Outrageous case of insurance fraud

Inspectors warn schemes like this cost all of us


It added up to be almost a million dollars in insurance claims and all of them were a lie.  It's being called one outrageous case of insurance fraud and it's a crime that costs us all.

"He made claims with three large insurance companies that he had an accident where he lost his left arm in a wood chipper," explained US Postal Inspector Derik Thieme.

He is Michael le Duc who inspectors say submitted $900,000 worth of claims for disability benefits.  But, there was one problem.

"As it turned out he had both of his arms," said Thieme.

The insurance companies were "suspicious" of le Duc's claims and asked postal inpsectors to look into the case.

"In investigating the matter, what we found was that he had been to the hospital and had actually been seen by the doctor for another matter," Thieme explained.

He did not lose his arm.

"He took those hospital forms, altered the forms, and mailed them to the insurance company to support his claim," said Thieme.

Le Duc received $12,000 from fraudulent submissions. The insurance companies aren't the only ones losing money.  All consumers pay the price.

"The insurance companies need to recoup any losses they may have or expenses and that's only going to be passed along to consumers so it really affects the general public in that it causes rate increases and things of that nature," said Thieme.

Le Duc pleaded guilty and was sentenced to more than four years in prison. He was ordered to pay more than $70,000 in restitution.