Tow company operator, business charged in connection with alleged inflated billing scheme
On April 18, 2024, Vincent Fannick was arrested in Allegheny County. Criminal charges were also filed against Vince’s Towing and / or Reliable Accident Services, a towing business allegedly owned and operated by Fannick. According to the criminal complaint, the Office of Attorney General’s Insurance Fraud Section and the Allegheny County Police Department conducted a joint investigation, based on allegations that Fannick billed insurers at significantly inflated rates for towing and related services purportedly provided by the business. The investigation allegedly revealed that between February 19, 2023 and February 7, 2024, Fannick submitted 27 separate invoices to 11 insurance companies, for payments totaling $298,945.00. According to the complaint, that amount included a total of $105,640.00 in “accident services” fees. The complaint stated that the tows reflected in each of the 27 invoices involved distances of 6 miles or less. The investigation allegedly revealed that Fannick’s business charged customers for tow services and accident fees even when the vehicles were not towed from an accident scene. According to the complaint, the investigation found that Fannick or one of his representatives required each customer to sign an invoice that contained no pricing information. After the vehicle was towed, the customer’s insurer allegedly received an invoice for services in amounts between $9,460.00 and $13,105.00. According to the complaint, these amounts were exponentially higher than the charges typically billed to insurers for towing services. Fannick and his business were charged with four counts of Corrupt Organizations (F1), two Counts of Dealing in Proceeds of Unlawful Activities (F1), one count of Criminal Conspiracy (F1), 27 counts of Insurance Fraud (F3), 27 counts of Theft by Unlawful Taking (F3), 27 counts of Theft by Deception (F3) and 27 counts of Securing Execution of Documents by Deception (M2).
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Insurance agency owner faces charges for alleged theft of premium payments
On April 9, 2024, Chad Skena was arrested in Allegheny County. According to the criminal complaint, Skena and his business, the Chad G. Skena Insurance Agency, were subjects of a joint investigation by the Office of Attorney General Insurance Fraud Section, the Pennsylvania Insurance Department, the Allegheny County District Attorney’s Office, the Monroeville Police Department, the Murrysville Police Department. The investigation allegedly revealed that between August 18, 2020 and March 15, 2022, Skena misappropriated or failed to remit approximately $60,000 in client insurance premium payments to the intended insurance company recipients. Skena’s alleged actions affected at least 12 individuals who held policies with insurance companies including Safeco Insurance, Progressive Insurance, Nationwide Insurance and Grange Insurance. According to the complaint, the investigation revealed that Skena randomly contacted existing customers and offered to bundle their policies to save them money. The complaint stated that after the customers provided Skena with credit/debit cards or bank account information, Skena used the information to transfer money or make payments to his personal bank accounts or online payment sources. When customers confronted him, Skena allegedly gave different reasons for why the money was “accidentally withdrawn” and why he could not simply refund the payments. The complaint stated that in all of these instances, Skena failed to forward the premium payments to the designated insurance companies. Skena was charged with 7 counts of Theft by Deception (F3), 4 counts of Theft by Deception (M1), one count of Theft by Deception (M2), 7 counts of Theft by Failure to Make Disposition (F3), 4 counts of Theft by Failure to Make Disposition (M1), one count of Theft by Failure to Make Disposition (M2) and three counts of Access Device Fraud (F3).
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On April 29, 2024, SheQuelle Harris was arrested in Dauphin County. According to the criminal complaint, on September 26, 2022, Harris obtained a homeowner’s policy from Nationwide Mutual Insurance Company (NMIC). On September 30, Harris allegedly reported to NMIC that water entered her closet from the apartment above hers earlier that day, causing the ceiling in Harris’ Harrisburg apartment to fall. The complaint stated that Harris claimed that the loss resulted in approximately $4000.00 in damages to electronics, winter coats, sheets and blankets stored in her closet. However, a subsequent investigation by NMIC allegedly revealed that on January 17, 2022, Harris filed a similar water damage claim with Allstate Insurance that included much of the same property. According to the complaint, the property’s landlord told investigators that Harris advised the landlord of the damage on June 22, 2022. Investigators obtained a Harrisburg City Codes Enforcement Office report that allegedly showed that a code inspection was conducted at the property on August 26, 2022. According to the complaint, the report mentioned the damage to Harris’ closet. NMIC allegedly determined that the loss occurred prior to the policy inception and denied Harris’ claim. Harris was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt/Theft by Deception (F3).
