In insurance law, criminal charges may be brought against an insurer in many different ways. The most common is through the use of the False Claims Act, which prohibits making false or fraudulent claims for payment from the government. In addition, criminal charges may also be brought under state laws prohibiting insurance fraud.
The False Claims Act is a federal law that prohibits any person or entity from knowingly submitting a false or fraudulent claim for payment from the government. The act applies to all insurance claims, including those made under Medicare, Medicaid, and other government programs. Penalties for violating the False Claims Act can include fines of up to $250,000 per false claim and up to five years in prison.
In addition to the False Claims Act, several states have laws that make it a crime to commit insurance fraud. Insurance fraud is any act committed to defraud an insurance company. This can include making false or misleading statements on an insurance application, filing a false claim, or engaging in other unlawful activities designed to collect insurance benefits.
Penalties for insurance fraud vary from state to state but can include fines and imprisonment. In some cases, convicted criminals may also be required to pay restitution to the insurance company they defrauded.
If you have been charged with committing insurance fraud, it is important to seek the help of an experienced attorney immediately. An attorney can review the facts of your case and help you understand your legal options. In some cases, it may be possible to have the charges against you dismissed or reduced.