Entries in insurance fraud (2)


Did Bugatti Owner Crash Car for Huge Insurance Payout?

Adam Gault/Thinkstock(NEW YORK) – A trial is set to begin later this month after an insurance company filed a lawsuit against a Texas man accused of intentionally driving his $1 million Bugatti car into a lagoon to collect on the insurance policy.

At the time of the crash three years ago, the car’s driver, Andy House, told police he dropped his phone while driving down a highway near Houston. House told police that when he looked up, he saw a pelican and swerved off the road and into a lagoon in Galveston, Texas

Nearby motorists, who were fascinated with the 2006 Bugatti Veyron, caught the entire accident on tape and posted it to YouTube.

Three weeks before the accident, Philadelphia Indemnity Insurance Co. said, it issued a $2.2 million policy on the Bugatti, one of a few hundred made. The insurance company is using the video as evidence to say House committed fraud because there was no pelican in that now-infamous video, according to the company.

The insurance company is also saying that House, who reportedly owns Performance Auto Sales, made no attempts to brake and he “intentionally drove the Bugatti into the lagoon to destroy the car and collect proceeds approximately twice the value of the car.”

Philadelphia Indemnity says it has an informant who alleges that House offered him cash to steal the car and then set it on fire, according to court documents.

House is counter-suing, saying the company owes him $2.2 million for damages to the rare car. He declined a request for an interview, but in a statement to ABC News, his attorney said, “we will not try our case in the media, but will rely on the facts and evidence admitted during the trial of the matter.”

ABC News legal analyst Dana Cole said, “This video is exhibit A. It is the critical evidence that the insurance company is relying on to void this insurance policy. It is extremely rare to have evidence like this.”


Copyright 2012 ABC News Radio



Weight Loss Guru Wanted by Feds on Insurance Fraud Charges

Federal Bureau of Investigation(CHICAGO) -- A doctor who advertised his weight loss clinics on Chicago TV for nearly a decade has attracted more attention than he wanted. Dr. Gautam Gupta is being sought by the FBI on charges that he defrauded insurance companies and the government out of $25 million.

Gupta, 57, may have fled to India, the FBI said.

"We are looking into every possibility as to where he fled. India is a possibility, but that's why we're asking the public to help us track him down or get any information on his whereabouts," an FBI spokesman said.

Gupta owns up to five Nutrition Clinics in Illinois. A federal criminal complaint accuses Gupta of mail fraud, health care fraud, and conspiracy. He faces up to 35 years in prison if convicted of the most serious charges.

The criminal complaint alleges that Gupta and members of his staff submitted claims to the Blue Cross/Blue Shield Insurance Company and the Illinois Medicaid program for unnecessary procedures or procedures that were never even performed. During the period of June 2001 through January 2010, the Nutrition Clinic was paid almost $25 million for such claims.

"Several patients stated that ultrasound tests were conducted on them before they came into contact with a physician or physician assistant. There would, therefore, be no way for the physician or assistant to determine if this patient had a condition, or symptoms of a condition, which would indicate an ultrasound test of any kind was needed," stated the complaint.

The complaint stated that staff members at times did not consult physicians when handing out weight loss drugs such as Phentermine or diuretics saying that "patients were required to return to the clinic once a week or once every other week in order to obtain more Phentermine or other controlled substances. During these return visits, the patients would have their weight or blood pressure taken by various females dressed in medical scrubs and would not leave the room in order to obtain a physician's permission or authorization to prescribe and dispense the drug or to increase or decrease the dosage."

Calls by ABC News to several of Gupta's nutrition centers were all routed to the same person who repeatedly said, "No comment," and hung up.

Copyright 2011 ABC News Radio

ABC News Radio