Zalma on Insurance
Education • Business
Insurance Claims professional presents articles and videos on insurance, insurance Claims and insurance law for insurance Claims adjusters, insurance professionals and insurance lawyers who wish to improve their skills and knowledge. Presented by an internationally recognized expert and author.
Interested? Want to learn more about the community?
March 10, 2023
Chutzpah - Claim From Killer Refused

No Compelling Reason to Release Convicted Arsonist and Murderer
Barry Zalma

Read the full article at https://lnkd.in/gciym_hC and see the full video at https://lnkd.in/guzJ3JdF and at https://lnkd.in/g_DRGB4C and at https://zalma.com/blog plus more than 4450 posts.

A person with no compassion for his many victims, with an expression that defines chutzpah, sought compassionate release from his 110 year sentence in United States Of America v. John T Veysey III, No. 99 CR 00381-1, United States District Court, N.D. Illinois, Eastern Division (March 2, 2023). John T. Veysey III, while currently serving a 110-year sentence for wire fraud, arson, and felony by fire, moved the USDC for compassionate release because he was fat, had high blood pressure and was afraid of the Covid pandemic.

BACKGROUND

Throughout the 1990s, Veysey devised various deadly schemes to cause losses and collect insurance proceeds. Among other offenses, Veysey fraudulently obtained $959,849.47 in insurance proceeds from a car “accident” involving his first wife, from the death of his first wife, and from arson-for-profit fires to three of his residences. He tried to obtain an additional $1.3 million in insurance proceeds by attempting to kill his second wife and then-infant son in a house fire, and he schemed to fake the deaths of another woman and her sons.

On March 6, 2001, following a six-week trial, a jury found Veysey guilty on 18 counts. Consistent with the then-binding Sentencing Guidelines, the USDC sentenced Veysey to the statutory maximum of 110 years’ imprisonment.

Veysey argued that several factors justify a sentence reduction, including his health conditions, ongoing risks associated with COVID-19 in the federal prison system, alleged sentencing disparities between him and other offenders, his purported rehabilitation, and his preparations for reintegrating into the community. On July 6, 2022, Veysey submitted an updated motion in which he discusses COVID-19 risks, his ongoing health concerns, and his recidivism risk level.

DISCUSSION

As a general matter, a federal court may not modify a term of imprisonment once it has been imposed. The court may reduce a sentence if “extraordinary and compelling reasons” justify release.

Extraordinary and Compelling Reason

The kind of extraordinary and compelling circumstances contemplated by the statute include some new fact about an inmate’s health or family status, or an equivalent post-conviction development, not a purely legal contention for which statutes specify other avenues of relief. Legal arguments that an initial sentence was made in error do not qualify.

Veysey first points to his health conditions-including hypertension, atrial fibrillation, and obesity-as circumstances justifying a sentence reduction. Veysey may not use a motion for compassionate release to argue that the court’s original sentencing decision was incorrect.

In addition, Veysey offered evidence of his rehabilitation while in prison. But rehabilitation alone is not an extraordinary and compelling reason for release, nor can rehabilitation render otherwise ordinary circumstances extraordinary.

Also, the fact that Veysey has now spent several years in prison and has made efforts to prepare for life outside of prison does not qualify as an extraordinary and compelling reason that could justify his release.

Even if Mr. Veysey were to present an extraordinary and compelling reason for compassionate release, the court would still deny his motion under the § 3553(a) factors. “Consideration of even one § 3553(a) factor may show that the others do not matter.”

The first § 3553(a) factor, which addresses the “nature and circumstances” of a defendant’s offenses and personal circumstances, strongly militates against a sentence reduction. His crimes were shocking:

  • Veysey killed his first wife,

  • tried to kill his second wife and then-toddler son,

  • torched multiple houses, and

  • purchased life insurance coverage on another woman shortly before he was arrested-all to collect insurance money.

Veysey carried out these extraordinarily serious offenses over several years, destroyed numerous lives, and caused enormous emotional and physical pain and monetary damage.

Even if Veysey had presented the court with an extraordinary and compelling reason for his release, consideration of § 3553(a)(1) alone would provide a sufficient basis for denying his motion.

