Premium Due to Pip Fraud

U.S. NewswireMay 16, 2011

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Summary


TAMPA, Fla., May 16, 2011 /PRNewswire/ -- Hillsborough County Sheriff's Office issued more than 50 arrest warrants stemming from its five-month investigation, "Operation No Pain No Gain." The probe, aided by Direct General Insurance Company, arrested clinic owners and managers, as well as general employees from four Tampa medical clinics. Criminal charges range from Conspiracy to Commit Racketeering Influenced Corrupt Organization (RICO), a first-degree felony, to Filing False and Fraudulent Insurance Claims.

The recent busts come less than two weeks after the conclusion of 2011 Florida Legislative Session. During the session, Personal Injury Protection (PIP) reform proposals (HB1411 & SB1930) were supported by law enforcement, state officials, insurance industry and consumer advocate groups. The proposed legislation would have empowered law enforcement agencies, among others, to fight this growing epidemic of felony, staged accidents and auto insurance fraud in Florida. However, the proposed PIP reform legislation failed to gain the votes needed in both the House and Senate, abruptly derailing fraud reform of any kind.

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Premium Due to Pip Fraud

"Florida ranks number one in the nation for staged accidents and auto insurance fraud. Direct General has taken a 'zero tolera...

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