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
14 hours ago
Man Bites Dog Story – Hertz Sues Alleged Fraudsters

Hertz Succesfully Refuses to Pay Alleged Fraudulent Health Care Providers

Post 5222

Read the full article at https://www.linkedin.com/pulse/man-bites-dog-story-hertz-sues-alleged-fraudsters-zalma-esq-cfe-efbgc, see the video at and at and at https://zalma.com/blog plus more than 5200 posts.

Proactive Victim of Fraud Defeats Health Care Providers

In Hertz Vehicles, LLC v. Alignment Chiropractic, P.C., et al, Index No. 157368/2024, 2025 NY Slip Op 33627(U), Motion Seq. No. 001, NYSCEF Doc. No. 46, Supreme Court, New York County (September 30, 2025) Plaintiff alleged it is not obligated to pay no-fault benefits for the medical treatment of defendants for injuries while occupants of a 2023 Hyundai, owned and self-insured by Hertz.

FACTUAL BACKGROUND

Plaintiff moved for a default judgment against defendants Alignment Chiropractic, P.C., and many other alleged health care providers.

Plaintiff also ...

00:06:28
placeholder
15 hours ago
Man Bites Dog Story – Hertz Sues Alleged Fraudsters

Hertz Succesfully Refuses to Pay Alleged Fraudulent Health Care Providers

Post 5222

Read the full article at https://www.linkedin.com/pulse/man-bites-dog-story-hertz-sues-alleged-fraudsters-zalma-esq-cfe-efbgc, see the video at and at and at https://zalma.com/blog plus more than 5200 posts.

Proactive Victim of Fraud Defeats Health Care Providers

In Hertz Vehicles, LLC v. Alignment Chiropractic, P.C., et al, Index No. 157368/2024, 2025 NY Slip Op 33627(U), Motion Seq. No. 001, NYSCEF Doc. No. 46, Supreme Court, New York County (September 30, 2025) Plaintiff alleged it is not obligated to pay no-fault benefits for the medical treatment of defendants for injuries while occupants of a 2023 Hyundai, owned and self-insured by Hertz.

FACTUAL BACKGROUND

Plaintiff moved for a default judgment against defendants Alignment Chiropractic, P.C., and many other alleged health care providers.

Plaintiff also moved...

00:06:28
placeholder
November 05, 2025
Not Nice to Shop the Federal Court to Avoid State Court

Who’s on First? State or Federal Court

Post 5222

Read the full article at https://lnkd.in/gWj97cFs, see the video at https://lnkd.in/gtS6CpUX and at https://lnkd.in/gQEAeyHc,

Conflict Between State & Federal Court Requires Abstention

See the video at https://lnkd.in/gtS6CpUX and at https://lnkd.in/gQEAeyHc,

Conflict Between State & Federal Court Requires Abstention

Hector David Campoverde was injured at a Brooklyn construction site in 2015. Campoverde was an employee of Vazquez Bro Restoration Inc., a subcontractor for C.C.C. Renovation Inc., which was itself a subcontractor for general contractor L&M Builders Group LLC. In Starr Indemnity & Liability Company v. Scottsdale Insurance Company, No. 24-CV-3309 (PKC) (TAM), United States District Court, E.D. New York (September 30, 2025) was asked to determine whether one or more of the involved insurers is obligated to indemnify Campoverde, and in what order Camporverde can receive indemnity, from one or more insurer.

Underlying Incident:

Campoverde sued the ...

00:07:43
October 31, 2025
The Zalma Philosophy of Claims Handling – Part 9

The Professional Claims Handler
Post 5219

Posted on October 31, 2025 by Barry Zalma

An Insurance claims professionals should be a person who:

Can read and understand the insurance policies issued by the insurer.
Understands the promises made by the policy.
Understand their obligation, as an insurer’s claims staff, to fulfill the promises made.
Are competent investigators.
Have empathy and recognize the difference between empathy and sympathy.
Understand medicine relating to traumatic injuries and are sufficiently versed in tort law to deal with lawyers as equals.
Understand how to repair damage to real and personal property and the value of the repairs or the property.
Understand how to negotiate a fair and reasonable settlement with the insured that is fair and reasonable to both the insured and the insurer.

How to Create Claims Professionals

To avoid fraudulent claims, claims of breach of contract, bad faith, punitive damages, unresolved losses, and to make a profit, insurers ...

post photo preview
October 20, 2025
The Zalma Philosophy of Claims Handling – Part I

The History Behind the Creation of a Claims Handling Expert

The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210

This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster

When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.

I was initially sat at a desk reading a text-book on insurance ...

post photo preview
October 20, 2025
The Zalma Philosophy of Claims Handling – Part I

The History Behind the Creation of a Claims Handling Expert

The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail

Post 5210

This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.

My Training to be an Insurance Claims Adjuster

When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.

I was initially sat at a desk reading a text-book on insurance ...

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