CrimProf Blog

Editor: Kevin Cole
Univ. of San Diego School of Law

Tuesday, February 28, 2006

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]

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What is it with all these insurance fraud cases being filed under RICO?

As an across-the-board application this makes about as much sense as 75% of the class action suits.

--Jack Payne

Posted by: Jack Payne | Jul 10, 2007 10:43:23 PM

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