Fraud

Insurance fraud charges against Radovan Krejcir put on hold

Fraud charges against Czech businessman Radovan Krejcir were provisionally withdrawn in the Johannesburg Magistrate's Court on Monday.

Krejcir appeared before magistrate T Carstens and the State provisionally withdrew charges, citing other High Court cases that were underway.

The fraud charge against him relates to a R4.5 million claim he made to an insurance company, allegedly using medical papers stating he had cancer. His urologist Marian Tupy previously admitted to falsifying insurance documents so Krejcir could be paid out for bladder cancer.

The National Prosecuting Authority (NPA) said the charges were provisionally withdrawn pending the finalisation of the application for a review and the setting aside of Tupy's plea and sentence agreement.

“We can’t have two legal processes underway and parallel to each other,” NPA spokesman Mthunzi Mhaga said.

“The outcome of the review application will have a bearing on the prosecution of the case against Mr Krejcir.”

He said the NPA had already filed its opposing papers.

Outside court earlier, State prosecutor Riegal du Toit said he filed the application because other court cases overlapped with this case. He said the accused did not recant his version, but said he should never have pleaded guilty.

“We'll see what happens now in the High Court,” he said.

Krejcir looked happy and relaxed. He was wearing a black blazer and t-shirt with jeans. He fought extradition to his home country in 2008, where he was sentenced in absentia to six-and-a-half years for tax fraud. He was also charged with conspiracy to murder, counterfeiting, extortion, and abduction.

Last year, police “exchanged information” with Krejcir during their investigation into the murder of Teazers strip club owner Lolly Jackson, who also lived in Bedfordview, Joburg.

Both Krejcir and Jackson's business partner Mark Andrews had claims against Jackson's estate, which was being handled by lawyer Ian Jordaan. A charred body, believed to be Jordaan's, was found on top of his bakkie, next to the R59 in Brackendowns, Alberton, in September. – Sapa

Also view:

Radovan Krejcir implicated in life insurance fraud

Insurance fraudsters in New York charged with defrauding vehicle insurers with $279-million

Three-dozen people, including doctors, lawyers and 'patients', have been charged with scheming to defraud vehicle insurers out of more than $279-million in accident benefits.

Federal and New York City investigators said the defendants took part in a "medical fraud mill" involving bogus clinics in and around New York City that billed insurers for unnecessary or non-existent treatments.

They said the ring was designed to exploit New York's "no-fault" auto insurance law which requires vehicles registered in the state to carry insurance that lets drivers and passengers obtain up to R373 000 for accident injuries, regardless of blame.

RICO INVOKED

Several of the defendants are of Russian descent, 35 live in New York or New Jersey.

Authorities called the criminal case the largest involving no-fault vehicle insurance fraud and the first of its kind to allege violations of the federal Racketeer Influenced and Corrupt Organizations Act (RICO), a law often used to fight organised crime.

They estimated that the equivalent of R844-million was lost in the scheme which began around 2007. Ten doctors and three lawyers were among those charged. The indictment was unsealed Wednesday in the US District Court in Manhattan.

US attorney Preet Bharara said: "Today's charges expose a colossal criminal trifecta, as the fraud's tentacles simultaneously reached into the medical system, the legal system and the insurance system, pulling out cash to fund the defendants' lavish lifestyles."

Vehicle insurers consider New York one of the most difficult markets in which to profit, in part because of the no-fault law.

At a news media conference in Manhattan, Bharara said "pretty much every" insurer in New York's no-fault program was a target of the fraud. Wiretaps were also used in the investigation.

COPS POSED AS PATIENTS

According to the indictment, defendants Mikhail Zemlyansky, who used aliases like "Russian Mike,nd Michael Danilovich, also known as "Fat Mike," directed one of the two main branches in the scheme, while defendants Yuriy Zayonts, also known as "KGB", and Mikhail Kremerman ran the other.