ZALMA OPINION

Veysey is proof that insurance fraud is a violent crime. He managed to murder and commit arson-for-profit and insurance fraud for years before he was arrested, tried, convicted and jailed for 110 years. Like the person who murdered his parents and sought empathy because he was an orphan, Veysey defined the Yiddish term “chutzah” by asking to be released because, in prison he became obese, had high blood pressure and AFIB. The USDC, wisely, refused his request since his condition was neither extraordinary nor compelling reasons for release but the opposite, a compelling reason existed to keep him in prison forever.

(c) 2023 Barry Zalma & ClaimSchool, Inc.

Subscribe and receive videos limited to subscribers of Excellence in Claims Handling at locals.com https://zalmaoninsurance.locals.com/subscribe.

Consider subscribing to my publications at substack at https://barryzalma.substack.com/publish/post/107007808

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]

Write to Mr. Zalma at [email protected]; http://www.zalma.com; http://zalma.com/blog; daily articles are published at https://zalma.substack.com. Go to the podcast Zalma On Insurance at https://anchor.fm/barry-zalma; Follow Mr. Zalma on Twitter at https://twitter.com/bzalma; Go to Barry Zalma videos at Rumble.com at https://rumble.com/c/c-262921; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to the Insurance Claims Library – https://zalma.com/blog/insurance-claims-library.

Subscribe and receive videos limited to subscribers of Excellence in Claims Handling at locals.com https://lnkd.in/gfFKUaTf.

Barry Zalma, Esq., CFE is available at http://www.zalma.com and [email protected]

00:10:03
Interested? Want to learn more about the community?
What else you may like…
Videos
Posts
September 18, 2026
Expert May Only Testify to What Experience Supports

Insurance Expert May Not Testify to Speculative and Contains Unsupported Conclusions.

Posted on September 18, 2026 by Barry Zalma

See the full video at and at https://rumble.com/v7fmifw-expert-may-only-testify-to-what-experience-supports.html

In Michele A. Over, and The Estate Of Paul R. Over v. State Farm Mutual Automobile Insurance Company, and State Farm Fire And Casualty Company, Civil Action No. 23-cv-02243-PAB-STV, United States District Court, D. Colorado (September 14, 2026) Michele and Paul Over sued State Farm Fire and State Farm Auto over hail-damage and stolen-vehicle claims.

The operative dispute concerned State Farm Auto’s motion to exclude or limit opinions from plaintiffs’ insurance-industry expert, Aaron Castillo. Castillo.

Law

The proponent of expert testimony must establish by a preponderance of the evidence that an expert is qualified and that the opinions are helpful, sufficiently grounded, and reliably derived and applied. Experience-based opinions must explain how the...

00:03:10
September 17, 2026
Convicted on 29 Tax-Refund-Fraud Counts

150 Months in Prison for Tax Fraud
Post 4846

Posted on September 17, 2026 by Barry Zalma

See the full video at https://lnkd.in/g8rh3JBX and https://lnkd.in/gmkdy-9C, In United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.

FACTS

In United States Of America v. Thomas Addaquay, United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.
FACTS

Thomas Addaquay controlled United Consolidated Accounting and Business Services (UC), nominally a check-cashing business.

The government proved a three-stage tax-refund scheme that converted the resulting refund checks into usable funds through ...

00:05:23
September 14, 2026
Court Enforces Fifth Amendment & Refuses to Compel Answers

Major Fraud Perpetrator Asserts Fifth Amendment Privilege to Avoid Prosecution

Post 5489

Posted on September 14, 2026 by Barry Zalma

Fraudster Refuses to Answer Questions About His Alleged Fraud

See the full video at https://lnkd.in/gvicAMDr and at https://lnkd.in/gvicAMDr

In Great American Insurance Co. v. Gemstone Property Management, LLC, et al., No. 23-cv-9100 (LJL), United States District Court, S.D. New York (September 8, 2026) Great American Insurance Company alleged that it was defrauded through a scheme in which Subin Associates, LLP recruited individuals to stage construction-site injuries, arranged unnecessary medical treatment and litigation funding, and pursued fraudulent personal-injury claims.

