NU Online News Service, Aug. 20, 1:03 p.m. EDT

A Pennsylvania man's attempt to turn some dilapidated modular townhomes into nearly $1.4 million was thwarted by authorities, said state Attorney General Tom Corbett.

Kevin Paul Kollar, 48, of Pottstown, Pa. was arrested by the attorney general's Insurance Fraud Section and charged with one count of insurance fraud, one count of attempted theft by deception and one count of perjury for submitting a false $1.39 million insurance claim for damage to modular townhomes he stored in an open lot near his home, Mr. Corbett said.

Mr. Kollar claimed the modular pieces were in new condition and were protected by wrapping when they were extensively damaged by wind and water in a March 2008 storm.

However, Kollar's claim that the modular sections were in good condition "were directly contradicted by observations and photographs taken by an employee of the business that sold the home to Kollar," according to the attorney general's office.

"These schemes increase costs for insurance companies and take money from the pockets of honest policyholders in the form of higher premiums," Mr. Corbett said.

Fraud accounts for 10 percent of the property & casualty insurance industry's incurred losses and loss adjustment expenses, or about $30 billion a year, according to the Insurance Information Institute.

Special Reports /

Pa. Man Arrested for Filing $1.4M False Claim

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