Insurance Fraud Claim Charged Under RICO

An unusual application of the Racketeer Influenced and Corrupt Organizations Act (RICO) will go forward following a Manhattan judge's denial of an insurance company's motion to dismiss. The Tennessee-based insurance giant UnumProvident Corp., which has already paid $23 million in settlement agreements with individual states over the past year, has been accused of developing an elaborate network of conspirators to avoid paying claims. To establish a claim under RICO, which has both civil and criminal components, a plaintiff must show that a defendant violated at least two of 35 enumerated crimes within a 10-year period. The crimes--such as mail fraud, wire fraud, sports bribery and obstruction of justice--are generally associated with organized crime, and carry harsh penalties, including triple damages and prison sentences of up to 20 years. The case is Weisel v. Provident Life, 600759/05. More from the New York Law Journal. . . [Mark Godsey]