Luis Manuel Garcia Salcedo, resulted in a $6 million settlement. Non-party Jose Hernandez allegedly worked as an assistant manager at Subin, operated Hernandez Associates, and owned litigation-funding companies that shared office space with Subin and provided services to its clients.

After Great American ...

00:05:14
11 hours ago
Plaintiff’s Reading of the Policy is Plaintiff’s Reasonable Allegations Posted on October 19, 2026 by Barry Zalma CLASS ACTION THAT STATES A SIMPLE CLEAR AND PLAUSIBLE CAUSE OF ACTION SURVIVES Post 4868 In Sheila Marino v. Farmers New World Life Insura

Plaintiff’s Reading of the Policy is Plaintiff’s Reasonable Allegations

Posted on October 19, 2026 by Barry Zalma

Post 4868

CLASS ACTION THAT STATES A SIMPLE CLEAR AND PLAUSIBLE CAUSE OF ACTION SURVIVES

In Sheila Marino v. Farmers New World Life Insurance Company, No. 2:25-cv-02200-JNW, United States District Court, W.D. Washington, Seattle (October 13, 2026) defendant Farmers New World Life Insurance Company’s (“FNWL”) moved to dismiss Plaintiff Sheila Marino’s putative class action involving flexible universal life insurance.

Marino filed a putative class action in King County Superior Court alleging: (1) breach of contract, (2) breach of the implied covenant of good faith and fair dealing, and (3) violation of the Washington Consumer Protection Act (CPA).

She pleaded two theories: an “overcharge” theory and an “underpayment of interest” theory asked the Court to take judicial notice of historical Federal Funds Effective Rates.

THE LAW

Pleading Standard.

To survive a Rule 12(b)(6) motion, a ...

post photo preview
October 16, 2026

Alleged Defamatory Statements Must be Of and Concerning Plaintiffs

Posted on October 16, 2026 by Barry Zalma

To Prove Defamation the Statement Must be Of and Concerning the Plaintiffs

Post 4867

In Michael Moloney and Sergio Cantu v. United Services Automobile Association, No. 04-25-00519-CV, Court of Appeals of Texas, Fourth District, San Antonio (October 14, 2026) Michael Moloney and Sergio Cantu appealed from the trial court’s granting of a traditional motion for summary judgment in favor of United Services Automobile Association (“USAA”) on their defamation claim.
BACKGROUND

Moloney and Cantu sued USAA for defamation, alleging that they are the principals of Informed Roofing & Restoration, LLC (“Informed Roofing”), which is primarily engaged in the residential roofing repair and replacement business, and that an employee or agent of USAA had made false and defamatory statements to the San Antonio Police Department (“SAPD”) concerning them.

Specifically, Moloney and Cantu alleged that an employee of ...

post photo preview
October 15, 2026
Zalma’s Insurance Fraud Letter – October 15, 2026

ZIFL – Volume 30, Issue 20 Subscribe to ZIFL here https://lnkd.in/gfpn78FM

Posted on October 15, 2026 by Barry Zalma

THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL

Zalma’s Insurance Fraud Letter (ZIFL) continues its 30th year of publication dedicated to those involved in reducing the effect of insurance fraud.

ZIFL is published 24 times a year is written by Barry Zalma.

It is provided FREE to anyone who visits the site at https://lnkd.in/gVT5G9s

Six Insane Fraud Schemes the Trump Administration Has Uncovered Stealing from the taxpayer has now become a multi-billion-dollar industry in America. Obamacare has been a magnet for scammers.

Florida Insurance Agent Pleads Guilty in $300,000 Premium Finance Scheme

Daniel Raney, 41, who managed Raney Insurance and Raney Ventures in Pensacola, was arrested after AFCO Direct.

RIFE WITH FRAUD ALLOWS DEMANDS TO ESTABLISH RESTITUTION

Six Insane Fraud Schemes the Trump Administration Has Uncovered

Stealing from the taxpayer has now become a multi-billion-dollar industry in America – and the ...

post photo preview
See More
Available on mobile and TV devices
google store google store app store app store
google store google store app tv store app tv store amazon store amazon store roku store roku store
Powered by Locals