All Consumers Pay the Price of Insurance Fraud

Almost a million dollars’ worth of insurance claims – all of them a lie. Here's one outrageous case of insurance fraud – a crime that costs all of us.

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

He is Michael LeDuc. He submitted $900,000 worth of claims for disability benefits.

There was one problem.

“As it turned out he had both of his arms,” explained Thieme

The insurance companies were “suspicious” of LeDuc’s claims and asked postal inspectors 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,” said Thieme

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,” Thieme revealed.

LeDuc 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,” Thieme explained.

LeDuc pleaded guilty and was sentenced to more than 4 years in prison. He was ordered to pay more than $70,000 in restitution.

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