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On April 26, 2024, Brittany Hill was arrested in Philadelphia County. According to the criminal complaint, on March 10, 2022, at approximately 10:22 AM, Hill used an online application to purchase an auto policy from Root insurance for her 2014 Toyota Camry. On March 18, 2022, Hill allegedly used the insurer’s online application to report that the Camry was involved in an accident that occurred at 9:45 AM on March 10, 2022. During a subsequent recorded telephone conversation, Hill allegedly told a Root representative that the crash occurred at 10:30 AM, rather than at 9:45 AM. According to the criminal complaint, Hill confirmed that Philadelphia police responded to the scene of the accident. Hill allegedly provided Root with a copy of a police report that purportedly showed that officers were dispatched to the crash scene at 10:34 AM. However, the complaint stated that an investigation revealed that police were dispatched at 7:55 AM, which was prior to the inception of Hill’s coverage. On March 21, 2022, Root notified Hill that her claim would be denied. Hill allegedly contacted Root on May 18, 2022, and asserted that the officer who responded to the accident had prepared an amended report, correcting the time of the crash. Hill allegedly emailed to the insurer a copy of the purported amended report. The complaint stated that investigators reviewed the report and noted that formatting appeared similar to the formatting found on New York state crash reports. Investigators allegedly confirmed that the responding officer never changed or amended the original Philadelphia police crash report. Hill was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt/Theft by Deception (F3), one count of Forgery (M1), one count of Unsworn Falsification to Authorities (M2), one count of Criminal Use of a Communication Facility (F3) and one count of Unlawful Use of a Computer (F3).
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On April 22, 2024, Jennifer Gehris was arrested in Berks County. According to the criminal complaint, on November 3, 2022, Gehris obtained an automobile insurance policy from Glacier Insurance Company for her 2015 Kia Optima. Gehris allegedly rejected collision coverage at the time. The complaint stated that on April 17, 2023, at 7:14 PM, Gehris contacted her insurance agent and asked to add collision coverage for her Kia Optima. During the process of amending the policy, Gehris allegedly advised that the Kia had no pre-existing damage. According to the complaint, Gehris filed a claim with Glacier on April 18, 2023 at 2:43 PM, in which she reported that her Kia was involved in an accident between 8:00 PM and 8:30 PM on April 17. However, the complaint further stated investigators obtained a copy of the police crash report, which listed the time of the accident as 6:43 PM. According to the complaint, Glacier determined that the loss occurred before Gehris added collision coverage to her policy. The claim was denied. Gehris was charged with one count of Insurance Fraud (F3), one count Criminal Attempt/Theft by Deception (F3) and one count of Insurance Fraud (M1).
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On April 18, 2024, Ronald Valentine was arrested in Bedford County. According to the complaint, on September 28, 2022, Valentine contacted Assurant Insurance Company and filed a claim against his homeowner’s policy for damages to his residence, including his garage door and HVAC system. Valentine allegedly told Assurant that the damage occurred in January of 2022, when his girlfriend’s Volkswagen Beetle slid on his icy driveway and struck his residence. The complaint stated that Assurant paid Valentine’s claim in the amount of $2,147.65. According to the complaint, investigators determined that the facts of loss that Valentine provided to Assurant mirrored the facts of loss that Valentine and his girlfriend previously provided to Progressive Insurance in support of the girlfriend’s January 2022 claim for damage to her Volkswagen Beetle. The complaint stated that a previous investigation of the Progressive claim revealed that the girlfriend’s car could not have damaged Valentine’s home, because the Volkswagen was inoperable at the time. The Office of Attorney General’s Insurance Fraud Section previously investigated the Progressive claim and filed criminal charges against Valentine and his girlfriend. According to the complaint, during an interview with investigators, Valentine admitted that he provided false information to Assurant concerning his homeowner claim. Valentine allegedly admitted that his girlfriend’s car was inoperable and could not have caused the damage to his property. Further, Valentine allegedly told the agents that a truck struck and damaged his residence and air conditioning unit in 2021. Valentine was charged with one count of Insurance Fraud (F3) and one count of Theft by Deception (F3).
