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claims fraud

And returns accompanied by more victims. After a private car and public school bus were involved in a fender-bender in Jackson, Miss., police say, things began to get a bit wild: “Precinct 4 Commander James McGowan says the driver of a white sedan, the only person in the car at the time of the accident, left the scene, more than once, and returned with people claiming to be involved in the wreck and injured.” After further altercations, two people present were “charged with disorderly conduct, interfering with police and inciting a riot.” [WLBT]

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After two insurance companies noticed patterns of suspicious claims associated with the same Philadelphia body shop, 41 persons were charged in what prosecutors say was a multi-faceted array of fraud schemes involving the participation of insurance adjusters, police, a municipal official and tow truck drivers. “According to investigators, Galati Sr. routinely created false accounts of vehicles being damaged by accidents involving falling objects, deer, and other animals to increase amounts received for insurance claims. Investigators say Galati Sr. went as far as to have employees gather and store deer blood, hair and carcasses in the shop’s garage to be used as props in photos that were later submitted with insurance claims.” Other misconduct charged includes deliberate crashing and vandalism of vehicles, and the obtaining of a $1.8 million contract with the city of Philadelphia for which investigators claim Galati’s shop lacked the contract requirements. [NBC Philadelphia, Auto Body News]

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July 10 roundup

by Walter Olson on July 10, 2014

  • Supreme Court agrees to hear case in which feds claim right to ignore deadlines for suit-filing because of Wartime Suspension of Limitations Act (WSLA), passed in 1942 [my new Cato post, earlier]
  • As we’ve advised before, don’t run 10K races while your claim of low-speed-crash injury is pending [Philly.com]
  • Incentivizing complaint-filing: State Bar of California pushes “urgency legislation” empowering it to collect $2500 per enforcement action from targets of its efforts against unauthorized practice of law; association of non-lawyer preparers of legal documents calls it “a cleverly designed effort by the Bar to seek additional revenue from non-members of the Bar.” [Dan Walters, Sacramento Bee via KafkaEsq]
  • Feds get earful on Hawaiian tribalization plan [KHON, Indian Country Today, more, earlier]
  • BP: “Legal feeding frenzy continues four years after the spill” [Melissa Landry, The Hayride]
  • Danke schön! “Overlawyered ist übrigens ein vorzügliches Blog, das sehr oft sehr gute Postings hat zu den Irrungen und Wirrungen des US-amerikanischen Rechtssystems” [Lawblog.de comment]
  • There’ll always be a Berkeley: California city requires medical marijuana dispensaries to set aside some product for free use by indigent and homeless [Reason, KCBS]

June 12 roundup

by Walter Olson on June 12, 2014

  • John McGinnis: As information technology disrupts the legal profession, will lawyers’ clout decline? [City Journal]
  • Law schools, especially of the more leftward persuasion, collecting millions of dollars in cy pres lawsuit diversions [Derek Muller]
  • Who’s still defending embattled medical examiner Steven Hayne? Mississippi attorney general Jim Hood, for one [Radley Balko, earlier here, here, here]
  • Life in America will become more drab if Campaign for Safe Cosmetics gets its way [Jeffrey Tucker via @cathyreisenwitz, earlier on "CPSIA for soap"]
  • LSAT settled with DoJ demands re: disabled accommodation back in 2002 and again just now, and the differences between the two settlements tell a story [Daniel Fisher, earlier] Some prospective students will be losers [Derek Muller]
  • “‘Swoop and Squat’: Staged car accidents, insurance fraud rise in L.A.” [Los Angeles Times]
  • Toughen duty for California psychiatrists to inform on dangerous patients? Awaiting backfire in three, two, one… [Scott Greenfield]

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A big win for the oil company before a Fifth Circuit panel, fighting what it says is systematic large-scale fraud in the Gulf Coast spill economic-damage settlement. [Bloomberg News, earlier here, here, etc.]

