Not Proper To Present False Evidence to a District Judge
Posted on August 18, 2026 by Barry Zalma
Post 5427
Lie to a Judge to Avoid a Fine Can Find You in Jail
In United States Of America v. Gary Rains, Criminal No. 1:26po25, United States District Court, W.D. Virginia, Abingdon Division (August 14, 2026) Gary Rains, (“Rains”), appeared before the court for an initial appearance on a petty offense violation on April 1, 2026.
At that time, Rains pleaded guilty to a violation of 36 C.F.R. § 4.2(b), incorporating Kentucky Revised Statute § 304.99-060, for having no vehicle insurance at the time of a traffic stop on December 21, 2025.
The USDC convicted Rains of the offense and imposed a fine of $500.00 and a mandatory special assessment of $10.00. Rains moved to Vacate Judgment.
In his Motion, Rains states that he now has found his insurance card showing that he did, in fact, have insurance coverage on the date the violation notice was issued. In support of his Motion, Rains attached a State Farm Mutual Automobile Insurance Company, insurance card.
Brooks provided Ranger Shepherd information showing that Rains had automobile insurance on a 2004 Toyota Prerunner with an inception date of August 29, 2025. However, Brooks provided further information that this insurance was subsequently terminated on November 27, 2025.
Given Rains’s action of purchasing insurance on the same vehicle with a different insurance company, which would overlap the State Farm policy by approximately two months, the court was unable to find credible Rains’s claim that he had insurance with State Farm on the date of the violation.
Based on Rains’s knowing and voluntary guilty plea, the information provided by State Farm representative Brooks that Rains’s coverage was terminated on November 27, 2025.
It was ORDERED that Rains’s Motion to Vacate Judgment, was DENIED.
ZALMA OPINION
This is not a major case. That it was reported at all was amazing. To avoid a $500.00 fine Mr. Raines created false insurance records to set aside the $500 fine to which he had pleaded guilty. What he did was attempt a fraud on the court. That attempt was a criminal act and should have been referred to the DOJ. States require people to have automobile insurance to operate on the roads. Raines failed to do so, was cited, convicted and fined. He then created false documents to reverse the judgment and with false documents. The judge recognized the fraud and denied his motion.
(c) 2026 Barry Zalma & ClaimSchool, Inc.
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The Largest Residential Burglary of All Time
Post 5407
Fraud & the Fear of Bad Faith Suits
Posted on July 22, 2026 by Barry Zalma
See the full video at https://lnkd.in/gWQQEySW and at https://lnkd.in/gyhdK6wv
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.
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.
After ...
Chutzpah is not Enough
Post 5397
Posted on July 20, 2026 by Barry Zalma
See the video and at https://lnkd.in/gNUs2XzT and at https://lnkd.in/g2MawyzX
Magistrate Issues a Search Warrant if there is a Fair Probability that Contraband or Evidence of a Crime will be Found in a Particular Place.
In United States Of America v. Frank Suess, et al., CRIMINAL No. 3:24-308, United States District Court, M.D. Pennsylvania (July 16, 2026) a federal grand jury indicted Frank Suess, Melissa Driscoll, and others in a 55-count health care fraud and anti-kickback prosecution arising from an alleged scheme involving medically unnecessary prescription “foot baths.”
As part of the investigation, the FBI obtained an August 19, 2022 warrant to search Driscoll’s Sterling Pharmacy Yahoo email account for emails from January 1, 2018 through December 31, 2020. Driscoll moved to suppress the resulting evidence, arguing that the warrant lacked probable cause, was overbroad, and rested on material misstatements and omissions.
LAW:
The ...
Fraud Shouldn’t Pay
Post 5396
See the video and at https://rumble.com/v7ctgmq-the-great-jewel-theft.html at https://youtu.be/aRbQ2sJfGwA
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.
One month after the policy was ...
Zalma’s Insurance Fraud Letter – August 15, 2026
Posted on August 17, 2026 by Barry Zalma
ZIFL Volume 30, Issue 15, Subscribe to ZIFL Here
THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL
Zalma’s Insurance Fraud Letter (ZIFL) continues its 30th year of publication dedicated to those involved in educing 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/
This issue contains the following articles about insurance fraud:
New Charges and Rewards Announced for the Capture and/or Conviction of Senior Leaders of Notorious Mexican Cartel
More than $100 Million Offered for Information Leading to the Arrests and/or Convictions of Eight CJNG Fugitives
Reward some photos below were taken from wanted posters of the eight CJNG fugitives that can be found here
Read the full article and the full issue of ZIFL at ...
Bad Faith Suit Fails After Insurer Declares Policy Void
Posted on August 14, 2026 by Barry Zalma
State Farm Must Try Breach of Contract Claim Only
Post 5424
Breach of Condition is Ground to Deny Claim and Void Policy
In Arutyun Darakchyan v. State Fann General Insurance Company et al., No. 2:25-cv-03880-CAS-AJRx, United States District Court, C.D. California (August 11, 2026) Plaintiff Arutyun Darakchyan sued State Farm General Insurance Company after State Farm denied his homeowners burglary claim for losses allegedly sustained at his Tarzana residence.
Plaintiff reported that burglars entered through a kitchen window while he and his family were away, claimed stolen property totaling more than $83,000, and submitted proof-of-loss materials, inventory lists, photos, alarm records, phone records, and later appeared for an examination under oath.
State Farm assigned the claim to its special investigative unit, questioned the timing and duration of the reported burglary, requested additional documents and records, ...
Declaratory Relief Was Neither Unnecessary Nor Improper Under The Circumstances
Post 5423
Posted on August 13, 2026 by Barry Zalma
In Fox Paine & Company, LLC, et al. v. Twin City Fire Insurance Company et al., S287404, Supreme Court of California (July 27, 2026) Fox Paine & Company, LLC, Saul Fox, and related entities sued excess insurers after a long-running dispute between the Fox and Paine factions generated substantial litigation costs.
FACTS
The issue arises here after a dispute between former colleagues at an investment firm led to lengthy — and expensive — litigation.
Insurance is sometimes procured in a series of layers, with an insured acquiring a primary insurance policy that provides an initial layer of coverage. The insurance tower included a $10 million primary policy followed by four $10 million excess layers.
Plaintiffs allege that:
1. they suffered a loss;
2. the loss is covered by specific policy provisions described in the complaint;
3. they submitted "virtually all of their invoices" to defendants, ...
