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Two big insurance companies were held by court for fraud

Sunday, April 8th, 2012

Two life insurance providers were recently charged by the legal authorities of conducting illegitimate issues & deliberately failed to provide benefits of their life insurance to nearly 600 policy holders throughout the south-eastern state. The law suit was filed last year in the district federal court on behalf of the state authorities. The insurance provider was charged with $ 230 million as compensation. The companies that are charged with the law suits include names such as MetLife Inc. & Prudential Financial Inc. The authorities also claimed that these companies also violated the False Claim Act of the State of Minnesota.

As found out the whistleblower law suits were filed in by the  Total Assets Recovery Services which has till date filed several such lawsuits in different states in continental US. The investigation company is a small privately operated group & is based in Auburn Hills, Michigan. Currently a lawyer with the investigative company, Jeffrey Sloman said “the magnitude to which the life insurance fraud is occurring in the United States has touched billions of dollars in recent times.” Jeffrey was formerly a US attorney for the state of Florida. In a comment he was also found saying “that numbers are more attractive nationally.”

After this kind of fraudulent behaviors taking its maximum toll from the common policy holders, the authorities have become a lot strict these days. The Attorney General of Minnesota & the State’s Commerce department has started investigation jointly into these matters. The authorities have come under a lot of discrepancy from the public & now have intensified the scrutiny over the insurance firms. They are now investigating on how the 40 major companies operate & handle the benefits which are not claimed after the death of the individual.

In connection especially to what happened in Minnesota, the MetLife spokeswoman Jessica Ong was found commenting that the Minnesota law suit does not certify any merit. She also said that “the figures enlisted in the complaint depends on some unreliable presumptions or assumptions & also include some overstated amounts by the people.” She folded when asked to discuss the case further. On the other hand Prudential Financial insurance company said it is co-operating with the Minnesota Officials to the maximum extent. Prudential Financial Insurance spokesperson Bob DeFillippo said that “the company is actively working with the Minnesota State authority on their enquiry.”

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