Auto insurance fraud convictions up sharply last year
Advertiser Staff
The number of people convicted of motor vehicle insurance fraud increased sharply in 2008 for the second year in a row, according to the Insurance Fraud Investigation Unit of the State Department of Commerce and Consumer Affairs.
Convictions rose to 55 in 2008 from 34 the year before, an increase of 62 percent. That followed an 89 percent increase in 2007.
Convictions for felony charges can result in a prison sentence of up to 10 years and/or a fine of $25,000.
One of those convicted last year was Beverly Medeiros, an educational assistant on the Big Island who was investigated for five separate cases. Medeiros alleged that she was unable to work due to injuries from an auto accident. Medeiros created fictitious employers and utilized a post office box address to intercept all correspondence, according to DCCA. Medeiros defrauded three different insurance companies. In January 2008, Medeiros was sentenced to 30 days in jail. She also was ordered to pay restitution totaling more than $103,000 along with court fees of $1,380.
Insurance Fraud is estimated to cost each household in Hawaii an additional $200 to $300 in increased premiums every year. To report insurance fraud call the Insurance Fraud Hotline at 587-7416.