Investigators said doctors were paid to set up fake bank accounts and prescribe unnecessary procedures or treatments, such as MRIs, neck and back braces and five-day-a-week physical therapy sessions. Lawyers filed fake personal-injury suits to obtain additional awards and defendants, known as "runners", got cash kickbacks for referrals and to coach patients on how to fake injuries.

Janice Fedarcyk of the FBI said: "The criminal enterprise, while it lasted, was obscenely profitable."

Raymond Kelly, New York City's police commissioner, said two of the "patients" in the scheme were in fact undercover New York City police officers. "Our undercover officers were treated like thousands of other 'patients' receiving therapy, tests and medical equipment they didn't need."

All 36 defendants were arrested on Wednesday. Thirty-five were expected to be arraigned in Manhattan on Wednesday. The 36th lives in Duluth, Minnesota, and was expected to appear in court there on Thursday.

Each defendant faces a maximum of 30 to 70 years in prison if convicted.

[Reuters]

For more on Insurance Fraud also view:

Where can we report insurance fraud in South Africa?

Insurance Fraudsters are getting caught and punished!!

For Road Accident Accident Cover in South Africa view:

RoadCover and Personal Injury Claims to the Road Accident Fund

Report fraudulent insurance claims and help keep insurance premiums affordable!

Do you know of someone who is submitting fraudulent insurance claims? Do you know that you can help yourself, other insured clients and the industry by reporting these fraudulent claims  - and that you can do so anonymously?

The Arrive Alive website received the following email from a visitor"

Question:

I would like to report a fraudulent claim which has been put through insurance. It has either been processed or still in the process of being put through. I have both details of the accident and pictures as well. Whom should i contact with the full details?

Answer:

It is best to report these fraudulent claims to the South African Insurance Crime Bureau via their website at http://www.saicb.co.za/

From this page you will be taken to the Deloitte Tip-offs Anonymous Page. Here you can find all your questions answered as well as some important other information on this mechanism for the reporting of insurance fraud:

"Deloitte Tip-offs Anonymous is a unique and innovative solution to dishonesty, fraud and other inappropriate behaviour in the workplace.
We are a completely independent, confidential whistleblowing hotline service operating 24-hours a day, 365 days a year.
It doesn't matter whether you're an employee, customer, supplier, manager or shareholder. Now you can report fraud and inappropriate activities in an organisation in a safe, confidential and secure way.
Tip-off information can be given to us by e-mail, fax, freepost or by phoning the toll-free 0800 number assigned to the organisation. Alternatively you can complete the Tip-off form on the website.

Deloitte Tip-offs Anonymous is a unique and innovative solution to dishonesty, fraud and other inappropriate behaviour in the workplace.
We are a completely independent, confidential whistleblowing hotline service operating 24-hours a day, 365 days a year.

It doesn't matter whether you're an employee, customer, supplier, manager or shareholder. Now you can report fraud and inappropriate activities in an organisation in a safe, confidential and secure way.
Tip-off information can be given to us by e-mail, fax, freepost or by phoning the toll-free 0800 number assigned to the organisation. Alternatively you can complete the Tip-off form on the website."

For more on Insurance Fraud also view:

Where can we report insurance fraud in South Africa?

Insurance Fraudsters are getting caught and punished!!

Be Alert to Online Banking Scams trying to get hold of your account details!!

Never ever allow others to get hold of your banking details by completing any form via the internet or on your cellular phone!Rather go to the bank if requested to verify any account details or change anything with regards to your account!

Example of Online Banking Scam:

Earlier today I received the following email:

"Attention Valued Customer.

We are currently running a new reactivation process on all cellphone banking profiles for better service delivery in 2012.

For this reason, it is compulsary that you manually reactivate your cellphone banking service by download the attached security file and providing us with the requested information.

Download attached file to continue.

Please Note - Failure to reactivate your account after 48 hours might lead to account suspenssion.

Regards

Cellphone Banking
FNB"

I decided to perform a quick search on the topic and "Googled" the search term "Warning FNB account activation process"

The 2nd search result to appear was "Types of Scams - Scams - Security Centre - FNB"

Under latest scams appeared several options:

By clicking on Phishing Scam - Instant Online Account Verification the following result appeared:

Conclusion:

Always be very alert and never provide your details accept at the counter of your bank. Do not perform any activations or confirmations or changes to your banking profile online or via your cellular phone!

