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National Insurance Crime Bureau

Financial Fraud in Michigan

A homeowner reported two power surge damage claims within four months of one another.  The first claim was paid for allegedly damaged electronic equipment.  The second claim was made for allegedly damaged appliances and food spoilage.  Investigation indicated that the invoices for electrical inspections furnished by the insured in both claims may have been fraudulent, as well as, the invoices for replacement items allegedly purchased to replace the electronic equipment damaged in the first claim.  NICB contacted the companies that allegedly inspected the equipment in both claims and both denied ever doing any inspections for the insured, as well as, stating that the alleged invoices for their services were fraudulent.  Evidence was presented to law enforcement who conducted further investigation resulting in a warrant being issued for the homeowner for one count of False Pretenses of $1,000 or more but less than $20,000.