August 29 roundup

by Walter Olson on August 29, 2013

Medical roundup

by Walter Olson on August 22, 2013

  • No, ma’am, I’m not going to diagnose your kids with PTSD after your low-speed auto accident, but I’m sure some other doc will [White Coat]
  • In time to avert catastrophe? “FDA reboot of antibiotic development” [David Shlaes] Role of price controls in shortages of sterile injectables [ACSH]
  • Trial lawyers launch campaign to roll back MICRA, law that has limited California med-mal payouts [KPBS, L.A. Times]
  • DNA panopticon beckons: “Mississippi law requires cord blood from some teen moms” [Emily Wagster Pettus, AP, earlier]
  • Dear N.Y. Times: please make up your mind whether it’s OK to break health privacy laws [SmarterTimes]
  • Committee of AMA decides on schedules by which doctors are paid. And you were expecting it to be done how? [Arnold Kling]
  • “The more your doctor worries about getting sued, the more you’ll end up spending on medical tests” [MarketWatch on Michelle Mello study in Health Affairs] Oklahoma high court used strained rationale to strike down certificate of merit law [Bill of Health]

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July 27 roundup

by Walter Olson on July 27, 2013

  • Authorities arrest woman they say obtained $480,000 by falsely claiming injury from Boston Marathon bombing [CNN]
  • More on the buddy system by which Louisiana officials pick private-practice pals for contingency contracts [WWL, The Hayride, Melissa Landry/La. Record; earlier on levee district's new megasuit against oil industry]
  • “Why would the President meet with the IRS chief counsel rather than his own counsel at OLC, and without the IRS commissioner present?” [Paul Caron, TaxProf] “The IRS as microcosm”: government lawyers lean left politically [Anderson, Witnesseth]
  • California county lead paint recoupment case finally reaches trial, judge jawbones defendants to settle [Mercury-News, Chamber-backed Legal NewsLine]
  • The insanity of film production local incentives, Georgia edition [Coyote]
  • Questioning NYT’s underexplained “Goldman aluminum warehouse scam” tale [Yglesias, Stoll, Biz Insider]
  • Yes, government in the U.S. does do some things to accommodate Islam, now don’t get bent out of shape about it [Volokh]

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“Two Fordham University law school classmates who set up a law practice together a few years after graduating are now both facing nine-month suspensions for pursuing a fraudulent personal injury case.” Daniel Levy and Shane Rios represented a woman who claimed to have slipped in front of a Yonkers church; when they investigated the sidewalks, they found no problem with the church’s, but did find a trip hazard in front of a house across the street. They advised her that she would have a winning case only against the homeowner, not the church, and she changed her story accordingly. They proceeded to conceal the original stance of the case both from the court and from a third lawyer they brought in to help. To the New York courts, this misconduct merited a suspension only of nine months. [ABA Journal, New York Law Journal]

P.S. “Maryland would have disbarred these clowns.” [@BruceGodfrey]

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Posting videos of yourself to YouTube, for example, is definitely not a good idea, at least unless they are consistent with the disability you are claiming. “Don’t go climbing trees or fixing your roof in public. And certainly do not upload to YouTube a video that shows you half-naked and covered in tinfoil, doing ‘the robot’ to the tune of Steppenwolf’s ‘Magic Carpet Ride.’” [Slate, Utah A.G.'s office] More on “dubious disability”: Lee Habeeb, NRO. Earlier on growth of federal Social Security Disability payments here and here.

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A Florida cardiologist has been sentenced to six years in federal prison and ordered to pay $4.5 million in restitution after serving to review the echocardiograms of more than 1,100 prospective claimants on a fen-phen settlement trust fund; many of the claimants he diagnosed were not in fact ill. “The physician was also to be compensated $1,500 for each claimant who qualified for benefits when that person’s claim was paid, according to the U.S. Attorney’s Office for the Eastern District of Pennsylvania, which prosecuted the case.” At trial, he testified “that his medical reports had been forged by the mass tort lawyer who had hired him on a contingency fee basis, the record states.” As I observed in The Litigation Explosion, medicine, like law, is a profession in which the prohibition of contingency or success fees developed early, in large part because it was expected that such fees would work to the benefit of dishonest practice. [Penn Record]

It’s behind a paywall, but TortsProf has a few highlights. Some lawyers are battling to stave off transparency that could catch out counsel and clients who tell inconsistent stories from one case to the next in the course of squeezing maximum payouts from bankruptcy trusts set up to handle claims against asbestos defendants; the trusts themselves have extensive managerial ties to leading plaintiff’s-side firms.

