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Fraud

900254-00

Ponzi schemes—where clients can find coverage

In response to the fraudulent acts committed by Wall Street profiteer Bernard Madoff, some investment advisors/brokers told my clients who had lost money to file a claim under their homeowners insurance. Isn’t there some other recourse for victims in this type of situation? Would the homeowners policy even cover such a loss?

900361-00

Credit-card fraud

Is there some way to insure a business owner when a stolen credit card is used to purchase merchandise, typically, over the phone or internet? The business owner runs the transaction on a card and it initially clears. Then the business owner ships the product in good faith. Later the credit-card company informs the business owner of the fraudulent use of the card, either voiding or reversing the charge.

900513-00

Misrepresentation when submitting applications on behalf of clients to carriers

If I am aware of losses but do not disclose them to a carrier during the negotiation process or in submitting an application on behalf of a client, am I liable for misrepresentation and potentially insurance fraud?

900514-00

Misrepresentation when a client purposefully takes action to avoid reporting losses to carriers

My client is trying to change ownership of a home to avoid reporting losses. Could I be liable for fraud, misrepresentation, and breach of contract if I don’t report this to the carrier?