Frank H. Murkowski, Governor
Edgar Blatchford Tina Dickinson
Commissioner Communications Specialist
PO Box 110800 907-269-4568
Juneau, Alaska 99811-0800 Fax: 907-269-8125
NEWS RELEASE Tina_dickinson@commerce.state.ak.us
www.commerce.state.ak.us
FOR IMMEDIATE RELEASE: December 10, 2004 No. 04-039
Alaska’s Division of Insurance Uncovers Fraud that Leads to Conviction
Wrangell man indicted of insurance fraud after submitting false claim to automobile insurer
(Anchorage) – Earlier this year, a grand jury empanelled in Juneau issued a True Bill
charging a 35-year old Wrangell man with one felony count of Fraudulent or Criminal
Insurance Act AS 21.36.360(b)(2), and one misdemeanor count of Immediate Notice of
Accident AS 28.35.080(a). The indictment was based upon an investigation by Alaska’s
Division of Insurance and the Wrangell Police Department.
On September 28, 2004, the State of Alaska agreed to a plea bargain with the offender
concerning the charges handed down by the grand jury. The offender pled guilty to a
reduced misdemeanor charge of attempted theft in the second degree and the second
count was dismissed. He was then sentenced in the Wrangell’s District Court, where he
received a 12-month sentence, a fine of $5,000, and a two-year probation.
“It is cases like this one that cause the average citizen higher premiums,” said Division
of Insurance Director Linda Hall. “We intend to investigate all potential illegal activities
because of the increase in insurance fraud throughout the nation.”
The Division of Insurance’s investigative report documented that in February 2004, the
Division received a report from Progressive Insurance Company concerning a potential
fraudulent automobile insurance claim. The insurance companies are statutorily
mandated to report suspected fraudulent insurance claims to the Division of Insurance.
The offender reported to Progressive Insurance Company that he was involved in an
automobile accident with his 2000 Ford Mustang on December 25, 2003 in Wrangell,
Alaska. It was estimated that vehicle suffered $3,070.16 in damage.
-more-
P.O. Box 110803, Juneau, Alaska 99811-0803
Telephone: (907) 465-2505 Fax: (907) 465-2563 Text Telephone: (907) 465-5437
Website: http://www.commerce.state.ak.us/
Alaska’s Division of Insurance Uncovers Fraud that Leads to Conviction Page 2
The investigation revealed that the automobile was added to the offender’s insurance policy on
December 23, 2003. Wrangell Police conducted an investigation that documented that the
offender was actually involved in the accident on December 21, 2003 - two days before he
added the vehicle to his insurance policy.
The investigation also uncovered that the vehicle’s transfer of title was signed on June
30, 2003, yet Progressive’s investigation claimed that the offender purchased the
vehicle on August 28, 2003. According to Progressive’s policy, a vehicle must be added
within 30 days of purchase to maintain coverage, but the offender didn’t add it until
December 23, 2003.
Because of the fraudulent representations made by the offender, Progressive Insurance
Company denied the claim. In accordance with the insurance laws, a person commits a
fraudulent or criminal insurance act if they present to an insurer a written or oral statement in
support of a claim for payment or other benefit under an insurance policy, knowing that the
statement contains false, incomplete, or misleading information concerning a matter material to
the claim. A person who assists or conspires with another to commit the crime can also be
charged. A fraudulent claim in the amount of $500 or more is a felony offense.
“It is satisfying to see the Division’s efforts result in a conviction and sentence which
serves as a clear message to the public regarding the seriousness of insurance fraud,”
said Insurance Investigator Schuyler Cox. “Protection of our consumers is paramount.”
The Division of Insurance is committed to providing consumers fair but vigilant
regulation while promoting a competitive environment for insurers. The Department
regulates and licenses insurance companies, agents and brokers, and insurance
agencies and monitors the financial solvency of the insurance industry in Alaska.
For more information contact Investigator Schulyer Cox at 269-7918.
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