Someone Stole My Rolls Royce
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Investing in California real estate in the 1980’s was fun. Whatever you bought you could sell for more. The doctrine: “there is always a greater fool than I,” worked.
Li Chen Hua immigrated to California from Hong Kong in 1981. He did it legally, winning a lottery for a Green Card. He came to the U.S. with his savings (converted from Hong Kong dollars to diamonds for ease of transportation).
Li set himself up in a condominium on Wilshire Boulevard just west of the community known as Westwood and east of Beverly Hills. It only cost him $500,000. He bought three other condos in the same building that first year and paid his mortgages and living expenses from the rent he collected.
In 2008 the bottom fell out of the California real estate market. Mr. Li, found himself owning real estate mortgaged to over $14,000,000 but worth only $9,000,000. The rents he collected were not sufficient to pay the various mortgages and allow him to continue in the life style with to which he had become accustomed. He needed to make a great deal of money fast and then, leaving his mortgagees to fend for themselves, return to Hong Kong for a pleasant retirement.
Mr. Li’s cousin was the number one luxury car dealer in all of the People’s Republic of China. She had no competition, an almost unlimited supply of vehicles, and overhead limited to shipping costs. Li’s account at CitiBank, Hong Kong was growing. He put his savings in broad-based stock mutual funds specializing in high risk emerging markets. His investments doubled in two years.
Li decided it was time to stop while he was ahead. He would ship his pRoger Parsons, the claims supervisor at Massive and Stoney Insurance Company, looking out his window at the slow moving, brown Illinois River, was about to order a check for the settlement when he received a report from the NICB that the car had been shipped by Li to Hong Kong a month before the reported theft. Customs officials in Hong Kong reported the car arrived and was picked up by its consignee. The NICB had copies available of the shipping documents with Mr. Li’s signature.
Massive and Stoney retained counsel to examine Mr. Li under oath about the theft. Li and his attorney appeared at Massive’s lawyer’s office belligerent, demanding immediate payment of a legitimate insurance claim.
“Mr. Li is a wealthy and highly respected member of the community. This examination under oath is a waste of time and an attempt to create useless and unwarranted delays. If payment is not received immediately, Mr. Li will sue Massive and Stoney for bad faith” Len Shyster, Li’s attorney, orated.
The examination under oath was not completed. Using his testimony at the examination under oath the NICB, working with Massive and Stoney and fifteen other insurers, the California Highway Patrol, the US Customs Service and the Fraud Division of the California Department of Insurance resulted in a major arrest of 41 individuals, including Li, for insurance fraud, grand theft, and fraud against lenders. A ring of insurance criminals who made hundreds of millions of dollars from insurers across the United States was stopped because one of the criminals allowed his customs broker to record the VIN number of his automobile before it was shipped out of the US.
Li, the instigator of the fraud, testified against his coconspirators. He served six months of electronic confinement to his penthouse apartment and paid $250,000 in restitution to one insurer.
He is now living a comfortable retirement in Hong Kong.
ZALMA OPINION
The state should be proud that they took down a massive insurance fraud scheme but, because they needed him, Li retired a rich man to Hong Kong. He may regret it now that the Communist Party took over Hong Kong.
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(c) 2022 Barry Zalma & ClaimSchool, Inc.
Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 54 years in the insurance business. He is available at http://www.zalma.com and [email protected].
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Notice of Claim Later than 60 Days After Expiration is Too Late
Post 5089
Injury at Massage Causes Suit Against Therapist
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Hiscox Insurance Company (“Hiscox”) moved the USDC to Dismiss a suit for failure to state a claim because the insured reported its claim more than 60 days after expiration of the policy.
In Mluxe Williamsburg, LLC v. Hiscox Insurance Company, Inc., et al., No. 4:25-cv-00002, United States District Court, E.D. Missouri, Eastern Division (May 22, 2025) the trial court’s judgment was affirmed.
FACTUAL BACKGROUND
Plaintiff, the operator of a massage spa franchise, entered into a commercial insurance agreement with Hiscox that provided liability insurance coverage from July 25, 2019, to July 25, 2020. On or about June 03, 2019, a customer alleged that one of Plaintiff’s employees engaged in tortious ...
