An honest fraudster, a dedicated paper carrier, and a persistent thief were among the fraudsters who attempted to rip off Manitoba Public Insurance and its ratepayers this year, with less than stellar results. Their misguided efforts earned them a spot on the public auto insurer's 2008 list of Top Five Frauds, a dubious honor bestowed annually to heighten awareness that committing fraud is not a smart decision.

This year thousands of suspicious claims were meticulously reviewed by the company's Special Investigations Unit (SIU) to save honest motorists money. By uncovering these and other fraud attempts, the unit has recovered undeserved benefits and denied fraudulent claims totaling nearly $40 million over the last three years.

One Winnipeg resident found out the hard way that honesty -- albeit criminal in intent -- doesn't always pay. The man had opened an auto theft claim with Manitoba Public Insurance. He had filed a similar theft claim three years earlier, so an investigator interviewed him for further details. When asked how to explain the similarities of both thefts, the man blurted out that the first claim was, in fact, bogus. The vehicle's engine was blown and he had arranged for it to be stolen, and then burned. Although he insisted that this new claim was legit, the investigator was unconvinced. The man later pled guilty to fraud and received a $1,000 fine.

"There is no statute of limitations with respect to fraud charges and convictions," explained Tim Arnason, Director of the SIU. "While this case was somewhat unusual in terms of length of years, it ultimately proves that fraudsters may eventually be caught and dealt with by [the] justice system."

Another Winnipeg man, a dedicated paper carrier, joined the ranks of those who tried -- unsuccessfully -- to defraud the public insurer last year. Perhaps he was a little too dedicated. As the result of a car collision, the man claimed his injuries prevented him from carrying out his job as a newspaper distributor. Manitoba began paying the man income replacement. However, the man's dedication to his profession proved to be quite strong, and he started working again while still collecting money from Manitoba.

One of the daily stops on the man's route was Manitoba's downtown head office. Unbeknownst to him, surveillance cameras captured him going about his business. He pled guilty to the charge of fraud and was issued a fine and ordered restitution to the insurer.

Among other memorable cases was that of the "Hattrick Fraudster," an ambitious criminal who tried to pull three separate frauds on the insurer. He was originally injured in an automobile crash, which, by his account, had rendered him unable to carry out his employment as a snow-removal operator. He began receiving income replacement from Manitoba. As time went on, the man opened two more theft claims with the public auto insurer: one for a stolen truck cap, and one for a snowmobile trailer.

An anonymous call to the TIPS Line persuaded the insurer to investigate the man's claims. Investigators were able to confirm that he had returned to work while still collecting payments, and that he had never owned a truck cap or snowmobile trailer. In a similar vein as the aforementioned fraudsters, the "Hattrick Fraudster" pled guilty to two counts of fraud and received not only a fine but also a nine-month conditional jail sentence. In addition, the court ordered him to pay restitution of $17,000 to Manitoba Public Insurance.

Interested in more fraud news and in-depth articles? Head over to Claims' fraud channel for more information.

Special Reports /

Fraud of the Week: Assemblage of Dunces

Related Stories

Recommended For You