If you receive any such request, go to your bank to enquire whether there is in fact any requirement to perform any action from your side!

Are men more likely to lie when submitting insurance claims?


Fraud costs the South African insurance industry millions of rands every year. Whether a person fabricates a loss or genuinely does suffer a loss, but then claims for items that they did not have, it’s a serious offense.

What makes insurance fraud so criminal is that it’s the innocent and truthful consumer who lands up footing the bill or subsidising fraudulent claims in the form of increased premiums.

Robyn Farrell, managing director of 1st for Women Insurance Brokers says that the insurance public is very quick to complain about escalating insurance premiums and how insurance companies employ harsh practices when it comes to investigating claims, but if these companies didn’t take such stringent measures, premiums would rise even more.

On the brighter side, drivers in the UK are being more honest when applying for quotes for vehicle insurance than they were previously. Let’s hope that this trend makes its way to our shores soon.

“The research conducted by car insurance price comparison website, Confused.com, found that there has been a sharp decline in the number of drivers lying to insurance providers with the intention of getting a cheaper rate on their cover compared to this time last year,” says Farrell.

Last year, a similar survey showed that one-third of women (46%) had not been truthful when applying for vehicle insurance. This year, 12% of women and 17% of men admitted that they had lied to their insurer.

This substantial drop in numbers of both men and women who lie to their vehicle insurers is telling: drivers are becoming more cautious about disclosing all the facts to their insurers because of the likely scenario that if they are caught; they could have their insurance claim deemed invalid.

“If your insurer finds that you have not disclosed all relevant facts pertaining to your vehicle, such as who the regular driver of the vehicle is, the company might impose justified penalties or even refuse to cover you after that,” warns Farrell.

“The main point to keep in mind is that the purpose of insurance is not enrichment but rather like-for-like replacement. The public needs to know that insurance fraud is a serious crime, and not reporting it will only result in unnecessary premium increases,” says Farrell.

If you wish to report insurance fraud or inappropriate claims behaviour, call the Insurance Fraudline on 0860 002526 or send an email to insurance@fraudline.co.za.

Also view:

Where can we report insurance fraud in South Africa?

Insurance Fraudsters are getting caught and punished!!

Financial adviser in Bellville sentenced to 15 years in jail for embezzlement

No Comments »Written on December 13th, 2011 by jonckie
Categories: Fraud, Legal


A financial broker who embezzled more than R4.5m from elderly professionals was jailed for 15 years by the Bellville Specialised Commercial Crime Court in Cape Town on Tuesday.

Magistrate Amrith Chabilall told the court that Francois Hendrik du Plessis, 43, had shown "no remorse whatsoever" and had instead tried to shift the blame onto a business partner who had committed suicide.

With Du Plessis in the dock was single mother Elmarie von Willigh, 44, who was found guilty as an accomplice and given a five-year suspended jail sentence. She was also sentenced to three years' house arrest.

Du Plessis was found guilty on 41 counts of theft, 35 of fraud, six of money-laundering and one of forgery.

Von Willigh was found guilty on 41 counts of theft, 22 of fraud, six of money-laundering and one involving the uttering (presentation) of a forged document.

Liquor

Chabilall warned Von Willigh that she was also banned from consuming liquor during her house arrest. Chabilall said Du Plessis had elicited the life savings of elderly professional people who had worked hard all their lives.

The investments were placed in a savings account to which Von Willigh had had access, and she had manipulated the account for the benefit of Du Plessis and herself.

Chabilall said: "The victims were professional people: doctors, psychiatrists, pharmacists and architects. The amounts invested with Du Plessis were inordinately large."

He said Du Plessis and Von Willigh were found not guilty on eight counts relating to the embezzlement of funds in excess of R1m. The only reason for their acquittal on these counts was that the victims had declined on religious grounds to testify.

