Strom Law Blog

Did you have any idea that the average American household pays $1,030 per year in out-of-pocket costs as a result of insurance fraud? As reported by the S.C. Attorney General’s Insurance Fraud division, if insurance fraud were a business, it would be a Fortune 500 company!

A new report issued by the South Carolina Attorney General’s Insurance Fraud Division shows a whopping 44% increase in insurance fraud convictions in 2008, confirming 135 convictions for insurance fraud in 2008, a jump from 94 convictions in 2007. The number of complaints rose from 712 in 2007 to 815 complaints in 2008.

The breakdown of the claims filed in 2008 was:

Automobile claims 57%
Personal/Commercial Property 12%
Worker’s Compensation 11%
Health/Medical 11%
Disability 4%
Life Insurance 3%
Premiums 2%
Other 1%

Interested in what the Department is seeing?

Seven of the most common types of insurance fraud are:

• Underreporting the number of miles you drive on your auto policy.
• Failing to report an accurate medical history when applying for health insurance.
• Faking or exaggerating injuries to avoid work and draw workers’ compensation benefits.
• Falsifying or overstating an injury sustained in a car accident — or even faking the accident — to achieve a large settlement or award.
• Staging an automobile accident which results in an inflated injury claim.
• Drawing accident and health insurance benefits because of exaggerated or even fabricated injuries or illness.
• Exaggerating the amount and value of items stolen from a home or business.

In an attempt to cut down on fraud, South Carolina has a mandatory reporting act that states, “any person, insurer or authorized agency having reason to believe that another has made a false statement or misrepresentation or has knowledge of a suspected false statement or misrepresentation shall, for purpose of reporting and investigation, notify the Insurance Fraud Division of the Office of the Attorney General of the knowledge or belief and provide any additional information within his possession relative thereto”.

A hotline has been established to report allegations of fraud: 1-888-95-FRAUD

By some estimates, the average American household has over 8,000 in credit card debt. In the midst of a continued recession many of us are dealing with job loss, high monthly bills, and we are all looking for ways to make our money go farther.

In comes the wolf in sheep’s clothing, a debt settlement solution specialist. The advertisements claim they can provide you with financial freedom from your high interest credit card bills, help you get out of debt by striking a settlement with your creditors, and keep your phone from ringing day and night with calls from creditors.

While we wish for an easy and honest solution, there is no federal regulation of debt counseling services and many states do not have any specific regulations that govern debt counseling, creating a potential for hardworking people to lose their money to fees, yet never get out of debt. In fact, last month, the New York Attorney General accused Nationwide Asset Services and Credit Solutions of American of charging high fees, placing its clients further in debt, and failing to provide any debt relief as promised.

With offers to get you out of debt coming in everyday, who do you turn to when you need help?

Here are some suggestions:

• Be leery of any company who advertises on television or radio, calls you on the phone, or sends you spam emails asking for financial information.
• Look for an agency that is a member of the National Foundation of Credit Counseling (NFCC), a 50-year-old organization with strict accreditation guidelines.
• Don’t give your credit card or bank account number to any agency over the phone.
• Don’t believe anyone who says that they can wipe out your debt.
• Do not trust anyone who charges you high fees to help you get out of debt.
• Insist on getting all terms, conditions, and payments up front and in writing before agreeing to use a specific agency.
• Place your name on the do not call list to cut down on the number of solicitations that you receive over the phone.
• Check with your local better business bureau to see if any complaints have been made against the company offering assistance.
• If you have already been a victim, contact an attorney who can help you protect your rights.

Strom Law Firm is a personal injury and criminal defense law firm centrally located in Columbia, South Carolina. Our firm proudly handles personal injury, criminal defense, defective products, class actions, pharmaceutical liability, toxic torts, medical malpractice, nursing home neglect, workers compensation, social security, veteran’s benefits, qui tam, predatory lending, tax investigations, business litigation, and wills and estates. Our lawyers proudly edit the Columbia, South Carolina Injury Board as well as the Strom Law Blog as a pro bono effort to provide the public valuable information. Our lawyers are licensed in: South Carolina, New York, Georgia, Florida, and the District of Columbia.

Corroded Air Conditioner Coils Damaged by Defective Chinese Drywall

Homeowners with Chinese manufactured drywall are now complaining of corrosion of copper and other metals, a noxious odor, and health problems.

