In a recent case of insurance fraud, Isrrael Millan, III, a contractor from Yuma, Arizona, has been sentenced to 87 months in prison. The sentencing, carried out by United States District Judge Roslyn O. Silver, also requires Millan to make restitution payments of $391,279.45 to the victim insurance companies. Millan’s conviction came after a jury found him guilty of Conspiracy, Wire and Mail Fraud, and Money Laundering. The fraudulent schemes took place between 2018 and 2020, involving staged vehicle accidents and deliberately flooded residences, with Millan submitting fraudulent claims to insurance companies. The investigation was conducted by the Federal Bureau of Investigation, and the prosecution was handled by Assistant U.S. Attorneys Raymond K. Woo and Aron Ketchel. This case serves as a reminder of the consequences faced by those who engage in insurance fraud.
Overview of the case
In a recent case of insurance fraud in Yuma, Arizona, Isrrael Millan, III, a 43-year-old contractor, was sentenced to 87 months in prison by United States District Judge Roslyn O. Silver. The case involved several insurance fraud schemes that took place between 2018 and 2020. Millan was found guilty of Conspiracy, Wire and Mail Fraud, and Money Laundering.
Details of the sentencing
In addition to the prison sentence, Millan was ordered to pay $391,279.45 in restitution to the victim insurance companies. The sentencing took place on a date last week.
Insurance Fraud Schemes
Staging vehicle accidents
One of the insurance fraud schemes perpetrated by Millan involved staging vehicle accidents. He and his associates deliberately crashed vehicles and then submitted fraudulent claims to insurance companies for the damage caused. These accidents were carefully planned and executed to appear as genuine accidents, but they were in fact staged for the purpose of defrauding insurance companies.
Deliberate flooding of residences
Another fraudulent scheme employed by Millan was the deliberate flooding of residences. He would flood properties under his control and then submit fraudulent claims to insurance companies for the resulting water damage. This scheme allowed him to collect insurance proceeds by falsely claiming the damages were the result of natural disasters or accidents.
Claims related to vehicle accidents
Millan and his associates filed fraudulent insurance claims for the staged vehicle accidents. They would exaggerate the extent of the damages, claim for injuries that did not occur, and submit falsified documents to support their claims. These fraudulent claims resulted in financial losses for the insurance companies that had to pay out on the claims.
Claims related to flooding incidents
Similarly, Millan submitted fraudulent claims for the flooding incidents he orchestrated. He would inflate the cost of repairs and replacements, submit false invoices and receipts, and provide misleading information to the insurance companies. These fraudulent claims also caused financial losses for the insurance companies.
Investigation and Prosecution
Involvement of the Federal Bureau of Investigation
The investigation into Millan’s insurance fraud schemes was conducted by the Federal Bureau of Investigation (FBI). The FBI worked diligently to gather evidence, interview witnesses, and build a strong case against Millan and his associates. Their efforts were instrumental in bringing Millan to justice.
Role of Assistant U.S. Attorneys Raymond K. Woo and Aron Ketchel
Assistant U.S. Attorneys Raymond K. Woo and Aron Ketchel played a vital role in the prosecution of Millan. They presented the evidence to the court, argued the case, and ensured that justice was served. Their expertise and dedication were key factors in securing Millan’s conviction.
The case against Isrrael Millan, III was assigned case number CR-20-00713-PHX-ROS.
The release number for this case is 2023-052_Millan.
Amount of restitution ordered
As part of the sentencing, Millan was ordered to pay $391,279.45 in restitution to the victim insurance companies. This restitution is meant to compensate the companies for the losses they incurred as a result of Millan’s fraudulent activities.
Victim insurance companies
The victim insurance companies that suffered financial losses due to Millan’s fraudulent activities were not specifically mentioned in the available information.
Impact of the Fraud
Financial loss suffered by insurance companies
The insurance fraud schemes perpetuated by Millan resulted in significant financial losses for the victim insurance companies. The companies had to pay out on the fraudulent claims, which depleted their resources and negatively impacted their financial stability. These losses had ripple effects throughout the insurance industry and affected the ability of insurance companies to provide coverage and services to their policyholders.
Consequences for the community
Insurance fraud schemes like those perpetrated by Millan have larger consequences for the community at large. When insurance companies suffer financial losses, it affects their ability to provide affordable coverage to individuals and businesses in the community. It may lead to increased insurance premiums or reduced coverage options, which can have a detrimental impact on the community as a whole.
Other Related Cases
Plexus Worldwide, LLC false claims violations
In a separate case, Plexus Worldwide, LLC, an Arizona-based company that markets health and wellness products, agreed to pay $600,000 to resolve alleged false claims violations for mailing packages with underpaid and duplicate postage. This case shows that insurance fraud is not limited to individuals and can also involve businesses.
Mesa woman fraud targeting AHCCCS
Another recent case involved a Mesa woman, Diana Marie Moore, who pleaded guilty to Wire Fraud and Money Laundering. Moore was involved in a fraud targeting AHCCC, which resulted in financial losses for the healthcare program. This case highlights the broader impact of insurance fraud on government-funded programs and the need for strong enforcement measures.
Sentencing and Penalty
Length of prison sentence
Isrrael Millan, III was sentenced to 87 months in prison for his involvement in the insurance fraud schemes. This lengthy prison sentence serves as a deterrent to others who may consider engaging in similar fraudulent activities.
Amount of restitution ordered
Millan was ordered to pay $391,279.45 in restitution to the victim insurance companies as part of his sentence. This restitution is intended to compensate the companies for the losses they suffered as a result of Millan’s fraudulent actions.
Public Affairs contact
For more information on the U.S. Attorney’s Office, District of Arizona, you can contact Diana L. Varela at (602) 514-7743 or firstname.lastname@example.org.
U.S. Attorney’s Office contact
For general inquiries or assistance, you can contact the U.S. Attorney’s Office, District of Arizona, at the following numbers: Phoenix – (602) 514-7500, Tucson – (520) 620-7300, Flagstaff – (928) 556-0833, Yuma – (928) 314-6410.