Fla. Disability Applicant Lied, Charged With Fraud
A man who allegedly lied on his application for disability income insurance and then filed a claim one week after getting the policy is facing felony charges of application fraud, first-degree grand theft and first-degree insurance fraud.
Bruce Sutherland, 43, was arrested Friday on the charges following an investigation by the Department of Financial Services, Division of Insurance Fraud. He has a real estate license but claimed he was unable to work due to panic attacks. If convicted on the charges, he potentially faces up to 65 years in prison.
“Fraud drives up the cost of insurance for every Floridian and makes it harder for families to get the coverage they need,” Florida’s Chief Financial Officer Tom Gallagher, who oversees the department said.
The investigation began after the Illinois Mutual Life Insurance Company forwarded information that indicated Sutherland misrepresented information about his occupation, income, and medical history on an application for disability income insurance.
Department detectives said medical and hospital records confirmed that Sutherland provided false information regarding his medical history, and documents from the Social Security Administration indicated he provided false salary information as well.
Based on his application, Sutherland was issued a Disability Income Policy that provided a monthly disability benefit of $3,000 until he turned 65. Sutherland’s maximum benefit for disability would have been approximately $828,000. The claim ultimately was denied.
- Beyond the Claim: How Social Canvassing is Transforming Insurance Fraud Detection
- EVs Head for Junkyard as Mechanic Shortage Inflates Repair Costs
- DraftKings Sued Over ‘Risk-Free’ Bets That Were Anything But
- California Sees Two More Property Insurers Withdraw From Market
- California Sees Two More Property Insurers Withdraw From Market
- California Chiropractor Sentenced to 54 Years for $150M Workers’ Comp Scheme
- Report: Vehicle Complexity, Labor ‘Reshaping’ Auto Insurance and Collision Repair
- Poll: Consumers OK with AI in P/C Insurance, but Not So Much for Claims and Underwriting