P.S. And House hearings [Bloomberg News, Chamber-backed Legal NewsLine].

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Torts roundup

by Walter Olson on March 6, 2013

  • Despite sparseness of evidence, lawyers hope to pin liability on hotel for double murder of guests [Tennessean]
  • Celebrated repeat litigant Patricia Alice McColm sentenced after felony conviction for filing false documents in Trinity County, Calif. [Trinity Journal, more, Justia, earlier] Idaho woman challenges vexatious-litigant statute [KBOI]
  • “2 Florida Moms Sentenced for Staged Accident Insurance Fraud” [Insurance Journal, earlier]
  • With Arkansas high court intent on striking down liability changes, advocates consider going the constitutional amendment route [TortsProf] Fifth Circuit upholds Mississippi damages caps [PoL]
  • What states have been doing lately on litigation reform [Andrew Cook, Fed Soc] Illinois lawmakers’ proposals [Madison-St. Clair Record] Head of Florida Chamber argues for state legal changes [Tampa Tribune]
  • Crowd of defendants: “Ky. couple names 124 defendants in asbestos suit” [WV Record]
  • A bad habit of Louisiana courts: “permitting huge recoveries without proof of injury” [Eric Alexander, Drug and Device Law]

April 30 roundup

by Walter Olson on April 30, 2012

  • Because Washington knows best: “U.S. ban sought on cell phone use while driving” [Reuters, earlier here, here, here, etc.] More here; and LaHood spokesman says Reuters overstated his boss’s position.
  • Janice Brown’s Hettinga opinion: Lithwick can’t abide “starkly ideological” judging of this sort, except of course when she favors it [Root, earlier] At Yale law conclave, legal establishment works itself into hysterical froth over individual mandate case [Michael Greve] And David Bernstein again corrects some Left commentators regarding the standing of child labor under the pre-New Deal Constitution;
  • Latest antiquities battle: Feds, Sotheby’s fight over 1,000-year-old Khmer statue probably removed from Cambodia circa 1960s [VOA, Kent Davis]
  • Sebelius surprised by firestorm over religious (non-) exemption, hadn’t sought written opinions as to whether it was constitutional [Becket, Maguire] Obamanauts misread the views of many Catholics on health care mandate [Potemra, NRO]
  • “20 Years for Standing Her Ground Against a Violent Husband” [Jacob Sullum] How Trayvon Martin story moved through the press [Poynter] And Reuters’ profile of George Zimmerman is full of details one wishes reporters had brought out weeks ago;
  • Coaching accident fraud is bad enough, making off with client funds lends that extra squalid touch [NYLJ]
  • Kip Viscusi, “Does Product Liability Make Us Safer?” [Cato's Regulation magazine, PDF]

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“A New York lawyer busted a trio of Hungarian scammers trying to fake the death of a 5-year-old girl and her mom aboard the Costa Concordia cruise ship. … ‘Even after they were busted, they said “we would have gotten away with it” if the neighbor [posing as a grandmother] hadn’t embellished the story and said the girl was missing too,’ [attorney Peter] Ronai said.” [NY Daily News] “‘They’re called “jump-ons.” It’s normal, this is just on a grander scale,’ Ronai said. ‘People will do horrible things for money.’” [UPI]

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August 4 roundup

by Walter Olson on August 4, 2011

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There was weirdly little resistance when a scamster named Kevin Waltzer and his associates posed as investors and defrauded three securities class action settlement funds of more than $40 million. How about better verification mechanisms? [Trask, Trentonian]

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CBS News takes a look at some instances in which in-store cameras captured footage of, e.g., victims carefully positioning the spills on which they intended to slip. More: Legal Blog Watch.

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