Minnesota law supposedly contributes to insurance fraud

Anyone in St. Paul who has been in a car accident knows that Minnesota is a no fault state, meaning that an insurance company will pay any bill related to an accident, no matter who causes the accident. While this helps to protect people who might otherwise be unable to cover their medical costs following an accident, some people are saying the policy is also contributing to insurance fraud, a felony under Minnesota law.

According to the Insurance Federation of Minnesota, the Russian mafia is participating in a growing number of insurance fraud cases in south Minneapolis. According to the organization, there are individuals who are creating fake accidents in an effort to collect money from insurance companies. Moreover, members of this criminal enterprise have also allegedly established fake clinics, billed for accidents that never happened and overbilled, all of which could be considered insurance fraud.

While it is possible that individuals are taking advantage of the no-fault insurance policy in Minnesota to participate in fraudulent behavior, there are also countless others who have genuine claims and desperately need insurance payouts. What’s worse, naming a specific group as responsible for insurance fraud could have a far-reaching impact.

Imagine a Russian immigrant getting injured in a car accident in south Minneapolis. Normally, he or she would be able to file for an insurance payout to cover the cost of medical care and property damage. But if the individual suddenly becomes a suspect for insurance fraud because he or she is Russian, it could not only delay the compensation the individual needs to cover his or her bills, but it could also lead to a very serious criminal charge.

Source: CBS WCCO 4, “Organized Crime Causes Spike In Car Insurance Fraud,” Heather Brown, Feb. 18, 2013

Being charged with a felony in Minneapolis, such as insurance fraud, is incredibly serious and requires an experienced criminal defense lawyer. Learn more about the work we have done on behalf of people charged with felonies by visiting our website.

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