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Howard Ain, Troubleshooter: False Claims

CINCINNATI (Howard Ain) -- A man files an insurance claim saying an accident cost him his arm.

That claim ended up costing him his freedom.  It's almost a million dollars worth of insurance claims and all of them a lie.  It is an outrageous case of insurance fraud but it's a crime that's cost all of us.

Derik Thieme, a 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 Le Duc.  He submitted $900,000 dollars worth of claims for disability benefits.  There was one problem though, it turns out he had both of his arms.  The insurance companies were "suspicious" of Le Duc's claims and asked postal inpsectors to look into the case.
Thieme continued, "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.  He took those hospital forms, altered the forms, and mailed them to the insurance company to support his claim."
Le Duc received $12,000 dollars 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 said.

Le Duke pleaded guilty and was sentenced to more than 4 years in prison. He was ordered to repay more than 70,000 dollars restitution.

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