Another scam involves unlicensed insurance sales. These illegal salesmen collect as much premium income as possible in a short period with no intention of paying customer claims. In Operation Short Tail, the FBI's Newark office uncovered 70 shell companies claiming to offer insurance. These bogus companies were eventually closed down and liquidated. Operation Soft Assets focused on Alan Teale and his wife, who orchestrated a network of bogus property and casualty insurance companies across the country.
Insurance fraud is clearly a nationwide problem.
The fraud committed by executives, agents and others results in increased premiums and reduced coverages for all of us.