The Florida Department of Health has launched a site dedicated to the Chinese drywall issue and released the following five signs that may indicate the presence of Chinese drywall in your home:

1. There is presence of sulfur-like or other unusual odors
2. Confirmed presence of Chinese manufactured drywall in the home
3. Observed copper corrosion, indicated by black, sooty coating of un-insulated copper pipe leading to the air handling unit present in the garage or mechanical closet of home
4. Documented failure of air conditioner evaporator coil (located inside the air handling unit)
5. Confirmation by an outside expert or professional for the presence of premature copper corrosion on un-insulated copper wires and/or air conditioner evaporator coils (inside the air handling unit).

In addition, exposure to Chinese Drywall has also been tied to health complaints including, but not limited to, breathing and sinus problems, chest pain, physical ailments and symptoms including coughing, irritated eyes, sneezing, sinus problems, sore throat, asthma, difficulty breathing, runny nose, bloody nose, fatigue, headaches, dizziness and nausea. To date there is not enough data to make a determination.

The first piece of federal legislation related to defective Chinese drywall has been passed by the U.S. House of Representatives. The Drywall Safety Act of 2009, introduced by Sen. Bill Nelson (D-Fla.) and Sen. Mary Landrieu (D-La.) in March, seeks a recall of Chinese drywall and to ban the import of such materials made in China.

The Senate Committee on Commerce, Science and Transportation’s Subcommittee on Consumer Protection, Product Safety and Insurance has scheduled the hearing for 10:30 a.m. on May 21.

Hundreds of homeowners have already filed Chinese drywall lawsuits against the manufacturers, exporters, suppliers, retailers and builders associated with the defective wall board. The complaints seek compensation for problems caused by the drywall, including the cost of repairs, which may involve replacing every piece of drywall in their newly constructed homes.

The U.S. Judicial Panel on Multidistrict Litigation is scheduled to hear arguments later this month about whether to consolidate all federal lawsuits over Chinese drywall that have been filed in various districts throughout several states before one judge for coordinated handling during pretrial litigation.

Last Tuesday the White House announced that President Obama will nominate long time South Carolina politician Inez Tenenbaum for Chair of the Consumer Product Safety Commission (CPSC).

Tenenbaum is the former South Carolina schools superintendent, serving from 1998 to 2007. She ran for the US Senate in 2004. Tenenbaum has been an advocate for children and families throughout her career.

President Obama stated that a “top priority of [his] administration is to ensure that products the American people depend on are safe.” He is confident that under new leadership, the agency will “achieve high standards of product safety that the American people deserve.”

Obama will also revitalize the CPSC by increasing the budget to $107 million, a 71% increase from the 2007 fiscal year. He will increase the number of commissioners from three to five. The President also announced Tuesday his intent to nominate Robert Alder, a professor of Legal Studies at the University of North Carolina at Chapel Hill’s Kenan-Flager Business school whose research has focused on consumer protection and product liability, for Commissioner when the additional seats are added.

Current Chair of the CPSC, Nancy Nord, was appointed by former President Bush in 2005. Members of Congress and other political figures have asked President Obama to encourage Nord to resign from her position. During Nord’s term as Chair, there have been a record number of recalls after unsafe products were released into the marketplace. Some of these recalled products included toys and cribs that were dangerous to young children. Her current term is set to expire in October of 2012.

“Columbia has long suffered crime rates running 2 and 3 times the national average.” http://tinyurl.com/cez647

http://twitpic.com/1hwy4

Employees at House of Raeford Farms. Photo by Charlotte Observer

Federal authorities have detained 300 alleged illegal immigrants after raiding the House of Raeford Farms’ Greenville, S.C. chicken processing plant. The bust took place during a 9 a.m. shift change Tuesday, according to Assistant U.S. Attorney Kevin McDonald.

Federal prosecutors and immigration agents have been investigating the plant’s hiring practices. McDonald says 12 people have been arrested in past months, and seven have pleaded guilty.

McDonald says a recent review of 825 workers’ immigration paperwork showed false information for more than 775.

Read the rest of this entry »

Diana Levine, Photo by NY Times

Earlier this week, The New York Times prominently featured a front-page article on Diana Levine and her upcoming Supreme Court case surrounding the $6 million the pharmaceutical company Wyeth was ordered to pay her for failing to warn her adequately about the risks of one of its drugs. That award came from a Vermont jury after Levine lost much of her right arm.

In the spring of 2000, suffering from a migraine, Ms. Levine visited a clinic near here for a treatment she had received many times: Demerol for the pain and Wyeth’s drug Phenergan for nausea.

“Nothing wrong with either drug,” Ms. Levine said. “They’re both safe when given the right way.” Read the rest of this entry »