Individuals facing criminal charges for an alleged insurance fraud are often confused and surprised when they are notified that they are facing criminal charges. However, these allegations should be taken very seriously, as the penalties for insurance fraud can be severe. An experienced Omaha insurance fraud lawyer can help if you are facing criminal charges for allegedly defrauding an insurance company.
Insurance fraud is punishable under civil and criminal law and carries harsh penalties upon conviction. A white-collar crimes attorney at Berry Law can work relentlessly to build a strong defense strategy on your behalf.
Common Types of Insurance Fraud
Insurance fraud is typically categorized into two types: internal and external fraud. Internal fraud is committed against an insurance company or its agents by an employee or agent of that company. Falsifying documents or statements and pocketing premiums are common examples of internal insurance fraud in our area.
Alternatively, fraudulent insurance acts committed against an insurance company by individuals or entities such as policyholders or medical providers are considered external fraud. Some examples of this type of insurance fraud include:
- Personal injury or “slip and fall” schemes
- Exaggerated claims
- Receiving payment by misrepresenting facts
- Property fraud
- Medical insurance billing fraud
Insurance Fraud Laws
The state’s Insurance Fraud Act grants civil immunity for anyone who participates in good faith in the investigation or reporting of fraudulent activity. A local lawyer can provide more insight on the penalties outlined in Nebraska Revised Statutes §44-6606. While the Insurance Fraud Act of Nebraska provides only for the issuance of civil penalties for committing insurance fraud, criminal charges could also be filed under Neb. Rev. Stat. §28-631(1).
Potential Penalties for Insurance Fraud
In civil insurance fraud cases, penalties for violating the Insurance Fraud Act include fines up to $5,000 for the first violation, $10,000 for the second violation, and $15,000 for every violation thereafter. Criminal penalties include imprisonment, fines, or both, and they vary depending on the fraudulent insurance act committed as well as the amount of illicit financial gain.
A felony conviction of insurance fraud could result in imprisonment for up to 4 years and a $25,000 fine. Otherwise, a misdemeanor offense is punishable by up to 1 year in prison and a $1,000 fine.
Although state law carries civil and criminal penalties for insurance fraud offenses, the penalties issued must be either civil or criminal, according to Neb. Rev. Stat. §§44-6607(1) and 28-631(5). An attorney in Omaha can assist an individual facing criminal insurance fraud charges with the development and execution of a tactful defense strategy.
Contact an Omaha Insurance Fraud Attorney
A conviction for insurance fraud could negatively impact your life beyond the civil or criminal penalties you may be subject to. If there are charges of insurance fraud made against you, you should consider seeking legal representation before moving forward with your case.
A seasoned Omaha insurance fraud lawyer is familiar with the applicable laws, as well as local court procedures and filings that may be required. A member of our team can analyze the facts of your case and advise you on how to proceed. Call Berry Law today to schedule your confidential consultation with a legal professional.