Understanding of the statute from a criminal and civil side gained from actual investigative experience and convictions.
An example- The owner of a North Carolina business filed bankruptcy and moved to England. An asset search revealed a $20 million trust in name of the children. A predicating offense was established, mail fraud, lying on an application that had been mailed. The subject stated in a deposition that any monies the family had, came from the business. The bankruptcy was thrown out and RICO charges filed.
Insurers are taking a new route in fighting fraud–filing civil lawsuits under the federal Racketeering Influenced and Corrupt Organizations Act (RICO), which require proving a preponderance of evidence rather than the stricter rules of evidence required in criminal actions and allow for triple damages.
In 1997, Allstate, State Farm, Camden Fire and Accident, and Maryland insurance companies filed hundreds of civil suits alleging false auto claims. In late 1997, a federal court in Los Angeles awarded almost $11 million to Allstate and State Farm, who brought a suit against 16 people, including lawyers and chiropractors.
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