Chabilall added: "All the victims were elderly, who relied on his advice. They placed their financial future in his hands, and one can only wonder at the gullibility of intelligent people to approach Du Plessis to invest their money."

- SAPA

Insurance broker convicted of defrauding 10 medical doctors in Cape Town

Former Old Mutual financial broker Francois Hendrik du Plessis was convicted on Tuesday of defrauding 10 medical doctors in Cape Town.

Bellville Specialised Commercial Crime Court magistrate Amrith Chabilall pronounced him guilty on 41 counts of theft, 35 of fraud, six of money-laundering and one of forgery.

With Du Plessis in the dock was co-accused Elmarie von Willigh, a former director of the company Capital Commitments. She had possession and control of all of Du Plessis' files pertaining to Old Mutual insurance policies and investments in shares.

Von Willigh was found guilty on 41 counts of theft, 22 of fraud, six of money-laundering and one involving the uttering (presentation) of a forged document.

They are to be sentenced on Wednesday. Both had been out on bail.

Chabilall told them: “As of this moment, neither of you are on bail any longer Ä you are now back in custody, and will be brought back to this court tomorrow.”

One of the medical practitioners who fell victim to the embezzlements is Dr Abdurehmam Kaskar, who was persuaded by Du Plessis to invest R135,000 in shares with the company APMI Holdings. Instead of investing the money in the shares, Du Plessis used it for himself.

On another count, Du Plessis falsely informed Sanlam that Dr Horst Kirsten had authorised him to withdraw R12,024 from an endowment policy, for investment purposes.

On another charge, Du Plessis persuaded Dr Mireille Landman to invest R40,000 in shares with APMI Holdings, but again used the money for himself.

Similarly, Dr Richard Maske was persuaded to invest R100,000 in shares, but the money was used by Du Plessis for his own personal benefit. On another count, Dr Rabia Patel was duped into making a share investment worth R488,902, which never materialised.

Other doctors who also fell victim to the scam were Marthinus Zeeman, Johannes Rossouw, Barny Kahanowitz, Hugh Casserley and Charles Matthews. - Sapa

Also view:

Where can we report insurance fraud in South Africa?

Insurance Fraudsters are getting caught and punished!!

Ex-Bafana player Lebohang Morula in court over truck hijack

Photo from Kickoff

Stolen goods worth R3.4 million were found in a warehouse he allegedly owns.

Former Bafana Bafana and Jomo Cosmos player Lebohang Morula appeared in the Ga-Rankuwa Magistrate’s Court on Friday, police said.

Warrant Officer Mathews Nkoadi said Morula was granted R1500 bail.

He was arrested in connection with the hijacking of a truck, after stolen goods worth R3.4 million were found in a warehouse he allegedly owns.

The goods apparently originated from a truck recently hijacked between Gauteng and Durban.

Morula was a member of the national squad at the 1998 Soccer World Cup in France.

Also view:

Click for the complete Crime Report 2010/2011

What does the latest crime statistics tell us about the need for Insurance in South Africa

Related posts:

  1. SAICB – Business and SAPS working successfully together to reduce insurance fraud
  2. Examples of Insurance Fraud in South Africa

Criminal charges against TMPD Chief formalized

Justice Project South Africa (JPSA) hereby confirms that its National Chairman, Howard Dembovsky has laid formal criminal charges against Deputy Chief of the Tshwane Metropolitan Police Department, Mr Ndumiso Jaca for violating Section 68 of the National Road Traffic Act.

The charges were laid at the Alberton SAPS station on Friday 16 September 2011 and a docket with the reference CAS 413/9/2011 was registered on the same day. It is expected that the docket will be forwarded to SAPS Pretoria for action. The charges that have been brought are in terms of Section 68(1) and 68(2)(b) of the National Road Traffic Act, 1996 and are of similar severity as drunk driving, “reckless or negligent driving” and fraud. They are not a simple traffic fine issue as some seem to believe.

