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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.
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July 29, 2026
Guilty of Conspiracy to Commit Fraud, Wire Fraud, and Mail Fraud

Fraudster’s Suit Fails and Defendant Stays in Jail

Posted on July 29, 2026 by Barry Zalma

It is Fraud to Sell Product Using Scripts Containing Half-Truths and Omissions

That Made the Plans They Sold Appear to Provide Broader Coverage Than They Actually Did.

Post 5413

n United States of America v. Steven Dorfman, No. 24-2275, United States Court of Appeals, Seventh Circuit (July 27, 2026) Steven Dorfman owned and served as CEO of Simple Health, a telemarketing company that sold limited indemnity healthcare plans by telephone. The government alleged that Dorfman and other executives directed sales employees to use scripts containing half-truths and omissions that made the plans appear to provide broader coverage than they actually did.

A jury convicted Dorfman of conspiracy to commit fraud, wire fraud, and mail fraud, and he appealed after the district court denied his post-trial motions.

BACKGROUND

Limited indemnity plans are designed to supplement — not replace — traditional forms of medical insurance. As a result, they differ from traditional plans in several significant ways. Unlike traditional plans, for example, limited indemnity plans pay only fixed amounts when an insured incurs certain health expenses, and they are not legally mandated to cover prescription drugs or any specific types of treatment.

Perhaps most significantly, limited indemnity plans do not provide a ceiling on a plan holder’s out-of-pocket costs. As a result, the customer bears the risk of large medical bills (beyond the fixed amount provided by the plan). These plans are not governed by the Affordable Care Act (“ACA”) and do not satisfy the ACA’s individual mandate.

Dorfman himself had been told many times by Girouard that the sales scripts elided material facts, such as the plan’s lack of an out-of-pocket maximum. And he was aware of HII’s objection to the claim that the plans would save customers “up to 70%.” Moreover, Dorfman had the final say over the script’s content and knew that, when HII representatives came to Simple Health, they were shown an HII-approved script that was different from the one that Dorfman had approved for use.

JURY INSTRUCTION ON “SCHEME TO DEFRAUD”

Dorfman challenged the district court’s instruction defining “scheme to defraud” for the jury. The government asked the district court for a jury instruction similar to one found in United States v. Woods, 335 F.3d 993, 997-98 (9th Cir. 2003). The district court agreed and defined “scheme to defraud” as follows: In determining whether a scheme to defraud exists, you are entitled to consider not only the defendants’ words and statements, but also the circumstances in which they are used as a whole.
LAW:

The mail and wire fraud statutes prohibit schemes to obtain money or property by means of false or fraudulent pretenses, representations, or promises. The court held that the statutes do not require an expressly false statement; misleading half-truths, omissions, and deceptive statements may be sufficient when material and made with intent to defraud.

ANALYSIS/DISCUSSION:

The Seventh Circuit rejected Dorfman’s challenge to the “scheme to defraud” instruction, concluding that the instruction properly allowed the jury to consider misleading statements, omissions, and the surrounding circumstances. The court also found no reversible error in the jury’s receipt of Exhibit 10, a training video that had been admitted into evidence but not shown during trial; even assuming error, Dorfman failed to show a reasonable probability that it affected the verdict.

Finally, the court rejected Dorfman’s constructive-amendment and unanimity arguments, reasoning that evidence about concealment from HII, regulators, and the Better Business Bureau was used to show knowledge and intent, not to prove a separate fraud scheme.

CONCLUSION:

The court affirmed the judgment. It held that the jury instructions, evidentiary rulings, and absence of a specific unanimity instruction did not constitute reversible error, and that the evidence supported the jury’s finding that Dorfman knowingly participated in a fraudulent scheme targeting customers.

Accordingly, the district court’s instruction that even if statements as part of the scheme are not literally false, you may consider whether the statements taken as a whole were misleading and deceptive is a correct recitation of the law.

