Fraud of the Week
Commercial Property Fraud – California
Amount – $37,570
A motel owner filed a claim with his insurer for damage caused when a motel guest broke the fire protection system which caused the sprinklers to turn on, damaging several rooms and hallways. The insured submitted invoices and estimates to his insurer totaling $50,325. The insurer paid $37,570 but was suspicious about the claim. The department of insurance began an investigation and upon contacting vendors regarding the repairs, discovered the invoices and estimates were either fraudulent or had been altered. The insured has been sentenced to two years felony probation, six months of jail time served through an electronic monitoring program, payment of $25,500 in fines, and making a $50,000 donation to a homeless center.

