Fraud of the Week
Commercial Property Fraud - Idaho
Amount - $139,357.87
A man was convicted of one count of insurance fraud for making a claim for equipment that was damaged before being added to the policy. The man rented an excavator, but failed to add it to his commercial policy. While using the excavator for a construction job the machine was damaged. The man then added the excavator to the policy without mentioning the damages. Two months later, he filed a claim for the damage to the equipment, claiming the loss happened just a few days earlier. The insurer paid $100,000 to the owner of the equipment. Later, the insurer received information that the equipment may have been damaged before being added to the policy. The DOI’s fraud unit investigated and confirmed that the damage had occurred before the vehicle had been insured. The man received a six-year prison sentence which was suspended in lieu of supervised probation. The man received a $1,000 fine, court costs of $245.50, and is ordered to pay restitution of $139,357.50, which includes interest on the original payment.

