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 criminals.
Read the full 20 page issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-05-15-2025.pdf
Insurance Fraud is a Violent Crime
Murder for Insurance Proceeds Results in Life in Prison
It Is Not Nice to Break Your Wife’s Neck to Collect her Life Insurance So You Get Life In Prison
Insurance fraudster and murder Kenneth Russell Moyer appealed the trial court’s denial of his petition for resentencing under Penal Code section 1172.6. Moyer took issue with the jury’s conclusion he was a beneficiary on his wife’s insurance policy, his counsel’s failure to properly litigate this issue at his first trial and argued his appellate counsel’s conclusion that he is ineligible for relief under section 1172.6 constituted ineffective assistance of counsel.
Read the full 20 page issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-05-15-2025.pdf
Health Insurance Fraud Convictions
Texas Insurance Fraudster Given Prison Sentence and $350K Fine
Mayela Saby Cantu was sentenced by a federal judge because the McAllen woman reportedly helped commit property and title fraud schemes to 24 months in prison and three years of supervised release.
Chief U.S. District Judge Randy Crane also ordered Cantu to pay $350,000 in restitution.
Read about dozens of convictions and the full 20 page issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-05-15-2025.pdf
Insurance Fraudsters are not Nice – They Are Criminals
Lawyers Attempt to Protect Assets of their Clients Charged with Insurance Fraud From Seizure by State Fails
In The People v. David M. Browne et al., B332304, California Court of Appeals, Second District, Seventh Division (May 6, 2025) found criminal defense lawyers in contempt.
Read the full 20 page issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-05-15-2025.pdf
Before the Interview Begins
Every professional knows that the art of the interview cannot be learned exclusively from the printed word. Conversely, experience alone, without the knowledge and application of general principles, is no assurance of an interviewer’s professional development. The adept professional must not only know what these principles are, but how and when to apply them. Even the simplest technique will occasionally succeed. If the interviewer is to succeed, he or she must know the necessary background information, possess a thoroughly prepared attitude, and, above all, have a plan.
Read the full 20 page issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-05-15-2025.pdf
MORE MCCLENNY MOSELEY & ASSOCIATES ISSUES
This is ZIFL’s forty-sixth installment of the saga of McClenny, Moseley & Associates and its problems with the federal courts in the State of Louisiana and what appears to be an effort to profit from what some Magistrate and District judges indicate may be criminal conduct to profit from insurance claims relating to hurricane damage to the public of the state of Louisiana.
McClenny, Moseley & Associates & the FBI
The FBI’s New Orleans Division is actively investigating McClenny, Moseley & Associates (MMA), now known as MMA Law Firm, for alleged fraud related to hurricane litigation, primarily targeting Southeastern Louisiana homeowners after Hurricane Ida in 2021.
Read the full 20 page issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-05-15-2025.pdf
From Steven Badger of Zelle LLP
More About Attorney Eric Dick
Mr. Badger reported on LinkedIn that: “Another lawsuit has been filed against Eric Dick by one of his homeowner clients. This lawsuit, filed in Tarrant County, alleges legal malpractice, breach of fiduciary duty, and fraud. Interestingly, the lawsuit alleges that Mr. Dick and his law firm “fraudulently claimed they have incurred expenses and sought the same from Plaintiffs’ settlement funds.” Lawyers have to be very careful with the expenses they subtract from their clients’ settlement proceeds. It will be enlightening to see what expenses Mr. Dick charged his clients in this appraisal matter. I also wonder if Mr. Dick charged his usual 45% contingency fee. I have previously raised the question of whether charging a 45% contingency fee in a matter resolved in appraisal is an “unconscionable fee” under Rule 1.04 of the Texas Disciplinary Rules of Professional Conduct.
Read the full 20 page issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-05-15-2025.pdf
CONVICTIONS OF OTHER THAN HEALTH INSURANCE FRAUD
New Jersey Woman Sentenced to Prison for Forced Labor and Other Federal Crimes
Bolaji Bolarinwa, 51, of Moorestown, previously was found guilty of two counts of forced labor, one count of alien harboring for financial gain and two counts of document servitude following a two-week trial before U.S. District Judge Karen M. Williams in Camden federal court. Judge Williams imposed the sentence in Camden federal court.
Read the full 20 page issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-05-15-2025.pdf
Disaster Fraud Schemes
Since the wildfires struck Los Angeles this year homeowners and business people, and their insurers, will face attempts to defraud the public who the victims of the fires and their insurers face attempts at fraud, including the following forms of fraud generally attempted after a catastrophe:
1. False or exaggerated claims by policyholders.
2. Claims made by people who did not have property in the area of hurricane damage.
3. Misclassification of flood damage as wind, fire, or theft.
4. Claims filed by individuals residing hundreds of miles outside the disaster-zone.
5. Bid-rigging by contractors, falsely inflating the cost of repairs.
6. Contractors requiring upfront payment for services, then failing to perform the agreed upon repairs.
7. Unlicensed public adjusters making promises that they could not fulfill.
8. Charity fraud scams designed to misappropriate funds donated for disaster relief.
Read the full 20 page issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-05-15-2025.pdf
The Tort of Bad Faith & Insurance Fraud
The logarithmic growth of insurance fraud in the state of California, and other states that have allowed tort damages for bad faith breach of insurance contracts, may be directly traced, in part, to the judicial creation of the tort of bad faith. Before the tort of bad faith, insurers with a reasonable belief that an insured was presenting a fraudulent claim would refuse to pay it and file a suspected fraudulent claim report with the Department of Insurance Fraud Division or Fraud Bureau. Persons perpetrating the fraud would, in most cases, accept the refusal as a cost of doing business and went on to the next fraudulent claim.
