An Overview of Fraud and What Sort of Insurance Fraud Penalty You May Face
Insurance fraud is no light matter in the United States. Though folks often refer to such crimes as “white-collar crimes,” that is no indication that the insurance fraud penalty is not severe. If you believe that you are being investigated for fraud or have been charged with insurance fraud, you will need an experienced and aggressive attorney to help defend you.
Our attorneys at Murphy & Rudolf, LLP have extensive experience defending individuals and companies facing charges for white-collar crimes. Our Worcester-based criminal defense attorneys can provide thorough representation. Reach out today to schedule a free consultation to discuss the details of your case: (508) 570-3037.
What Qualifies as Insurance Fraud?
Insurance fraud refers to the illegal act of a person or an entity using false information to place an insurance claim in order to seek compensation for damages, injuries, or losses. While insurance fraud also applies to insurance companies defrauding their clients, this article will focus specifically on insurance fraud committed by individuals or entities and what the insurance fraud penalty can be if found guilty.
Is All Insurance Fraud the Same?
Short answer? No. Insurance fraud, though all deemed to be a grave illegal act, can often be referred to as either a “soft” fraud or “hard” fraud. And while the title of “soft” fraud may indicate that the crime is somehow insignificant, being found guilty of soft fraud can still bring about a significant insurance fraud penalty.
Hard fraud refers to when the accident or incident of the insurance claim in question was faked or intentional. A well-known example of this often alluded to in movies is arson, wherein someone sets fire to an establishment in order to claim the insurance money.
Soft fraud refers to the lies one may make in the insurance claim in order to enhance the insurance benefits they then receive.
Hard and soft fraud can happen within many different contexts. Insurance fraud can happen with healthcare, automotive insurance, life insurance, and with property. Some cases of insurance fraud may be classified as either a felony or a misdemeanor.
What Will the Insurance Fraud Penalty Be?
Insurance fraud penalties will vary greatly depending on the context of the particular case. It is impossible to predict the penalty without knowing the details. However our team of attorneys at Murphy & Rudolf, LLP will be able to assess your case and help you understand what possible penalties you may be facing regarding your specific situation.
However, generally speaking, according to Massachusetts law, MGL Chapter 266, 111A et seq., if found guilty of a felony in insurance fraud, you may face “up to 5 (five) years in prison or from 6 months to 2 ½ years in jail, or a fine of $500-$10,000, or both.” You may also face civil insurance fraud penalties like fines, probation, community service (especially with soft fraud), or other sanctions if you are an entity, like a business.
Murphy and Rudolf, Llp Can Help You Understand Potential Insurance Fraud Penalties and Give You the Aggressive Defense You Deserve
Our attorneys have defended individuals and corporations in state cases prosecuted by the State Attorney General’s Office, and we also have experience defending clients facing federal prosecutions by the United States Attorney’s Office. If an indictment is unavoidable, we can defend you in court.
Contact us today for a free consultation with our highly experienced and aggressive criminal defense attorneys: (508) 570-3037.