Nationwide SIU
Contact | Investigative Services Order Form | Sitemap
Contact Us: 800-960-NSIU (6748)

Fraudsters that Investigators Hope they Encounter

October 6, 2016 by  
Filed under Blog

We always hear about fraudsters and scammers that successfully managed to pull off insurance scams, but not much attention is given to people who aren’t so successful. Eventually every scammer, no matter how clever their scheme, is brought to justice, either by law enforcement agencies or with the help of insurance investigators like us.

But these, for the lack of a better word, stupid scammers, make our jobs easier. It is not surprising that their ‘not so well thought out’ plans end up in shambles and soon the law enforcement officials are knocking on their door. Here are some examples of insurance scam fails:

1.     Mr. and Mrs. Daniels

Clayton Daniels and his wife concocted a scheme to fake the death of Mr. Daniels, because of some legal trouble that he was facing. The couple took out a life insurance policy on Mr. Daniels and proceeded with their plan. They dug up a corpse of an old lady and dressed her up in Clayton’s clothes and put her in a car before they pushed the car off a cliff.

For this plan to have any hope of success, Clayton needed to disappear, at least for a while. But, fortunately for law enforcement officials, he dyed his hair and put on a fake mustache and started living in his own house as ‘Jake’ the new boyfriend. Obviously, the case fell apart pretty quickly and both would be insurance scammers were caught.

2.     The Judge

A decorated war veteran and an admired Judge, Michael Joyce, fell on some hard times. So, when he got into an accident, he decided to fake some injuries and scam the insurance companies for over $400,000. Now because he was a respected judge, insurance companies didn’t spend much time investigating the matter. But they grew suspicious when he bought himself a plane and a motorcycle. The subsequent investigation and surveillance revealed that the good judge was openly indulging in skating and scuba diving; probably not the smartest move judge.

3.     Salad with a Side of Glass

This ragtag duo came up with an ‘appetizing’ scheme to scam insurance companies out of about $200,000 over a period of 8 years. You may think that they must have been pretty smart to bamboozle the insurance companies for so long, but wait till you hear what they did.

They went into restaurants and discreetly put glass in their food and drinks, but avoiding their restaurant bill was not their goal. They actually ingested the glass and collected the money from their various medical insurances. The process did involve repeatedly perforating their insides and vomiting actual blood, so maybe not so smart.

4.     Iron Mike

No we don’t mean Mike Tyson; we are going to reach back in time for this one and talk about Mike ‘the Iron Mike’ Malloy. He was a homeless man who lived on the streets of NYC in the 1920s. He unwittingly became a part of an insurance fraud scheme hatched by a bar owner and his three accomplices, later dubbed the ‘Murder Trust’ by the press.

They took out multiple life insurance policies on Mike Malloy and assumed that he was going to die soon, because he was homeless and in seemingly bad health. His health actually improved when the Murder Trust involved him in their scheme, so they tried, unsuccessfully, to kill him. They tried poison, car accident and forced hypothermia, but the man still wouldn’t die. They eventually killed him themselves and were soon apprehended for the crime and were sentenced to death.

In the business we are in, we always hope that we run into such scammers, because they are so easy to catch. If you require any of our insurance investigative services, then give us a call (800-960-6748). Hopefully, you are dealing with a crackpot scheme, like the ones mentioned above, if you are not, you would be glad for our services.


Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!