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On April 17, 2024, Debra Ritchie was arrested in Beaver County. According to the criminal complaint, Ritchie’s National General Insurance policy was cancelled for non-payment on October 21, 2023. On November 10, 2023 at 12:32 PM, Ritchie allegedly reinstated the canceled coverage. According to the complaint, Ritchie went online later that day and filed a claim with National General, in which she reported that her insured vehicle was involved in an accident with another vehicle at approximately 1:00 PM. The complaint stated that during a recorded statement to National General, Ritchie advised that police responded to the accident and that her vehicle was towed from the scene. According to the complaint, investigators spoke with the police department, the tow company, and the driver of the other involved vehicle, and determined that the crash actually occurred at approximately 11:58 AM on November 10, which was before Richie reinstated her coverage. National General denied the claim. Ritchie was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt/Theft by Deception (F3).
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On April 9, 2024, Sharron Lowry (aka Samuel English) was arrested in Philadelphia County. According to the criminal complaint, at 7:38 AM on September 8, 2020, Lowry telephoned New Jersey Manufacturers Insurance Company (NJM) and reported that his vehicle was vandalized between the hours of 1:00 AM and 6:30 AM that morning. The complaint stated that Lowry told the insurer that he discovered orange paint sprayed on his vehicle’s hood and interior. Further, he allegedly reported that the seats had been cut, and two of the vehicle’s tires were slashed. According to the complaint, Lowry stated that his vehicle was in good condition prior to the vandalism. However, at 3:35 PM that day, Lowry allegedly called the insurer and reported that his car was involved in a collision with another vehicle, which then fled the scene. The complaint stated that Lowry advised that the crash occurred at approximately 12:30 AM, before his car was vandalized. Accordingly, Lowry allegedly misrepresented the condition of his car when he made his claim for vandalism damage. The complaint further stated that in a subsequent phone call, Lowry told an NJM representative that no passengers were in his vehicle when the crash occurred. On September 15, 2020, Lowry allegedly completed and returned to NJM a Driver Report of Automobile Accident form, but left blank a section of the form that asked for the names of any passengers in the vehicle at the time of the accident. Although Lowry allegedly claimed that he was alone in his car at the time of the crash, the complaint stated that on September 16, 2020, NJM received a call from an individual who reported that he was riding in Lowry’s vehicle at the time of the accident, and wanted to submit a claim for his accident-related injuries. Further, the complaint stated that Lowry subsequently told NJM that he did not call the Philadelphia police to the accident scene, then corrected himself and claimed that he had called police to report the crash and the vandalism to his vehicle. During a December 1, 2020, Examination under Oath, Lowry reaffirmed that he called police about the collision and the subsequent vandalism. However, according to the complaint, Philadelphia Police Department records revealed that no 911 calls were received and no report was completed for either incident. According to the complaint, Lowry’s alleged misrepresentation that he had called police was material to his claim, because Pennsylvania Law states that if an insured vehicle is struck by a “hit and run” driver, the insured driver is required to notify police, or be denied bodily injury coverage under the policy’s uninsured motorist provision. The complaint further stated that Lowry owed a balance of $14,116.00 to the vehicle’s lienholder, and his latest payment was overdue when the insurance claims were filed. Lowry was charged with two counts of Insurance Fraud (F3), two counts of Criminal Attempt/Theft by Deception (F3) and one count of Criminal Use of Communication Facility (F3). Lowry already faces separate Insurance Fraud charges for which he was arrested on January 26, 2023.