Simply put, Dorfman’s argument that the government pursued a fraud theory different from what the indictment described finds no support in the record. And it follows from this that a specific unanimity instruction was unnecessary.

ZALMA OPINION

People who commit insurance fraud, are caught, arrested, tried and convicted do not take their failure appropriately – they believe they have a right to steal from victims and make their crimes successful. They don’t but they litigate every possible issue to reverse their conviction and sentence. Most times, like this one, the attempt fails. Hopefully with the US DOJ’s new instructions from the White House more will be caught, tried, and convicted.

(c) 2026 Barry Zalma & ClaimSchool, Inc.

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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
22 hours ago
Castro Valdez Had an Available Administrative Appeal and Failed to Establish a Ground for Excusing

Administrative Review Permits the Agency to Apply its Expertise

Post 4574

In Erwin Jordan Castro Valdez v. Warden, Otay Mesa Detention Center, No. 26-cv-06147-BAS-JLB, United States District Court, S.D. California (October 30, 2026) Castro Valdez, a Cuban national paroled into the United States, was arrested on June 23, 2026, for alleged insurance fraud, grand theft, and making a false report to law enforcement. In his first habeas action, the district court ordered a bond hearing within fourteen days to determine whether the changed circumstances justified revoking his parole.

An Immigration Judge subsequently denied bond because of his pending state criminal case. Castro Valdez filed a second petition under 28 U.S.C. § 2241, challenging that determination and requesting immediate release without first appealing to the Board of Immigration Appeals (BIA).

LAW

According to the supplied text, § 2241 does not expressly require administrative exhaustion, but courts impose exhaustion as a prudential requirement. ...

November 03, 2026
Jury Found Prudential to be the Victim of Fraud

Insured’s Ordered to Pay Insurer for Fraud by the Insureds

Post 4573

Posted on November 3, 2026 by Barry Zalma

In The Prudential Insurance Company Of America v. Carol Gardina and George Gardina, No. 6:23-cv-1125-JSS-DCI, United States District Court, M.D. Florida, Orlando Division (October 22, 2026).

THE JURY TRIAL AND VERDICT

Plaintiff sued Defendants for numerous causes of action stemming from its allegations that Defendants fraudulently collected benefits under their long-term care insurance policies. Plaintiff's case proceeded to a nine-day jury trial, after which the jury found Defendants liable for fraudulent misrepresentation, fraudulent concealment, and civil conspiracy.

The jury also found Defendant Carol Gardina liable to Plaintiff for $1,930,129 in compensatory damages and Defendant George Gardina liable to Plaintiff for $12,496 in compensatory damages and $20 in punitive damages. Thereafter, the court entered judgment in Plaintiff's favor and awarded Plaintiff $1,930,129 in compensatory damages from...

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November 02, 2026
Zalma’s Insurance Fraud Letter – November 1, 2026

ZIFL – Volume 30, Issue 21

Posted on November 2, 2026 by Barry Zalma

Subscribe to ZIFL Here https://visitor.r20.constantcontact.com/manage/optin?v=001Gb86hroKqEYVdo-PWnMUkcitKvwMc3HNWiyrn6jw8ERzpnmgU_oNjTrm1U1YGZ7_ay4AZ7_mCLQBKsXokYWFyD_Xo_zMFYUMovVTCgTAs7liC1eR4LsDBrk2zBNDMBPp7Bq0VeAA-SNvk6xgrgl8dNR0BjCMTm_gE7bAycDEHwRXFAoyVjSABkXPPaG2Jb3SEvkeZXRXPDs%3D

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 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/

DOJ, ATF, Law Enforcement Partners Conclude Operation Show Me Justice

435 Dangerous Offenders Arrested, 166 Illegal Firearms Seized, 81 Kg Illicit Drugs off the streets in St. Louis

The Department of Justice, BATF, U.S. Marshals Service (USMS), US Attorney Missouri announced the ...

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