Insurance Scams Involving Paralegals

Yes, this article, Paralegals make mark in insurance scams of the year, comes from Canada & fraudulent activity happens in all fields, but it’s still a big disappointment to see news like this:

One elaborate scheme saw a paralegal recruit people to file claims for phantom injuries sustained in supposed car crashes, while another paralegal tricked a client into allowing him to negotiate an insurance claim and then forged the client’s signature to cash the resulting cheque. A third paralegal was the driving force behind a staged accident ring.

"The paralegals were a major problem," says [Insurance Bureau spokesman Rick] Dubin, who noted that many crash victims were drawn in by cheap legal advice.

"We had at least, probably, maybe a dozen, where they did not give funds to their clients or cheated them out of a substantial amount of funds."

In one case that didn’t make the list, a paralegal negotiated a settlement but told the client it was less than it actually was, keeping the difference. The paralegal then had the nerve to charge a commission, adds Dubin.

It’s obviously not enough to take ethics classes, one must be ethical & follow the law!!

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