Fictionalized True Insurance Fraud
A Story of Life Insurance Fraud
This is a fictionalized True Crime Story of Insurance Fraud to explain
why Insurance Fraud is a “Heads I Win, Tails You Lose” situation for
Insurers. The story is intended to help you to Understand How Insurance
Fraud in America is Costing Everyone who Buys Insurance Thousands of
Dollars Every year and Why Insurance Fraud is Safer and More Profitable
for the Perpetrators than any Other Crime.
The Hungarian owned and operated a board and care facility for the aging
in Carson City, Nevada. He brought his younger brother over from
Hungary in 1975 to help him in the business. It was only a twenty-bed
facility and with little help, the two could manage the entire business.
His younger brother maintained the facility, cooked the meals for the
residents, doubled as a nurse and ran the business. The doctor acted
like royalty.
The younger brother suffered from severe hypertension.
After the doctor had paid the first monthly premium on the life
insurance policy, he explained to his brother that the hypertension
drugs prescribed for him were dangerous.
Within two weeks of taking his brother’s drugs, the younger brother was
found by his wife apparently dead, on his kitchen floor. They put the
brother in an ambulance and began racing toward the emergency hospital
with red lights and siren. The doctor followed and almost sideswiped the
ambulance twice. They called for police help on their radio.
They could not revive the younger brother. They pronounced him dead one
hour after arrival at the hospital. The doctor convinced the wife there
should be no autopsy. His brother, her husband, had a severe heart
condition that was well documented. He explained that there should be no
reason to cut his body to satisfy a local ordinance.
The doctor convinced the brother’s family physician to sign the death
certificate showing the cause of death as a heart attack. The family
physician did so without evidence of such a heart attack. The family
physician had not even seen the deceased within six months of his death.
The family physician clearly violated the law. He thought the death
certificate would help the family who appeared adamantly against the
invasive procedures of an autopsy.
The widow was not an intelligent woman. She had limited education in her
country of birth, Hungary. She could barely read or write the English
language and spoke it with a thick accent. She relied totally on her
brother-in-law. He handled the disposition of her husband’s estate. She
signed whatever papers he put before her.
One paper he put in front of her was a claim form making claim on the
life insurance policy. The claim form did not use the sister-in-law’s
address but, rather, a P.O. box held in secret by the doctor. The
insurance company, presented with an appropriate claim form signed by
the widow and what appeared to be a proper death certificate,
immediately issued its check for $100,000 plus interest, made payable to
the widow, the sole beneficiary named in the policy.
The doctor received the check. He signed the widow’s name to it and
deposited the money in his account. He used the money to pay the debts
of the board and care facility and to buy a new home for himself on five
acres of desert property outside Carson City. She met a blackjack
dealer at a casino and married him so she would have some means of
support.
The doctor lived in luxury for a year off the proceeds and then began
planning his next insurance fraud. He has no other brothers to kill, so
he decided to obtain life insurance on the residents of the board and
care facility none of whom had a long life expediency.
(c) 2023 Barry Zalma & ClaimSchool, Inc.