ZIFL – Volume 29, Issue 11
The Source for the Insurance Fraud Professional
Posted on June 2, 2025 by Barry Zalma
Post 5087
See the full video at and at
Read the full article and the full issue of ZIFL June 1, 2025 at https://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-06-01-2025.pdf
Zalma’s Insurance Fraud Letter – June 1, 2025
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ZIFL – Volume 29, Issue 11
The Source for the Insurance Fraud Professional
Read the full article and the full issue of ZIFL June 1, 2025 at https://lnkd.in/gTWZUnnF
Zalma’s Insurance Fraud Letter (ZIFL) continues its 29th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at ...
No Coverage if Home Vacant for More Than 60 Days
Failure to Respond To Counterclaim is an Admission of All Allegations
Post 5085
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In Nationwide Mutual Insurance Company v. Rebecca Massey, Civil Action No. 2:25-cv-00124, United States District Court, S.D. West Virginia, Charleston Division (May 22, 2025) Defendant Nationwide Mutual Insurance Company's (“Nationwide”) motion for Default Judgment against Plaintiff Rebecca Massey (“Plaintiff”) for failure to respond to a counterclaim and because the claim was excluded by the policy.
BACKGROUND
On February 26, 2022, Plaintiff's home was destroyed by a fire. At the time of this accident, Plaintiff had a home insurance policy with Nationwide. Plaintiff reported the fire loss to Nationwide, which refused to pay for the damages under the policy because the home had been vacant for more than 60 days.
Plaintiff filed suit ...
ZIFL Volume 29, Issue 10
The Source for the Insurance Fraud Professional
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Zalma’s Insurance Fraud Letter (ZIFL) continues its 29th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/ You can read the full issue of the May 15, 2025 issue at http://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-05-15-2025.pdf
This issue contains the following articles about insurance fraud:
Health Care Fraud Trial Results in Murder for Hire of Witness
To Avoid Conviction for Insurance Fraud Defendants Murder Witness
In United States of America v. Louis Age, Jr.; Stanton Guillory; Louis Age, III; Ronald Wilson, Jr., No. 22-30656, United States Court of Appeals, Fifth Circuit (April 25, 2025) the Fifth Circuit dealt with the ...
Professional Health Care Services Exclusion Effective
Post 5073
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This opinion is the recommendation of a Magistrate Judge to the District Court Judge and involves Travelers Casualty Insurance Company and its duty to defend the New Mexico Bone and Joint Institute (NMBJI) and its physicians in a medical negligence lawsuit brought by Tervon Dorsey.
In Travelers Casualty Insurance Company Of America v. New Mexico Bone And Joint Institute, P.C.; American Foundation Of Lower Extremity Surgery And Research, Inc., a New Mexico Corporation; Riley Rampton, DPM; Loren K. Spencer, DPM; Tervon Dorsey, individually; Kimberly Dorsey, individually; and Kate Ferlic as Guardian Ad Litem for K.D. and J.D., minors, No. 2:24-cv-0027 MV/DLM, United States District Court, D. New Mexico (May 8, 2025) the Magistrate Judge Recommended:
Insurance Coverage Dispute:
Travelers issued a Commercial General Liability ...
A Heads I Win, Tails You Lose Story
Post 5062
Posted on April 30, 2025 by Barry Zalma
"This is a Fictionalized True Crime Story of Insurance Fraud that explains why Insurance Fraud is a “Heads I Win, Tails You Lose” situation for Insurers. The story is designed to help everyone to Understand How Insurance Fraud in America is Costing Everyone who Buys Insurance Thousands of Dollars Every year and Why Insurance Fraud is Safer and More Profitable for the Perpetrators than any Other Crime."
Immigrant Criminals Attempt to Profit From Insurance Fraud
People who commit insurance fraud as a profession do so because it is easy. It requires no capital investment. The risk is low and the profits are high. The ease with which large amounts of money can be made from insurance fraud removes whatever moral hesitation might stop the perpetrator from committing the crime.
The temptation to do everything outside the law was the downfall of the brothers Karamazov. The brothers had escaped prison in the old Soviet Union by immigrating to the United...
