Post Date May 29, 2012 –  Believed to have already defrauded hundreds of old citizens in the state of Pennsylvania, four men were arrested for alleged involvement in financial fraud.  PA Attorney General Linda Kelly had identified the four as Bruce Howard Cherry, Ross Rabelow, Thomas Muldoon, and Robert Lerner. The four are being accused of operating fraud schemes aimed at elderly victims. The scheme goes unto deceiving the victims to spend on thousands of dollars for “home care” services including “home security” services and home insurance premiums in PA. Most of the group’s activity has been observed in the south-eastern part of Pennsylvania and some other parts with victims in the counties of Crawford, Erie and Mercer.

These con-artists will successfully defraud their old victims after they made them believed that investing through them will protect these elderly from future expensive home-related expenses.  Kelly had said the group have already defrauded more than 200 victims, and had already stolen about $700,000, through selling bogus insurance premiums and home care services. Investigators have already identified 218 victims in 41 counties and are encouraging others to come out to press charges against the apprehended suspects.  Many of these victims are widowed or living alone, and whose average age are at their 80s.

It has been known that four suspects were arrested through massive investigation work dubbed as “Operation False Comfort”.  The investigation showed that the suspects often worked as teams and would come to the houses of their elderly victims unannounced. Rabelow claims to own American Comfort Home Care Services and have Cherry as his primary salesman. They claim to provide the elderly of non-medical home care services.  On the other hand, Muldoon operates Global Services for the Home that advertises itself to have special services for senior citizens that involves safety equipments to health insurance premiums. Other than being a salesman, Cherry also identifies himself to victims as the owner of Cherry Senior Solutions that provides counselling services to the elderly on their health insurance needs in Pennsylvania.

According to Kelly, the said “businesses” of the suspects are just “names on pieces of paper” that only serve as mere materials in their presentations to the senior citizens.

-Mike 

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Post Date May 26, 2012 – Former Hackensack, New Jersey Police Chief Charles “Ken” Zisa will face prison term to maximum of 45 years after he was found guilty and convicted of official misconduct and auto insurance fraud.

A Bergen County grand jury deliberated for three days had found that the former police chief filed a falsified NJ auto insurance report, and involved himself to two investigations that involved his former girlfriend.  However, Zisa’s counsel plans to appeal his case. Zisa had become prominent in Hackensack, leading its police force for 15 years, and prior to that, being a state assemblyman for 8 years.  Not only the former police chief but as well as his family held powerful appointed and elected positions for decades in the said town.

In 2010, Zisa faced suspension without pay after he was accused of official misconduct and fraud on car insurance in NJ. He was said to have removed his girlfriend, Kathleen Tiernan, from the scene of accident who was believed to be intoxicated that time. The accident happened in Febraury 4, 2008. Authorities accused Zisa of filing falsified information to have an NJ auto insurance claim. Along with Zisa, other police officers were also suspended, namely: Captain Danilo Garcia and police officer Thomas Aletta. The three police officers had a 13-count indictment that composed of tampering with evidence, witness tampering, official misconduct, conspiracy to commit official misconduct, and auto insurance fraud prepared by NJ First Assistant Prosecutor William Galda.

It was learned that Tiernan was driving Zisa’s vehicle when it hit a utility pole. Authorities said that Zisa then arrived to the scene and removed his girlfriend which prevented them from conducting thorough accident-related investigation.

In addition, the police chief was also accused of cover-up on an investigation pertaining to a 2004 assault and robbery that involved his girlfriend’s sons. However, Zisa’s attorney told reporters that the said case is just based on statements from police officers who will gain financially from his client’s conviction. The attorney said that this are all lies and was just brought up as a political favor to the former police chief’s enemies.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Post Date May 23, 2012 – US President Barack Obama’s plan to overhaul the country’s health care system is having a hard time in New Jersey, this after the state’s governor, Chris Christie vetoed the legislation that will setup a health insurance exchange.

The Associated Press reported that the Republican governor believes that the state’s legislators should not rush in enacting such bill that can create additional burden on the taxpayers. Christie called his decision as a safe move for the Supreme Court had not yet decided with finality on the constitutionality of the Affordable Care Act. However, the governor declared that if the court will uphold Obama’s overhaul, he will fully oversee the state’s compliance but in a cost effective and responsible manner. The Supreme Court is expected to have its decision on the said bill on June.

