The efforts of the Fraud Division of the Louisiana Department of Insurance, founded five years ago, have often led it to fraudulent operations stretching beyond international boundaries. The Division is now using e-mail, fraud claim reports, and international networking to crack down on fraudulent activities.
E-Mail AddressThe Department has recently installed a fraud e-mail address.
"Through the Louisiana Department’s e-mail address and Internet homepage, we are expanding our reach through a global network and inviting others to join us in tracking down these career perpetrators of insurance fraud," said Louisiana Insurance Commissioner Jim Brown.
"Tips received through the e-mail address will be investigated by the Louisiana Fraud Division and referred to other law enforcement and regulatory agencies in accordance with applicable legal guidelines," Brown said.
There are two new ways to turn in a fraud tip to our Department. The first is to access our homepage, go to our e-mail center on the fraud information page, and then write in your information.
The second way is to use your own e-mail account, type in our fraud e-mail address, and submit your letter. The Department's fraud e-mail address is tbeach@ldi.state.la.us.
"Many times it is an enterprising law enforcement official or insurance company investigator who first spots these insurance criminals as repeat offenders when they start working a scam in a different area," Brown said.
Brown said he is convinced a number of people in Louisiana, other states and beyond will respond to the 24-hour convenience of e-mailing a confidential tip to the Department when they might not take the time to make a long distance call or write a letter during their hectic work day.
Suspected Fraudulent Claim ReportIt is now easier for everyone to participate in reporting fraud.
State law requires insurance companies to report suspected fraudulent insurance activity, according to La. R.S. 22:1245.
The way to turn in this information is to fill out a Suspected Fraudulent Claim reporting form. This claim report will be held confidential and must be notarized to fulfill legal obligations.
The form can also be downloaded from the Department's homepage, or it can be obtained by writing or calling the Department of Insurance toll-free number, 1-800-259-5300 or 5301, statewide, or 504-342-4956.
Individuals can report fraud by filling out this form or simply writing a letter to the Department.
"Every shred of information you have is important to us," Brown said.
"Letters or calls that come into the Fraud Division often lead to indictments. We always encourage people to turn in information they have to us, because every little bit helps," said Michell Bond, Assistant Director of Fraud.
International NetworkingBrown has pledged to work closely with other states and countries in an effort to protect consumers from fraud.
Unscrupulous insurance operatives victimize people in first one geographic area and then another.
Most crooked agents rob people of their hard-earned insurance dollars in exchange for bogus insurance policies, and the only penalty many of them get is a slap on the wrist and orders to stop practicing in that state.
"The big losers in this scenario are the unsuspecting citizens these corrupt insurance agents victimize when they move from state to state and from country to country," Brown said.
In one Louisiana case, an unlicensed operator took his operation offshore and under water. Using a submarine touring service as a cover, Gerald Thornton defrauded unsuspecting citizens in Louisiana, Mississippi and Texas of more than $1.7 million.
From April 1992 to October 1993 he ran his insurance scam, moving between the U.S. Mainland and the British-owned Turks and Caicos Islands on his yellow submarine. He had established an island residence, but never received an insurance license from the Turks and Caicos or the three states where he operated.
Brown cited the case of the yellow submarine as an example of a fraud being perpetrated in an area where it was least expected.
Through the maximum use of current computer technology, such operations may be detected and shut down much more quickly, minimizing the number of victims.
Insurance fraud rings can be illegal or unauthorized companies or agents selling bogus insurance or individuals who often band together to defraud insurance companies by filing bogus claims.
"I challenge all state, national, and international insurance regulators and law enforcement officers to join us in pooling information which will lead to the detection, apprehension, and conviction of these people when they first attempt to establish their latest insurance scam," Brown said.