Insurance Fraud
Insurance Fraud is becoming one of the top forms of fraud in America. Martin Frankel owned several mansions, luxury cars, and diamonds. He lived a life of complete luxury. A life of luxury that was paid for with money stolen through insurance fraud. Martin Frankel is one of the major contributors to insurance fraud. He constructed a scheme to embezzle over 200 million dollars from insurance companies in several states across the U.S. He began his first minor case of insurance fraud in 1986 and was not convicted until 2002 for insurance fraud, racketeering, and money laundering. Throughout his "career" he learned new ways to embezzle money and began to master the art of insurance fraud.
Insurance fraud cost Americans billions of dollars every year as higher premium. It is viewed as mostly as a white-collar crime but it can come in many different forms. People who usually commit these kinds of frauds are motivated by greed for necessity or seeking wealth and luxury. This may have been the case with Martin Frankel as stated by the prosecutors "he was motivated by greed, sexual desire and a lust for the high life: a mansion in Greenwich, fancy cars, diamonds the size of nickels, and several girlfriends".
In 1986 convince a businessman named Douglas Maxwell to join him in etablishing the Frankel Fund. The Frankel Fund was an investment partnership in which the limited partners had to invest at least $50,000 each. In 1991 the Frankel Fund failed and the Securities and Exchange Commission banned him from dealing with securities business for life. After that he using false names he set up the Creative Partners Fund LP. This fund was another scam ...