Hundreds gathered in Palm Desert, Calif. this week for the International Association of Special Investigation Units (IASIU) 27th Annual Seminar & Expo to discuss the most vexing insurance fraud schemes, as well as cutting-edge technologies and strategies to combat them.

On Monday following presentations by esteemed industry icons such as NICB President and CEO Joseph H. Wehrle, Jr. and CAIF Executive Director Dennis Jay, IASIU kept the momentum going with a special ceremony honoring four individuals not only for their leadership and tenacity in unraveling some of the globe's most pernicious scams but also for their collective contributions to the industry. The organization presented the following 2012 awards:

Analyst of the Year: Mary “Bunny” Durden, Geico

Mary Durden was honored as Analyst of the Year for her work on a staged accident investigation in Georgia. She assisted the National Insurance Crime Bureau (NICB) by providing information on an individual who used fictitious names to obtain insurance policies and make claims not only from her insurance company, but from multiple insurance carriers. Many of the claims involved the same vehicle with the same damages resulting in payments being made to the fictitious named individuals. Through Durden's analysis, more than 40 claims were identified and provided to the NICB along with the summary of the claim information, photographs and estimates of the damage.

As a result of Durden's efforts, the U.S. Secret Service investigated for possible federal mail fraud, wire fraud or bank fraud violations. That investigation led the individual to confess to submitting fraudulent insurance claims.

Investigator of the Year: John Boatwright, Travelers

John Boatwright of Travelers Insurance received the 2012 Investigator of the Year Award for his work that exposed a California-based durable medical equipment (DME) company that was improperly increasing payments for medical equipment. His investigation showed the company was billing for expensive pieces of DME while delivering sub-standard models; providing altered source documents to substantiate the cost of certain pieces of equipment; utilizing the state's lien process to further their enterprise; and altering medical bills to test and deceive payment systems

As a result of the investigation, the insurer sought litigation through the California False Claims Act in late 2011 and the case was settled this year.

Public Service Award: Wendy Derzaph, L.A. County D.A.

Wendy Derzaph of the Los Angeles County District Attorney's Office received the 2012 Public Service Award for her efforts in prosecuting a large, sophisticated, international insurance fraud criminal enterprise being run out of Dubai in the United Arab Emirates.

The crime ring consisted of 11 primary suspects from around the globe who stole thousands of Americans' identities and used the stolen identities to submit fraudulent workers' compensation medical service bills to 70 different insurance companies. Through the scheme, this group illegally obtained millions of dollars in fraudulent insurance payments, and then laundered the proceeds through wire transfers to Dubai, Armenia, or the Philippines.

A total of 55 felony counts were filed against each of the 11 defendants alleging insurance fraud, grand theft, identity theft, money laundering, and conspiracy. Derzaph concluded the case with six of the defendants entering guilty pleas in court and international arrest warrants being issued for the other five defendants. The court also ordered $4.8 million in restitution.

Outstanding Service Award: Walter Swett, Nationwide

Walter Swett, of Nationwide Insurance and the Georgia IASIU chapter, was honored for more than a decade of service to the national and local organizations. In addition to serving on the National Board of Directors, under his leadership, the Georgia chapter grew its regular and associate membership numbers to a steady annual roster of around 100.

Swett also paved the way for educating local and state law enforcement agencies about all facets of insurance fraud – creating an entire training program for law enforcement agencies on various aspects of insurance fraud investigation and prosecution. Recently, he led the chapter's public anti-fraud education campaign – utilizing billboards throughout the state to urge the public to call the NICB's 1-800-TEL-NICB hotline to report insurance fraud.

Click here to view the 2011 IASIU award recipients and their respective contributions.

Special Reports /

IASIU Honors Four Fraud Fighters At Annual Conference

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