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December 30, 2025
Montana Lawyer Commits Insurance Fraud and Receives Minimal Punishment

Montana County Attorney Admits to Insurance Fraud & Is Only Suspended from Practice for 60 Days
Post 5251

Read the full article at https://lnkd.in/gnBaCjmv, see the video at https://lnkd.in/gfpVsyAd and at https://lnkd.in/gC73Nd8z, and at https://zalma.com/blog plus more than 5250 posts.

A Lawyer Who Commits Insurance Fraud and Pleas to a Lower Charge Only Suspended

In The Matter Of: Naomi R. Leisz, Attorney at Law, No. PR 25-0150, Supreme Court of Montana (December 23, 2025) the Montana Office of Disciplinary Counsel (ODC) filed a formal disciplinary complaint with the Commission on Practice (Commission) against Montana attorney Naomi R. Leisz.

On September 25, 2025, Leisz tendered a conditional admission and affidavit of consent. Leisz acknowledged the material facts of the complaint were true and she had violated the Montana Rules of Professional Conduct as alleged by ODC.

ADMISSIONS

Leisz admitted that in April 2022, her minor son was involved in a car accident in which he hit a power pole. Leisz’s son failed to report the accident. Leisz later filed an insurance claim in which she falsely claimed she was the driver of the vehicle at the time of the collision. Leisz’s insurance company paid the claim. Leisz noted her son was insured under the policy and she assumed the insurer agrees the accident would have been covered by it.

Leisz later learned she was going to face criminal charges from the incident. On June 30, 2023, she resigned from her position as Sanders County Attorney. Leisz self-reported that she was voluntarily going on inactive status with the Montana State Bar, effective July 3, 2023. However, Leisz did not subsequently contact the Montana State Bar and change her status to inactive status. However, she resumed practicing because ODC had not taken action on her self-report by the time her criminal matter concluded.

THE CRIME

Leisz was charged with Criminal Insurance Fraud, a felony, in July 2023. She ultimately pled guilty to Obstructing Justice, a misdemeanor, pursuant to a plea agreement. The Sanders County District Court entered its order sentencing Leisz to six months incarceration in Sanders County Jail, all suspended, plus fines, fees, community service, and restitution to Northern Lights, Inc., in the amount of $3,293.00, for the damage to the power pole.

THE ADMISSION & CONSENT TO DISCIPLINE

In the tendered Conditional Admission and Affidavit of Consent, Leisz admitted she agreed to discipline in the form of: a 60-day suspension from the practice of law; paying the costs of these proceedings; and complying with all notice requirements of the state rules.

In its Findings of Fact, Conclusions of Law, and Recommendation for Discipline, the Commission recommended the Court accept Leisz’s conditional admissions for violating M. R. Pro. Cond. 8.4, and impose discipline in the form of:

1. A 60-day suspension from the practice of law in Montana;
2. Payment of costs incurred by ODC and the Commission in connection with this matter; and
3. Compliance with all notice requirements in MRLDE 29 and 30.

The Commission further considered aggravating factors in this case to be Leisz’s refusal to cooperate with law enforcement, her false insurance claim, and her misstatement to ODC that she was going on inactive status. The Commission found mitigating factors to include Leisz’s sincere remorse, her many years of practice without disciplinary incidents, her voluntary withdrawal from practice, and no monetary harm to a client.

The Montana Supreme Court accepted the Commission’s Recommendation that it accept Leisz’s Rule 26 tendered admission is ACCEPTED AND ADOPTED.

Leisz was SUSPENDED from the practice of law for 60 days, effective 30 days from the date of thE Order of Discipline.

Leisz shall pay the costs of these proceedings and Leisz shall comply with all notice requirements of the rules.

ZALMA OPINION

Ms. Leisz saved her career as a lawyer my admitting her criminal conduct, agreeing to conviction for obstruction of justice to avoid trial and conviction for felony insurance fraud and being disbarred from the practice of law by stating remorse which convinced the Commission created to disciple felonious attorneys who recommended easy to survive punishment which was accepted by the Supreme Court. I’m old fashioned and can find no excuse for a lawyer committing insurance fraud and would have recommended a more severe punishment to the Supreme Court if I were on the Commission.

(c) 2025 Barry Zalma & ClaimSchool, Inc.

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00:08:27
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Post 5397

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This is a Fictionalized True Crime Story of Insurance Fraud explaining why Insurance Fraud is a “Heads I Win, Tails You Lose” situation for Insurers. The story is one of a collection designed to help 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.

The Insured purchased, for the first time in his life, a policy of Personal Articles Floater Insurance (PAF) scheduling $125,000 worth of ladies jewelry. He advised the insurer that the jewelry was always kept in a class E safe at his residence. He also told the insurer that he was employed full time as the owner of a gasoline service station and that he had never been canceled or suffered a previous loss.

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Post 5421

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Post 5418

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An Insurer May Rescind An Insurance Policy Where The Applicant Made A Material Misrepresentation In The Application.

In Union Mutual Fire Insurance Company v. 844 Knickerbocker, LLC, et al. No. 2024-10359, Index No. 602824/22, 2026 NY Slip Op 04789, Supreme Court of New York, Second Department (July 29, 2026) Union Mutual Fire Insurance Company issued commercial insurance policies to 844 Knickerbocker, LLC, and Sanjaya Mallick based on applications stating that the insured property contained two apartment units. After an underlying personal injury action was filed, Union Mutual determined that the property actually contained three apartment units and rescinded the policies on the ground that the defendants had made a material misrepresentation in the applications.
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A misrepresentation is material if the insurer would not have issued the same policy, or would have issued it only on different terms, had the true ...

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August 05, 2026
It Doesn’t Pay to Lie in an Application for Insurance

Rescission for Material Misrepresentation
Post 5418

Posted on August 5, 2026 by Barry Zalma

An Insurer May Rescind An Insurance Policy Where The Applicant Made A Material Misrepresentation In The Application.

In Union Mutual Fire Insurance Company v. 844 Knickerbocker, LLC, et al. No. 2024-10359, Index No. 602824/22, 2026 NY Slip Op 04789, Supreme Court of New York, Second Department (July 29, 2026) Union Mutual Fire Insurance Company issued commercial insurance policies to 844 Knickerbocker, LLC, and Sanjaya Mallick based on applications stating that the insured property contained two apartment units.

LAW:

A misrepresentation is material if the insurer would not have issued the same policy, or would have issued it only on different terms, had the true facts been disclosed. To establish materiality as a matter of law, the insurer must submit documentation of its underwriting practices, such as manuals, guidelines, bulletins, or rules addressing similar risks.

DISCUSSION/ANALYSIS:

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