Insurance Fraud: Scheme Started With Friends, Family First

Who do you call? Big brother. But his real name is Frenchitt Collins.

For years Collins worked as a legitimate insurance adjustor trying to attract clients with ads.

"He got an institutional understanding of how the chiropractic business worked," said U.S. Postal Inspector, Jan Bodon. "Once he felt knowledgeable enough he filed fraudulent claims with numerous insurance companies."

Collins set up a bogus chiropractors' office using P.O. boxes and turned to friends and family to get the scheme started.

"He would go ahead and offer them $100 or $200 in order to be able to use their identifiers," Boden said. "Once he had that information he would go ahead and complete the medical forms necessary and send them to the insurance companies."

Insurance companies would then send checks—lots of them.

Boden: "Those P.O. boxes were rented by him (Collins), his wife, his brothers, or his girlfriends."

The goal of these ads was to lure in more victims.

"That added legitimacy to his scheme. Victims went and actually dialed his number, provided the identifiers and he went ahead and submitted the fraudulent claims,"said Boden.

Federal officials say insurance fraud is a $30 billion business in the U.S.

"It is very lucrative for the criminal to perpetrate the crime because it's low risk and it's high reward and they know that," said Fred Lohmann with the National Insurance Crime Bureau.

Experts say this abuse is costing all of us.

Lohmann said, "The fact that this crime is occurring and is so prevalent in the us – it taxes resources federal, state, and local that have to actually go in and investigate the crimes."


To find out more about Facebook commenting please read the
Conversation Guidelines and FAQs

Leave a Comment