This week’s CBTV show is entitled, “Extreme Financial Planning: What Some People Are Doing to Keep the Money Rolling In!”
No matter where you live throughout the U.S., there has likely been a story in your local news about somebody who tried to get away with a crime – sometimes even murder – in an effort to make money. One case that made national headlines recently, involved a woman from South Carolina named Susan Diane Hendricks, who was charged with killing four family members on October 14th. Pickens County Sheriff, David Stone, called the quadruple murder a “horrendous act of evil,” and the reason given for Hendricks committing the crime, was to collect the life insurance money. In another case, closed earlier this year, it was discovered that an 86-year-old man from Florida, Allan Dunn, had kept his wife’s dead body in a freezer for over 10 years. His reason? To continue collecting her Social Security benefits. Dunn told neighbors that since 2000, his wife Margaret was living in a nursing home. Friends of the family eventually found Margaret’s body in a freezer on the back porch, after they had gone to the condo to get Allan’s final affairs, following his suicide.
According to the National Insurance Crime Bureau (NICB), “questionable claims” are pulled for closer review and investigation, based on one of more indicators of possible fraud. For example, common indicators for vehicle fraud, include faked damage, questionable vehicle theft and suspicious fires or arson. The Bureau released its “questionable claims referral reason analysis” for the first half of 2011 in August, which examined six different insurance categories, including property, casualty, commercial, workers’ compensation, vehicle and miscellaneous. The number of “questionable claims” in these six categories rose 18%, between the first half of 2009 and 2011. Jim Quiggle, the Director of “Communications for the Coalition Against Insurance Fraud,” said the poor state of the economy has had a direct impact on the increase in questionable claims. Quiggle said the average fraudster makes small-time claims, such as supposedly losing an engagement ring and reporting the loss, even though it’s later found at a pawnshop.
There are two ways to look at the rising numbers for questionable claims. First, it would seem that more people are turning to crime as a way to help themselves out financially. But, the second part of this equation, involves insurance companies that are investigating more of these cases, to make sure these criminals are caught and brought to justice. Such is the case of 72-year-old, Jonella Howard, who was looking for $300,000 in compensation, following a slip-and-fall accident in a Florida supermarket. However, store video showed Howard moving her foot back and forth on the floor, where the liquid appeared to be spilled. She then fixed her hair and sat down on the floor, and then called for help, after her supposed “fall.” Howard now faces up to 35 years in prison if convicted.
Unlike most “white collar” crimes involving financial fraud, which are committed by seasoned professionals, those guilty of “insurance fraud” tend to be average people that have become desperate to make a buck. But, to be so desperate as to freeze a loved one’s body, or even kill someone, is well beyond “extreme” financial planning. It’s been said that money is the root of all evil, and in these crazy cases that certainly appears to be true! Organizations like the “Coalition Against Insurance Fraud” and the “National Insurance Crime Bureau” were formed to protect businesses and consumers from criminals who commit these heinous acts, which can also lead to a rise in your insurance premiums.
I would like to hear from you on this important topic. Have you witnessed anyone engaging in a fraudulent activity for financial gain? Were you shocked and surprised that they would consider attempting such a deceptive move? Did they get caught or is it still continuing on?
Until next week, Dump Debt, Invest Wisely, Believe in Yourself and Make it Happen!
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