Fraud of the Week

June 22, 2015

Additional Living Expense—Montana

AMOUNT: $213,000

 

A former beauty queen was sentenced to five years' probation and the payment of $213,000 to her insurance company for restitution. The conviction was for seven counts of mail fraud and a felony count of conspiracy; the sentencing was for five years' probation for each count to run concurrently. The historic home she lived in sustained a fire, making it uninhabitable. The insured claimed she was living in a comparable dwelling during the repairs, which was 7,000 square feet with five bedrooms, two baths, and a swimming pool. The carrier paid the cost of additional living expenses for this dwelling. However, the insured was actually living in an 860 square foot cabin with two bedrooms, no indoor plumbing, and no pool.