This has resulted from the revelation on Monday 12 September2011 that Deputy Chief Jaca had affixed to two distinctly different motor vehicles with what were at the time false number plates reading “BALTY GP”. One plate was affixed to a Harley Davidson V-Rod motorcycle that is registered in the name of the president of the Sopranos Biker Club, Mr Moraka Ephraim Mokoka and the others were fitted to a BMW Z4 coupe which was both unroadworthy and unregistered as of Monday 12 September2011.

In addition, the BMW Z4 has (or had at that time) blue flashing lights fitted inside its windscreen and it has allegedly been observed on several occasions driving in the emergency lane on the Mabopane highway with them flashing.

On Monday 12 September, a formal complaint by JPSA was drafted and sent to National Traffic Police Chief, David Tembe, CEO of the RTMC, Collins Letsoalo, Senior Executive Manager of the RTMC, Ashref Ismail, Acting Registrar of the RTIA, Japh Chuwe and Advocate Poopedi of the ICD. The complaint was also copied to spokesman for the Minister and Department of Transport, Logan Maistry as well as to Captain Mbada at SAPS Gauteng Commander, General Petros’ office.

The results of this complaint have been that the ICD confirmed an investigation into corruption had been launched against Mr Jaca and that a complaint was lodged with the Tshwane Metropolitan Police Internal Affairs Department by one of David Tembe’s staff on his instruction as Chief of the National Traffic Police. Ashref Ismail of the RTMC stated on radio that no criminal charges had been laid because the vehicles were on private property at the time that the photographs were taken.

Additionally, the Mayor of Tshwane has launched an “administrative enquiry” into the matter and has extended Mr Jaca two weeks to respond to the matter.

It is vitally important to understand that the National Road Traffic Act has no requirement for proof to be furnished that a vehicle fitted with counterfeit plates has been operated on a public road and that it additionally defines the mere manufacture and/or possession of such plates a criminal offence.

Until Friday 16 September 2011, no criminal matter had been brought against Mr Jaca and it was clear that none would be forthcoming unless JPSA did so, since there is clear cronyism being practiced in this matter. Any civilian accused of a similar crime would have been summarily arrested and charged immediately when the matter arose, but clearly Mr Jaca is considered to be an untouchable who is additionally thought to be above the law due to his position.

Since the emergence of this matter, Mr Jaca has been very busy indeed during the course of last week, having roadworthied, registered and licenced the vehicle which he bought in May 2008 after it was written off and deregistered on 3 March 2008. Below are the indisputable facts on this matter:

• On Monday 12 September 2011, it was revealed that Mr Jaca had affixed these number plates to two (not just one) vehicles – prior to “BALTY GP” even existing on the eNaTIS database. They were therefore counterfeit at that time. The BMW was also unroadworthy, unregistered and unlicensed at that time.
• On Tuesday 13 September 2011, he roadworthied the vehicle at the Randburg Licensing Testing Station in Johannesburg despite him being resident and employed in the Tshwane Metropolitan area.
• On Wednesday 14 September 2011, he registered the vehicle and the personalised plate “BALTYGP”, which in turn relates to a newly registered Gauteng number plate applicable to this vehicle at the vehicle at Mabopane Licensing Department in Pretoria. This vehicle is now registered as a built up (code 3) vehicle.
• On Thursday 15 September 2011, he licenced the vehicle at the vehicle at Mabopane Licensing Department in Pretoria.
It would appear that Mr Jaca, whose biker nickname is “Balty” is under the impression that by now having registered the vehicle and his previously false number plate, all will be forgiven and he will no longer be deemed as to have committed a crime. If only it were that simple, there can be no doubt that scores of other criminals would simply undo their crimes by complying with the law after they have been caught breaking it.

It must be noted that the laying of these criminal charges has nothing whatsoever to do with any personal vendettas against Mr Jaca and I don’t even know him, nor do I have any personal issues at all with him. It is not however in the interests of justice and equality under the framework of South Africa’s laws to knowingly allow any person to commit a crime and not report it since that in itself is also a crime. What's right is right and what's wrong is wrong - simple.