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On April 9, 2024, Charles McBride was arrested in Montgomery County. According to the criminal complaint, McBride’s Progressive Insurance automobile policy was cancelled on April 26, 2023, after McBride failed to pay the policy premium. The complaint stated that at approximately 8:00 AM on May 17, 2023, McBride discovered that someone vandalized his vehicle while it was parked outside of his residence. According to the complaint, the back passenger window was smashed and the vehicle’s steering column and ignition were damaged. Shortly after discovering the vandalism, McBride allegedly utilized Progressive’s website to reinstate his cancelled policy. The complaint stated that during the reinstatement process, at 8:13 AM on May 17, McBride electronically signed Progressive’s Statement of No Loss, indicating that his vehicle was not damaged during the policy lapse period. On May 18, 2023, at 8:26 AM, McBride allegedly used Progressive’s online claim system to report that he discovered the vandalism at 7 AM that day. During a phone conversation with a Progressive representative on May 19, 2023, McBride allegedly claimed that the vandalism occurred sometime between 10:00 PM on May 16, 2023 and 8:00 AM on May 18, 2023. The complaint further stated that McBride then corrected himself and told the insurance representative that he last saw his undamaged vehicle at 10:00 PM on May 17. Further, McBride allegedly told the representative that his RING door camera failed to capture the incident and that he did not know of any witnesses to the vandalism. According to the complaint, McBride sent an email to Progressive that contained two photographs of the damage. Progressive representatives reviewed the photo metadata, which allegedly revealed that the pictures were taken at 8:06 AM on May 17, 2023, which was before McBride’s policy reinstatement. The claim was denied. McBride was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt/Theft by Deception (F3), one count of Criminal Use of a Communication Facility (F3) and one count of Insurance Fraud (M1).
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On April 5, 2024, Ibrahima Toure was arrested in York County. According to the criminal complaint, on September 3, 2022, Toure contacted Liberty Mutual via telephone to file a claim for theft of property from, and vandalism damage to, a residence that he owned in Philadelphia. Toure allegedly told the insurer that the loss, estimated to be in excess of $66,000, occurred while an unknown person was living at the residence without Toure’s permission. According to the complaint, Toure initially could not provide the insurer with an exact date for the loss. The complaint stated that Toure eventually chose December 5, 2021, because it was then that Toure first saw the unknown person in his home and reported the matter to Philadelphia police. According to the complaint, on November 23, 2021, Toure completed a Liberty Mutual application to insure the property. Toure allegedly indicated on the application that the Philadelphia property was his principal residence, although according to the complaint, he was living in Pittsburgh at the time. The complaint further stated that on the application, Toure indicated that no one had been living at the insured property. However, an investigation allegedly revealed that several weeks earlier, Toure contacted Philadelphia police and filed a civil suit in Philadelphia Common Pleas Court to evict a “squatter” from the residence. The complaint also stated that in response to an application question concerning whether Toure or any other occupant of the property had a claim or loss during the past five years, Toure indicated “NO”. However, investigators allegedly determined that Toure previously filed a claim with Homesite Insurance for vandalism and theft at the property, similar to the loss in the Liberty Mutual claim. The complaint stated that Liberty Mutual denied Toure’s claim on the basis that the loss began or occurred prior to the policy inception. Toure was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt/Theft by Deception (F3), one count of Criminal Use of a Communication Facility (F3), and one count of Insurance Fraud (M1).
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On April 5, 2024, Wilberto Lopez-Abreu was arrested in Philadelphia County. According to the criminal complaint, on January 21, 2022, the Office of Attorney General seized a 2021 Honda Accord Sport during a joint investigation by the Bureau of Narcotics and the Insurance Fraud Section. The complaint stated that since the January 2022 date of the seizure, the vehicle has remained in the possession of the Office of Attorney General. Despite the fact that Lopez-Abreu did not possess the Honda, investigators discovered that on March 19, 2022, Lopez-Abreu allegedly titled and registered the vehicle with PennDOT. According to the complaint, the documents received by PennDOT indicated that Lopez-Abreu insured the vehicle through Infinity Auto Insurance Coverage, which is the underwriter for Kemper Insurance Company. Kemper allegedly confirmed that Lopez-Abreu obtained a policy for the Honda, however the policy never was in force because no premiums payments were received. On July 21, 2022, Lopez-Abreu allegedly obtained coverage for the vehicle from Agency Insurance Company (AIC). The complaint further stated that on July 27, 2022, nearly 6 months after the Office of Attorney General seized the Honda, Lopez-Abreu reported to the Philadelphia Police Department that the Honda had been stolen. He allegedly told police that the vehicle had been parked a few blocks from his home when the theft occurred, sometime between July 12, 2022 and July 27, 2022. According to the complaint, on July 27, Lopez-Abreu contacted AIC and filed a claim for the stolen vehicle. During an interview with AIC representatives, Lopez-Abreu allegedly stated that the theft could have taken place on July 24, 2022. He allegedly promised to provide the insurer with the vehicle’s title, registration, bill of sale, photos of the Honda, as well as a copy of the police theft report. However, according to the complaint, AIC never received any of the requested documentation. The insurer denied Lopez-Abreu’s claim. Lopez-Abreu was charged with two counts of Insurance Fraud (F3), one count of Criminal Attempt/Theft by Deception (F3), one count of Criminal Use of a Communication Facility (F3), one count of False Reports to Law Enforcement (M3).
