Insurance Fraud Cases: Most Bizarre Schemes Ever Caught
Author: Ian C. Langtree - Writer/Editor for Disabled World (DW)
Published: 2011/03/27 - Updated: 2026/01/25
Publication Type: Informative
Category Topic: Insurance - Related Publications
Page Content: Synopsis - Introduction - Main - Insights, Updates
Synopsis: This report examines documented insurance fraud cases that demonstrate the financial impact of fraudulent claims on policyholders and insurers. Drawing from Coalition Against Insurance Fraud records and Insurance Information Institute data showing property and casualty fraud costs Americans $30 billion annually, the article provides real-world examples of failed fraud attempts involving workers' compensation, business liability, and homeowners insurance schemes. The information proves valuable for individuals with disabilities and others who rely on legitimate insurance coverage, as it highlights how fraud drives up premiums and creates skepticism that can complicate valid claims processing for those who genuinely need benefits - Disabled World (DW).
Introduction
With insurance fraud cases on the rise as people struggle through a tough economy, Life Quotes, Inc. and the Coalition Against Insurance Fraud reveal the dumbest insurance fraud cases. Desperation, greed, and the lack of common sense, are possible reasons insurance fraudsters try to make a fast buck at the expense of others.
Main Content
Insurance fraud is a serious crime that costs insurance companies and policyholders alike. In fact, according to the latest estimates by the Insurance Information Institute (III), property and casualty fraud alone costs policyholders $30 billion a year. But some of the most egregious insurance fraud cases that pass through the desk of anti-insurance fraud groups such as the Coalition Against Insurance Fraud can be downright ridiculous.
Here's a list of some of the most memorable:
A correction officer and native of Naugatuck, Conn. was defrauding his place of business by fraudulently collecting $5,000 in workers compensation, claiming he was injured on the job. That was until he showed up on TV in drag running a 40-yard dash trying to win tickets to a Hannah Montana concert. He had almost got away with it, until a photograph of him running in drag to win concert tickets showed up in the local paper.
Most believe this type of behavior is nothing more than an urban legend... but think again. Carla Patterson, a woman from Virginia, allegedly found a rodent in her soup while having dinner at Cracker Barrel restaurant. Naturally, she demanded the restaurant give her a $500,000 business liability insurance payout for her emotional trauma. Following an autopsy of the renegade rodent, it was discovered the mouse did not have soup in its lungs, so it did not perish from drowning in Patterson's vegetable soup. Patterson was charged with insurance fraud and spent a year in jail.
A couple in Massachusetts, Ronald, and Mary Evano, took to glass eating to scam grocers, restaurants, bars, and hotels out of insurance money. In almost every instance, the establishments involved in the case, simply paid up to avoid a lawsuit. When it was all said and done, the duo collected nearly $200,000 in fraudulent claims using bogus identification and social security cards. While Ronald was incarcerated in 2006 for the scam, Mary was on the lam until recently. She was finally arrested in 2010 and charged with insurance fraud.
Loose lips do indeed sink ships... Just ask Michael Paul Schook, a Suffield, Conn. ex-con who decided to evade his mounting debt and a home that was going into foreclosure by burning it to the ground. To collect $250,000 in homeowners insurance money, Schook left a fat-filled pan on the stove before he left the house for an outing with his family. The house burned down, but unfortunately, Schook was so impressed by his brilliance, he told all the locals about his plan to burn down his house. Even his children told schoolmates of the deed. In no time, school officials called the authorities and Schook was charged with insurance fraud and spent seven years in prison for the staged fire.
Insights, Analysis, and Developments
Editorial Note: While these cases might seem almost comical in their execution, they underscore a troubling reality that affects everyone who pays insurance premiums. Each fraudulent claim doesn't just represent a criminal act - it shifts costs onto honest policyholders and creates an environment of suspicion that makes it harder for people with legitimate injuries, disabilities, or losses to receive the support they deserve. The documented annual cost of $30 billion in fraud translates directly to higher premiums for families already struggling with medical expenses, disability-related costs, and everyday living expenses. Understanding how fraud operates and why it fails doesn't just satisfy curiosity; it reinforces why protecting the integrity of insurance systems matters for those who depend on them most.Claude is AI and can make mistakes. Please double-check responses - Disabled World (DW).
Author Credentials: Ian is the founder and Editor-in-Chief of Disabled World, a leading resource for news and information on disability issues. With a global perspective shaped by years of travel and lived experience, Ian is a committed proponent of the Social Model of Disability-a transformative framework developed by disabled activists in the 1970s that emphasizes dismantling societal barriers rather than focusing solely on individual impairments. His work reflects a deep commitment to disability rights, accessibility, and social inclusion. To learn more about Ian's background, expertise, and accomplishments, visit his full biography.