Furthermore, no ordinary citizen would have been afforded the leniency and preparedness to turn a blind eye to any crimes they have committed which Mr Jaca has been afforded by the various authorities concerned. Doing so is not justice; it is a gross injustice on the part of all concerned and sends an entirely inappropriate message to all South Africans.

Howard Dembovsky

National Chairman - Justice Project South Africa (NPC)

See below in this release the following:

• Proof that the personalised plate did not exist on the eNaTIS database on Monday 12 September 2011.
• Proof that the vehicle and number plate are now registered on the eNaTIS database.
o Please note that personal particulars and detailed information relating to the legal registration of this plate and vehicle have been partially obscured from these images to protect Mr Jaca’s privacy and prevent criminal activity by those who clone vehicles etc.
• These images are available in downloadable larger format at https://www.jp-sa.org/media.asp

Hospitality industry warned against online booking scams!

Has someone succeeded in defrauding your restaurant, guesthouse or hotel? There are many fraudsters trying to defraud through online payments and pre-bookings. We would like to share two emails sent to the Arrive Alive website:

Example 1

“My name is Peter.A.Purdon from M&G Investment International. I want to know if there is any availability for 5 guests coming for Business meeting that needs rooms, apartments services if possible. They are coming for visit in your city. If there is availability, kindly let me know about the dates and the quotes.

They are looking forward to Arrive on 20th of October 2011. The ONLY mode Of Payment is :Visa , Master or Amex Card.

Write me immediately with an update on the list of all the services you can offer and available at that time. Call me anytime.

Director: Peter.A.Purdon

M & G International Investments UK

233 Wale Street, London EC2V 7HN

Phone: + (44) 704-5768990

Example 2:

“My name is Robert Smith I will like you to offer 4 of my Clients with Accommodation at your Place and Meanwhile their bookings details listed below

ROOM TYPE:4 Standard Rooms

Check In: 10Th /11/ 2011

Check Out:16Th /11/ 2011

Duration Of Stay 6 Nights

GUEST NAMES:

JAMES/COLLINS/MR

LONGMAN/CASTROL/MR

RICHARDS/EWARDS/MR

GRACE/HAMMER/MRS

Kindly let me know the total cost for the 4rooms rooms for 6 nights and full Payment would be made in advance via credit cards (MASTER CARDS or VISA CARDS).

I await your soonest reply and look forward to building an strong business relationship with you.

Sincere Regards,

Robert Smith”

By typing the address into Google, I managed to find more on these online booking scams on this page “Online scam against restaurant owners”

Method of fraudulent booking

A visitor to the above website provided the following method:

“How it works is they ask you to put a deposit on their credit card through “your restaurant”. They ask that you charge the credit card $9000 but then take $7000 and give it to a local car company. Once you process it you will be contacted by your bank and YOU become liable for the total $9000 that is charged to the card as it is a stolen credit card and the transaction will be reversed!”

Insurance might not cover loss/ damage from these fraudulent transactions

I raised this with OUTsurance and enquired whether insurance would cover such losses. I received the following response:

“We do not offer any product to cover losses such as these and believe the responsibility relies on the person/business involved to ensure they are participating in valid transactions prior to making any payment.”

Does OUTsurance alert clients to these and other scams as they become known?

“This is not something we have done and because it is often difficult to differentiate between valid threats and spam mails, it is not an option we will presently be involved in.”

How can owners/managers of hospitality establishments protect themselves?

I discussed this with Anthony Lamont Smith, Revenue & Yield Manager at the Balalaika in Sandton, Johannesburg. He emphasized the importance of not operating in isolation but also sharing insights with others in the industry.

In Sandton the managers of several departments in hotels meet regularly to discuss experiences and risks. These include revenue managers, food and beverage managers, security etc. This allows them to alert one another to specific incidents and trends in criminal activity, bad payers, bad behaviour etc.

We would like to urge managers and owners in the hospitality industry to join in the battle against fraud and to share their experiences with others who might fall victim to these scammers!