Read the full 20 page issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-05-15-2025.pdf
BARRY ZALMA
Barry Zalma, Esq., CF, Barry Zalma, Inc., 4441 Sepulveda Boulevard, CULVER CITY CA 90230-4847, 310-390-4455
Read the full 20 page issue of ZIFL at http://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-05-15-2025.pdf
Summary Judgment Against Plaintiff’s Bad Faith Case and Insurer Granted Attorneys Fees
Post 5177
Posted on August 28, 2025 by Barry Zalma
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Contumacious Conduct to Texas Court Causes Insured Plaintiff and her Lawyer to Have a Judgment in Favor of the Insurer and Both Charged to Pay More Than $137,000
In Carmen Aleman, Eric B. Dick, And The Dick Law Firm, PLLC v. Standard Casualty Company, No. 01-23-00572-CV, Court of Appeals of Texas, First District (August 26, 2025)
Background
Carmen Aleman, along with Eric B. Dick and the Dick Law Firm, PLLC, filed a lawsuit against Standard Casualty Company for breach of contract, breach of the duty of good faith and fair dealing, fraud, and violations of the Texas Deceptive Trade Practices Act (DPTA) and the Texas Insurance Code.
According to Aleman, at some point, “someone . . . stop[ped] by to look at [the property] and there was some damage,” ...
Killer Abuses Court System With Multiple Attempts to Get Out of Prison
Post 5178
Posted on August 29, 2025 by Barry Zalma
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Attempted Arson for Profit that Resulted in Death Requires Life in Prison
In Suresh Kumar v. United States, No. 1:22-cv-4874 (MKV), United States District Court, S.D. New York (August 26, 2025) Kumar, convicted of arson for profit where four people died sought to be let out of jail by filing a Habeas Corpus motion.
BACKGROUND
Suresh Kumar was convicted by a jury of multiple felonies for his role in burning down a hotel he owned for insurance money. Four people died, and fifteen others were injured. Kumar was only sentenced to life in prison.
Kumar pursued multiple previous challenges to his conviction and sentence, which have withstood both direct appeal and collateral attacks. Kumar now petitions for a writ of habeas corpus arguing actual innocence and citing Supreme ...
“Accident” Includes Continuous or Repeated Exposure to Conditions
Post 5176
“Occurrence” is an Accident & Includes Repeated Damage
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In The Cobblestone Lofts Condominium v. Great American Insurance Company, Admiral Indemnity Company et al., Appeal No. 4265, 2025 NY Slip Op 04749, Index No. 653189/21, Case No. 2024-01860, Supreme Court of New York, First Department (August 21, 2025) the court resolved the issues.
FACTS
The Supreme Court of New York, First Department (trial court) dealt with a declaratory judgment action concerning an insurance coverage dispute. The plaintiff, a condominium association, was being sued for property damage and bodily injury caused by unintended water and moisture infiltration, resulting in toxic contamination of a condominium unit. The infiltration was allegedly caused by the plaintiff’s breaches of its contractual obligations under its bylaws...
Is Injury in the Course of Self-Defense an Occurrence?
Post 5171
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When There is no Accident the Intentional Acts Exclusion is Irrelevant
The case involves a tragic incident where Kimberly Mollicone was killed during a gunfight between her husband, Matthew Mollicone, and Daniele Giannone. The central issue is whether Giannone’s actions, taken in self-defense, are covered under his State Farm homeowner’s insurance policy.
In State Farm Fire And Casualty Company v. Daniele Giuseppe Giannone; Heidi C. Aull, personal representative for the estate of Kimberly Ann Mollicone, Nos. 24-1264, 24-1265, United States Court of Appeals, Sixth Circuit (August 5, 2025) resolved the dispute.
THE INSURANCE COVERAGE
Although rare in insurance contracts the policy in question provides coverage for the insured’s liability to third parties who are injured ...
Rulings on Motions Reduced the Issues to be Presented at Trial
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CASE OVERVIEW
In Richard Bernier v. State Farm Mutual Automobile Insurance Company, No. 4:24-cv-00002-GMS, USDC, D. Alaska (May 28, 2025) Richard Bernier made claim under the underinsured motorist (UIM) coverage provided in his State Farm policy, was not satisfied with State Farm's offer and sued. Both parties tried to win by filing motions for summary judgment.
FACTS
Bernier was involved in an auto accident on November 18, 2020, and sought the maximum available UIM coverage under his policy, which was $50,000. State Farm initially offered him $31,342.36, which did not include prejudgment interest or attorney fees.
Prior to trial Bernier had three remaining claims against State Farm:
1. negligent and reckless claims handling;
2. violation of covenant of good faith and fair dealing; and
3. award of punitive damages.
Both Bernier and State Farm dispositive motions before ...
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 ...
