A type of white-collar crime that impacts people in Kentucky and across the country is insurance fraud, but the manner in which insurance fraud is defined varies from state to state. Often times, insurance fraud laws are written into a state’s criminal code. In other cases, these statutes are contained among other fraud laws. Charges of insurance fraud can also vary, with some classified as felonies and others as misdemeanors.
Insurance fraud can involve a variety of policies, including health care and property liability, At trial, a prosecutor in some jurisdictions will be required to show that documentation containing false or misleading information was used in order to obtain an insurance policy or reimbursement.
Some states also have additional statutes aimed at aggravated insurance fraud. Aggravated insurance fraud typically targets defendants that have previously been convicted on that charge or a similar one. In many of those states, aggravated insurance fraud is classified as a felony. This can result in years behind bars as well as thousands of dollars in fines. While most of these charges relate to prosecution on the state level, it is possible that insurance fraud could lead to federal charges. This is especially true if the alleged fraud involved the use of the United States Postal Service.
While the phrase white-collar crime doesn’t sound ominous, the potential penalties for a conviction for insurance fraud are. A person that has been charged with insurance fraud could be facing years in prison as well as the additional consequences of living as a convicted felon. As a result, people who are in this situation might find it advisable to meet with a criminal defense attorney as soon as possible so that a strategy to counter the allegations can be constructed.