as part of an attempt to get a payout. In court, these two features are often the main focus of both defense attorneys and the prosecution.

Types of Insurance Fraud

There are as many types of insurance fraud as there are types of insurance. However, some types of insurance fraud are more common. Here are some of the cases we see most often.

Worker’s Compensation Fraud

Worker’s compensation fraud occurs when someone aims to deceive insurance companies so that a person may receive payment for medical expenses, lost work wages, and more. This insurance is essential for keeping workers safe and helping them heal when they do get injured. 

However, insurance companies are concerned about the potential for fraud. They investigate claims thoroughly and hope to eliminate instances of fraud. 

Automotive Insurance Fraud

In fraud cases involving automotive insurance, there are many ways that fraud can take place. When a consumer commits fraud, they may exaggerate the extent of the damage, stage accidents, or omit certain details.

More extensive fraud scams may include reporting a car stolen after intentionally destroying it, giving a false address to lower your insurance premium, or filing multiple claims after an accident. 

Homeowner’s Insurance Fraud

Homeowner’s insurance fraud includes all fraudulent claims about damage to a home. In some situations, this just means exaggerating the damage to your home. Other times, it may even involve sending in a claim for a damaging event that never happened. 

Other forms of homeowner fraud may involve collaborating with a repair person to send an inflated bill to the insurance company for personal gain. Omitting information can also count as fraud if a customer does so to have the insurance cover damage that falls outside of the policy. 

Potential Penalties for Insurance Fraud

In California, most insurance fraud can be categorized as either a misdemeanor or a felony, depending on the situation. A few factors go into how a case is handled. 

First, the court will take into account your criminal history or lack of it. Previous fraud convictions will generally result in your case being treated as a felony case. Other convictions may also be taken into account.

Secondly, they will consider the severity of the offense. If there was extensive fraud affecting many people or involving a large amount of money, they may be more likely to handle it as a felony. 

For misdemeanors, the most common penalty is a fine and a possible jail sentence, including up to one year in county jail. The fine can be up to $150,000 or double the amount taken in the fraud scene.

For a felony, those convicted could face up to five years in prison. The maximum fee is also $150,000, or twice the fraud amount if that is greater. 

Restitution is another common penalty. Those convicted of insurance fraud often have to pay damages to the insurance company and any other harmed parties, such as an employer, auto company, or other entity. 

Working with a criminal defense attorney in LibertyBell Law can help you avoid more serious charges or a longer sentence. Defense lawyers have years of experience arguing down sentences and protecting clients’ rights. 

Handling Insurance Fraud Charges

Facing charges of any kind can be stressful, especially for a crime that has such a significant impact on your personal and professional life. 

Defense attorneys work with clients to build a legal strategy. Most fraud defense approaches use the following as a base:

• Arguing a lack of intent to commit fraud
• Arguing that the prosecution lacks proof

However, an experienced attorney can personalize each legal defense and ensure that it reflects the legal strategy the client wants as well as the specific situation. 

We understand the effect a conviction can have on the rest of your life, so our law firm fights hard to protect your future. Being convicted of a felony, for example, means you lose the right to vote, and it can also affect housing and job opportunities. 

Choose a Reliable Attorney for Your Case

When you are facing possible insurance fraud charges, you need a reputable, experienced California criminal defense lawyer on your side. Fraud convictions have a serious legal, financial, and social impact. Working with a legal expert will help you argue your side of the story and get the best possible outcome. 

We pride ourselves on getting cases dismissed, charges dropped, and other positive results for our clients. Our testimonials and track record show how effective our legal approach is.

Call LibertyBell Law today to learn more about how we can help! During your free consultation, we can discuss the possible outcomes for your unique case.