After the governor vetoed the legislation, he stated that a hastily created health insurance exchange will impose unwarranted obligations on the part of the state’s taxpayers. But even with this position, the governor’s administration is still working on the preparations if ever the proposed law will push through.  The nixed NJ health insurance bill would have created an online marketplace where people can purchase federally subsidized insurance in New Jersey that would start in 2014.

But Christie’s move on the said legislation had been viewed differently by some legislators. Assemblyman Herb Conaway, a medical doctor and a Democrat, and one of the sponsors of the bill Christie vetoed upon, had said that the governor did not thought on the well-being of the state but bowed down to national political pressures. Another Democrat, Representative Frank Pallone Jr., who had worked in the creation of the health care law viewed Christie’s move as unnecessary delay on New Jersey’s part of implementation.

The New Jersey governor is one most celebrated Republicans today and was even courted to be a presidential candidate, but had declared not to seek for their party’s nomination. The governor had given his support to Mitt Romney, who had earlier confirmed that if elected, he will repeal Obama’s health care law. Christie is still being considered as a potential vice presidential candidate for Romney.  Christie is now the second state governor that had vetoed a state legislation for the creation of such exchange. The first is New Mexico Governor Susana Martinez, who vetoed for the bill that aims to create an insurance exchange in the said state due to supposed cost concerns and the legal battles concerning the federal law.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Post Date May 15, 2012 An Insurance Institute report shows an average increase in Ohio car insurance rates  rose by over 5% from 2009 to 2011.  The auto insurance association, which represents home and auto insurance providers in the Buckeye state, show an insured drivers paid about $650.00 last year.  This is a sizable increase in auto insurance rates. Ohio auto insurance customers only paid about $600 in 2009.

These statistics are based on information from Ohio car insurance rate studies from the Ohio Insurance Institute.  The Ohio Institute compared data from the National Association of Insurance Commissioners and the Bureau of Labor Statistics. They also made use of  data from ten of the states largest auto insurance providers. Data from the Ohio Insurance Department shows auto insurance rates increased slightly between 2008 and 2010 among the 10 largest car insurance companies. Grange Mutual Insurance Company had the largest increase while Ohio Casualty Group had the lowest.  The top ten auto insurance companies support over 70% of Ohio’s Car and truck insurance market. Insurance professionals, including myself, feel the market will continue to harden and rates will go up.

Losses in profitability have continued to be experienced by insurance carriers in the last 24 months. The Insurance Information Institute reported that natural disasters have made up most of the claims activity. This amounts to $35 billion in 2011. This claims activity have led to massive losses for many homeowners companies which also market auto insurance coverage.  Sadly, these severe losses will force Ohio insurance policyholders to pay higher rates in 2012.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Friday’s Post May 4, 2012 – In a bid to recuperate over a million dollars, Allstate Auto Insurance issued a lawsuit against sixteen people and healthcare firms it alleges filed auto insurance fraud claims for Personal Injury Payments. The suit claims that sixteen people whom lacked the proper medical expertise, and who filed the fraud paperwork – ran these companies unlawfully. The plot to file false claims involved a chiropractor, another individual, and three healthcare companies that had unlawfully filed articles of incorporation in New York State. The chiropractor was listed as the owner for the three companies. These companies, under his leadership, filled false auto insurance medical claims with the car insurance carrier. The companies, according to the allegations of the car insurance carrier, were owned by a group of people with no medical training. Under New York State law, only licensed individuals are permitted to own these healthcare companies. The Car Insurance Companies lawsuit alleges that a total of eight individuals, working for these companies and colluding in the plot to defraud the Car Insurance Carrier, submitted fraud claims for third party, independent services.

There is also a conflict of interest component to this case.  The referrals made to each of the healthcare companies, were filed by individuals who had a financial stake in the company. Two of the Health Care companies were listed as being incorporated under the ownership of a medical professional, but were in reality being run by a team of two people with no formal medical credentials. The team that ran this company supposedly used two Health Care Management firms in order to facilitate the scheme. The lawsuit  alleges charges such as other illegal referral procedures, and receiving compensation through fraud.  Allstate Car Insurance has been actively pursuing fraud claims cases in New York,  New Jersey, Pennsylvania and Ohio and elsewhere. The car insurance company has filed three-dozen lawsuits in those states alone.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602