Fraud of the Week – When the Classic Cars Catch Fire
Personal Auto Fraud – Idaho
Amount - $200,000
Two men pleaded guilty to counts of insurance fraud in a case that involved three classic vehicles destroyed by fire. The vehicles were destroyed in a shop owned by one of the men. At the time of the fire, none of the vehicles were insured due to non-payment of premium months earlier. While the fire was burning the man called his agent to get the policies reinstated. The policies couldn't be reinstated, but the agent issued new policies for the man with an effective date after the fire had been reported. A month later, the insured filed a claim for damage to all three vehicles with a date of loss a day and a half after the actual fire had occurred.
The agent received a sentence of one year fixed (suspended) and one year indeterminate, with two years of supervised probation, 250 hours of community service, and court fines and restitution. His license to sell insurance has been revoked by the insurance department.
The insured received a sentence of two years fixed (suspended) and one year indeterminate, with three years of supervised probation, restitution, and the maximum fine of $15,000.

