Insurance Fraud :: essays research papers fc

Insurance hypocriteInsurance Fraud is becoming one of the top forms of fraud in America. Martin Frankel owned several mansions, luxury cars, and diamonds. He lived a life of do it luxury. A life of luxury that was paid for with money stolen through policy policy fraud. Martin Frankel is one of the major contri furtherors to damages fraud. He constructed a turning away to misappropriate over 200 million dollars from insurance companies in several states crosswise the U.S. He began his first minor case of insurance fraud in 1986 and was not convicted until 2002 for insurance fraud, racketeering, and money laundering. Throughout his career he acquire new ways to embezzle money and began to master the art of insurance fraud.Insurance fraud cost Americans billions of dollars every year as high premium. It is viewed as mostly as a white-collar crime but it can come in many different forms. People who ordinarily commit these kinds of frauds are motivated by greed for necessity or seeking wealth and luxury. This may have been the case with Martin Frankel as utter by the prosecutors he was motivated by greed, sexual desire and a lust for the high life a mansion in Greenwich, picture cars, diamonds the size of nickels, and several girlfriends.In 1986 convince a businessman named Douglas maxwell to join him in etablishing the Frankel Fund. The Frankel Fund was an investment partnership in which the particular partners had to invest at least $50,000 each. In 1991 the Frankel Fund failed and the Securities and Exchange fit out banned him from dealing with securities business for life. After that he using simulated names he set up the Creative Partners Fund LP. This broth was another scam like the Frankel Fund but the minimum investment was only $10,000 and it spread through a much broader base of investors. He and his partner Sonia Schulte formed a thunor trust to purchase insurance companies that where in financial trouble.Martin Frankel made his millions from keeping the very large reserves from the purchased insurance companies and spending it for luxuries instead of investing it and buy securities. He built a large false insurance empire through using the reserves to buy more and more insurance companies and then transferring the money from familiarity to company to look as if the money remained untouched. He called his scheme the Ponzi scheme after Charles Ponzi who became rich from a pyramid scheme.