RD79 - 2014 Annual Report on the Insurance Fraud Program


Executive Summary:
The Virginia State Police (VSP) Insurance Fraud Program (IFP) is entering its seventeenth year, and continues to make significant strides against the crime of insurance fraud as the number of cases opened in 2014 surpassed the previous year’s total.

The impact of insurance fraud can be felt at all levels of the economy in Virginia. With the exception of tax evasion, no other white-collar crime robs Virginians more than insurance fraud.

In 2014, the IFP received 1,941 notifications of suspected insurance fraud. Since 1999, when the Program began, more than 23,000 referrals have been made to the VSP. Insurance fraud special agents opened 1,102 cases in 2014, which is more than double the number opened in 2013, and 254 arrests were made for insurance fraud and other related crimes.

Court-ordered restitution totaled more than $631,000 in 2014, which brings the total amount of ordered restitution since the program began in 1999 to more than $18 million. Suspected false insurance claims reported to the IFP since 1999, both attempted and collected, totaled more than $169 million.

Over the years the program has been operating, 6,133 fraud investigations have been initiated, and agents have made a total of 3,082 arrests for insurance fraud. In 2014, the IFP presented 274 cases to the commonwealth’s attorneys, which was more than double the number of cases presented in 2013.

As required by Virginia law, the VSP investigates suspected fraud in property and casualty lines of insurance, as well as suspected workers’ compensation fraud. The 2014 statistics show 1,216 property fraud-related notifications were received by the IFP. Notifications involving injury and casualty fraud totaled 498, of which 25 percent were for worker’s compensation claims. Vehicle fraud remains the largest percentage in both categories.

The IFP’s sponsorship of the Red Flag Training Program continued for a fifth year, bringing together commonwealth’s attorneys, VSP special agents and insurance company investigators to share information about investigating and prosecuting insurance fraud. The four-day training was coordinated by the Commonwealth’s Attorneys Services Council.

Governor Terry McAuliffe also issued a proclamation declaring the week of May 11, 2014, as Insurance Fraud Awareness Week. The proclamation was presented to the insurance industry at the Virginia Chapter of the International Association of Special Investigation Units (VA IASIU) Annual Seminar. Insurance Fraud Awareness Week has been recognized by Virginia’s governors since 2002.

We look forward to 2015 and continuing the successful fight against insurance fraud. The Virginia State Police would like to thank everyone who has contributed to our success .The Insurance Fraud special agents and analysts, the insurance industry, commonwealth’s attorneys and Virginia’s citizens are all to be commended for their efforts to stamp out fraud in the commonwealth. Working together, with a “sharp eye” for criminals, we can continue to Stamp Out Fraud in Virginia.