A Million-Dollar Crime You're Paying For

MILWAUKEE, WI -- One man made almost a million dollars' worth of insurance claims. All of them a lie.

U.S. Postal inspectors found one outrageous case of insurance fraud – that costs all of us.Postal inspector Derik Thieme said, "He made claims with three large insurance companies that he had an accident where he lost his left arm in a wood chipper."

'He' is Michael Leduc. He submitted $900,000 worth of claims for disability benefits. There was one problem. He had both of his arms. The insurance companies became "suspicious" of Leduc's claims and asked postal inspectors to look into the case. They found he had been to the hospital and had actually been seen by the doctor for another matter. He did not lose his arm. But he did take advantage of the situation.

Thieme said, "He took those hospital forms, altered the forms, and mailed them to the insurance company to support his claim."

Leduc received $12,000 from fraudulent submissions. But the insurance companies aren't the only ones losing money. All consumers pay the price.

Thieme said, "The insurance companies need to recoup any losses they may have or expenses and that's only going to be passed along to consumers so it really affects the general public in that it causes rate increases and things of that nature."

Leduc pleaded guilty. A judge sentenced him to more than 4 years in prison. He also had to pay more than $70,000 in restitution.


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