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On April 4, 2024, Steven Bare was arrested in Lebanon County. According to the criminal complaint, on April 6, 2023, Bare obtained liability coverage for his motorcycle from Progressive Insurance. At 5:46 PM on May 10, 2023, Bare allegedly went online and requested additional insurance for the bike, including comprehensive, collision, carried contents, and accessory coverages. According to the complaint, at 12:06 PM the following day, Bare reported to Progressive that the motorcycle was involved in a crash as he was riding it to work that morning. Bare allegedly stated that Pennsylvania State Police and a local fire department responded to the accident scene, but he did not receive a copy of the crash report. According to the complaint, Bare told the claims representative that he managed to ride the bike home after the accident, and took the day off work. At 6:18 PM on May 11, 2023, Progressive allegedly received a message from Bare, stating that he had mistakenly reported the wrong date of loss, because the crash actually occurred on May 10. According to the complaint, a claims representative subsequently contacted the responding fire department and learned that fire crews were dispatched to the scene at 5:07 PM on May 10, 2023, which was shortly before Bare made the additions to his policy. Progressive denied the claim. Bare was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt/Theft by Deception (F3).
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On April 4, 2024, Jennifer Khouri was arrested in Dauphin County. According to the criminal complaint, at 8:04 PM on January 4, 2023, Khouri contacted Progressive Insurance and requested a lower comprehensive deductible for her vehicle policy. The complaint stated that policy deductible was lowered from $1,500 to $500, with the change taking effect on January 9, 2023. On January 13, 2023, Khouri allegedly went online and reported to the insurer that her vehicle was involved in a deer strike accident at 12:30 AM on January 12, 2023. The complaint stated that during an interview with the insurer, Khouri stated that the accident happened after the policy deductible was changed. According to the complaint, investigators reviewed the metadata from photos of the damage that the insurer received from Khouri, and noted that the pictures were taken between 6:27 AM and 10:37 PM on January 4, 2023. When investigators asked Khouri about the date and time discrepancies, she allegedly admitted that the accident occurred on January 4, 2023. Progressive denied the claim. Khouri was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt/Theft by Deception (F3).
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On April 3, 2024, Nathaly Banderas was arrested in Philadelphia County. According to the criminal complaint, on May 18, 2022, Banderas added a 2022 Lexus to her GEICO insurance policy. The complaint stated that the policy deductible was $2,500.00, but on March 20, 2023, Benderas lowered the deductible for the Lexus to $100.00. At 12:16 PM on March 25, 2023, Banderas allegedly used GEICO’s website to report that her Lexus was damaged between March 24, 2023 and March 25, 2023, while it was parked in the driveway of her purported Lancaster County residence. According to the complaint, Banderas told the insurer that the damage occurred to the Lexus’ passenger side rear bumper and tail light. During a subsequent claim investigation, GEICO investigators located a Google Map image from August 2022, which allegedly showed the Lexus parked outside a residence in Philadelphia County, with damage similar to the damage reported in the claim. The complaint also stated that investigators searched a license plate reader database and found two captures of the license plate registered to Banderas’ Lexus while it was parked at the Philadelphia County residence on March 20, 2023 and March 24, 2023. According to the complaint, both captures appeared to show that the Lexus was damaged, and that the damage was similar to that reported by Banderas in her claim. The complaint stated that investigators determined that the damage occurred prior to the claimed date of loss. According to the complaint, the investigation also revealed that Banderas never lived at the address in Lancaster County that she allegedly had claimed to be her residence. GEICO denied the claim. Banderas was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt/Theft by Deception (F3), one count of Criminal Use of a Communication Facility (F3) and one count of Insurance Fraud (M1).
