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Rip-Off Alert: Companies hit by fake one-armed conman

Reported by: Marie Mortera
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Updated: 3/25/2014 4:23 am
LAS VEGAS (KSNV -- Insurance fraud costs everyone in the long run. In this Rip-Off Alert from Wisconsin, one person raked in nearly $1 million in fraudulent claims.

U.S. Postal Inspector Derik Thieme said Michael Le Duc submitted $900,000 worth of claims for disability benefits.

“He made claims with three large insurance companies that he had an accident where he lost his left arm in a wood chipper,” Thieme said. “As it turned out, he had both of his arms.”

The insurance companies were suspicious of Le Duc’s claims and asked postal inspectors to look into the case.

“In investigating the matter, what we found was that he had been to the hospital and had actually been seen by the doctor for another matter,” Thieme said.

“He took those hospital forms, altered the forms, and mailed them to the insurance company to support his claim.”

The insurance companies aren’t the only ones losing money -- all consumers pay the price.

“The insurance companies need to recoup any losses they may have or expenses and that’s only going to be passed along to consumers,” Thieme said. “So it really affects the general public in that it causes rate increases and things of that nature.”

Le Duc pleaded guilty and was sentenced to more than four years in prison. He was ordered to pay more than $70,000 in restitution.

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