Earlier this month, four Los Angeles-area residents were arrested for an insurance fraud scam after filing claims for damage to their vehicles caused by fake bear attacks in Lake Arrowhead, California. However, there was no bear, and the wild perpetrator was actually a human in a bear costume. A warrant has been issued for an additional suspect whom the authorities have been unable to locate.
The insurance companies paid the suspects over $141,000 before investigating the suspected fraud and discovering the alleged bear was a person. The insurance scam is being prosecuted by the San Bernardino County District Attorney’s Office. It’s reportedly being reviewed to determine whether the suspects will be criminally charged. Let’s talk about fraud crimes in California and the paws-ible outcome for these creative culprits.
What Happened Fur Real: The Insurance Fraud Scheme
According to a press release from the California Department of Insurance, the accused came together in an elaborate scheme to falsely claim bear attacks had damaged their vehicles. They filed insurance claims describing plausible scenarios in which bears had allegedly caused extensive damage to their luxury cars, including a Rolls Royce Ghost and two Mercedes Benz. They provided accounts of interior damage and scratch marks with video footage of the incidents to substantiate their claims and secure payouts from their different insurance companies.
The insurance companies found several inconsistencies in their claims and suspected fraud. California’s insurance department got involved with the help of the Glendale Police Department to launch Operation Bear Claw. They also retained wildlife experts from the California Department of Fish and Wildlife to undergo further scrutiny of the video. These experts confirmed the "bear" was a human wearing a bear suit. After securing search warrants, investigators found a bear costume while conducting searches of the suspects’ homes.
Grizzly Charges: Conspiracy and Insurance Fraud
If the district attorney decides to prosecute the suspects, they’ll likely be charged with conspiracy to commit insurance fraud. Conspiracy is when two or more people agree to commit a crime and then perform an act to further their agreement. Insurance fraud occurs when someone knowingly lies to receive benefits they’re not entitled to. In California, insurance fraud combines the state’s criminal laws with its insurance code to prevent and punish false claims made for monetary gain.
If the prosecutors move forward with these charges, they must prove the following:
- At least two of the defendants had an agreement to defraud the insurance companies
- Each defendant intended to be part of the agreement and to commit fraud
- At least one of the defendants took an overt act to further their agreement
An overt act can be anything, even something small if it helps the agreement move forward. The act must be made within the state and occur after the agreement but before the completion of the crime.
Additionally, insurance fraud cases require prosecutors to establish proof of the defendant’s intent to defraud. While finding a bear costume with metal claws perfect for scratching cars serves as compelling evidence, everyone has the right to be tried by a jury of their peers before being found guilty. However, some defendants may be open to reaching a plea deal in light of the evidence.
Because the defendants made insurance claims for more than $950, if the case moves forward, they’ll likely be charged with felony insurance fraud. If found guilty, they could be imprisoned for up to five years. They could also be ordered to pay a fine of $50,000 or double the amount of the insurance payouts they received.
Related Resources:
- What Kinds of Damages May I Claim for Car Accident Injuries? (FindLaw's Learn About The Law)
- State Insurance Fraud Laws (FindLaw's Learn About The Law)
- It's Ladies Night (In Court) for the Fresno Grizzlies (FindLaw's Legally Weird)