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On April 2, 2024, Kathy Lafontant was arrested in Bucks County. According to the criminal complaint, the Progressive Insurance policy covering Lafontant’s 2023 Kia Sportage expired on June 16, 2023. At 1:59 PM on June 30, Lafontant allegedly contacted Progressive to reinstate her policy. The complaint stated that Lafontant provided the insurer with a Statement of No Loss, indicating that none of the insured vehicles had been damaged during the period of no coverage. According to the complaint, Lafontant’s policy was reinstated with no lapse in coverage. On July 2, 2023, Lafontant contacted Progressive and allegedly reported that at 2:15 PM on June 30, 2023, a relative was driving the Kia in New York when it was involved in an accident. The complaint stated that Lafontant told the insurer that her relative called Lafontant immediately after the crash. According to the complaint, Progressive investigators reviewed a copy of the police accident report and noted that responders were dispatched to the crash scene on at 12:57 PM on June 30, 2023, which was prior to the policy reinstatement. Progressive denied the claim. Lanfontant was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt/Theft by Deception (F3), one count of Criminal Use of Communication Facility (F3) and one count of Insurance Fraud (M1).
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On April 2, 2024, Stasha House was arrested in Erie County. According to the criminal complaint, at 1:53 AM on September 30, 2023, House obtained a new Progressive Insurance policy for her 2014 Ford Escape. The complaint stated that on October 1, 2023, at 8:45 AM, House reported to Progressive that another vehicle struck her Ford Escape while it was parked in front of her residence. House allegedly told the insurance representative that she parked the Ford Escape at approximately 11:00 PM on September 30, 2023, and discovered the damage sometime between 2:00 AM and 4:00 AM on October 1. House allegedly advised that she had taken photographs of the vehicle just after she discovered the damage and she took more photos later that day. According to the complaint, the Progressive representative asked House to provide copies of the photos. The complaint stated that on October 11, 2023, Progressive received a screen shot that included a photograph of the damaged Ford Escape. Investigators reviewed the metadata, which allegedly revealed that the picture was taken on September 30, 2023 at 1:16 AM, shortly before House obtained coverage. Progressive denied the claim. House was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt/Theft by Deception (F3).
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Accelerated Rehabilitative Disposition (ARD)
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During the month of April, 6 additional defendants received
Accelerated Rehabilitative Disposition (ARD).
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Anti-Fraud Compliance
Reporting of Insurance Fraud to Law Enforcement Agency
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Pennsylvania Bulletin Notice 2016-04 (issued April 30, 2016) reminded insurers of their obligations to report suspected arson or insurance fraud to law enforcement agencies within the Commonwealth. The bulletin also announced a decision by the Pennsylvania Department of Insurance to allow licensees to satisfy their reporting obligation when they electronically submit reports of suspected fraud to the National Insurance Crime Bureau (NICB).
On July 6, 2017, Pennsylvania began participating in this online service which enables member companies to electronically forward reports of suspected fraud to the Pennsylvania Office of Attorney General’s Insurance Fraud Section or other appropriate law enforcement agencies at the same time the companies report suspicious claims to the NICB. NOTE: The NICB is not a law enforcement agency. Therefore, a licensee cannot satisfy the fraud reporting requirement by submitting a non-electronic (paper) referral only to the NICB.
Important: When utilizing electronic filing through NICB, users should take careful note of the provided instructions regarding the “Party” to a claim. Information entered about a Party will only be transmitted to law enforcement if users select one of two options: “This Party was subject to an SIU investigation” or “This Party was subject to an enforcement action.” Some users have missed this notation about individual Party data and consequently have submitted incomplete information to law enforcement.
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