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NYC Premium Diversion Lawyers
Premium Diversion: Understanding Insurance Fraud and Its Consequences
The Insurance Promise
The entire system of insurance – for life, homeowners, car, health care, and many other types of policies – relies on a key promise between issuer and consumer: the amount of money paid to the insurer as premiums ensures that they will receive the coverage they are entitled to should they need it.
Insurance companies are free to invest the premiums they receive in a number of financial vehicles – although these are regulated by state and federal authorities – in order to earn profits. However, the insurance company is always responsible for paying out all the legitimate claims that are made on its policies.
Premium Diversion Schemes
Consumers typically buy policies through insurance agents. Whether at a storefront, over the phone, or online, consumers expect that the agent will submit their premium in exchange for a policy.
In some cases, however, unscrupulous market participants sell the promise of insurance policies to consumers but keep the premium income for themselves. This is known as premium diversion.
If you are looking for a lawyer that listens, is aggressive where needed, and holds his word above all else, Todd is the best pick. I had hired multiple attorneys prior to hiring the Spodek Group for a white collar case. The first thing that stood out to me was the cost, as anyone going through the process and dealing with the system, money was tight at that time - especially after hiring and firing multiple lawyers. The cost was not as high as others which was definitely a plus. Todd's intake process was also unlike other attorneys. He took the time to actually listen. He cared. He was trying to put himself in my shoes while I was explaining the situation to him and he really took the time to understand the whole situation. Other lawyers will give you 15 mins and send you a retainer agreement. Not Todd, I think he spent almost two hours with me as I was explaining everything.Not only was he great during the onboarding process, he was supportive and very informative through the entire plea process and eventually sentencing. After hiring him, I asked if I should hire a prison consultant, he told me to save my money as he would do everything they would. He was right and held up to his word. Later on I would hear from others that went with the prison consultants that they were a waste of money - I am glad I listened to Todd!When it came time for sentencing, two days prior to sentencing, the prosecutor tried increasing my proposed prison time by almost double - apparently a normal move. Todd and his team worked with me non-stop through the weekend prior to sentencing to ensure that I was not given additional prison time. Again, he took the time to listen and came up with a strategy to explain the case with great detail.Unfortunately, I did plead guilty as that was my best option. Todd and his whole team wrote up nearly 300 pages of a summary of what happened and why I should not be given prison time. If I breakdown the amount I spent with Todd versus the amount of work that I saw being done, I am shocked I was not charged four times as much. The other benefit was, a lot of criminal defense lawyers were just a single attorney with a paralegal or two. Todd had a team of people that I dealt with (5-7 people that I interacted with), but he was ALWAYS accessible. It would never take him more than an hour to reply unless he was in court.I was sentenced to prison and I was emotionally distraught. Todd and his team did whatever they could even after sentencing to make sure I was alright. He personally stayed in touch with my family to ensure I was doing alright and offered support to them. Most lawyers would consider the job complete at sentencing, not Todd.After prison, Todd still spent time with me to make sure I was on the right track and avoiding any potential risks in the future. He has also been giving advice on how to navigate probation etc and has not been looking at the clock for billing.Although I wish I had never been arrested in the first place, I am glad I had Todd and his team in my corner. Without them I likely would have had to spend a lot more time in prison than I did.Thank you, Todd, and the entire Spodek Law team, for helping turn what was a nightmare into a manageable situation!
I am immensely grateful to the entire team at Spodek Law Group for their unwavering dedication and exceptional expertise throughout my case. From our initial consultation to the final resolution, their professionalism and tireless advocacy made all the difference. Their strategic approach and attention to detail instilled confidence in me every step of the way.Thanks to their hard work and commitment, we achieved a truly favorable outcome that exceeded my expectations. Not only did they navigate the complexities of my case with precision, but they also provided invaluable support and guidance during what was undoubtedly a challenging time. I cannot recommend Spodek Law Group highly enough, especially attorneys Todd Spodek and Claire Banks; they are beacons of excellence in the legal profession.YSP.
Todd, Ralph and Alex are amazing. Helped my husband get from a double digit number with multiple charges to a single digit, by the time I blink he will be out. They very professional and help with all your needs. They dealt with my anxiety and worry very well and they understand that your family member needs to get home as soon as possible.
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence.Thank you team!
I recently had Spodek Law Group represent me for a legal matter in NYC and I am thoroughly impressed with their services.Alex Zhik secured the best possible outcome for my case.It was a seamless journey from the initial consultation to the resolution of my legal matter. From the moment I spoke to Todd about my case, his enthusiasm to help was evident, setting a positive tone for the entire experience. The efficiency and professionalism displayed by the team is commendable.A particularly noteworthy aspect of their service is their user-friendly portal to upload your documents/evidence. This not only simplified the process, but showcases their commitment to streamline the client experience.Lastly, in an industry where legal fees can often be a concern, I found their pricing to be very reasonable, making needing legal assistance feel accessible and stress-free.I am grateful for their support and wouldn't hesitate to turn to them again in the future.
Premium diversion schemes typically take one of two common forms:
Agent/Broker Diversion: An agent – or the broker who serves as a middleman between agent and insurer – takes money from consumers for policies. Instead of submitting the money to an underwriter or insurance company in exchange for a policy, the broker or agent pockets the funds for their own account. This type of scheme typically results in the creation of phony paperwork that leads consumers to believe they are covered when they are not.
Fake Insurance Company: A fake insurance company is set up and collects premiums from unwitting consumers with fraudulent documentation. Typically conducted by agents without licenses, this scheme relies entirely on phony information and the ability to dupe consumers into believing that they have purchased coverage from a hitherto unknown company.
While they are slightly different, both forms of premium diversion create serious problems for the financial and insurance system. By shaking the faith of market participants, premium diversion schemes threaten to destabilize insurance markets. At the same time, individuals’ losses can amount to hundreds of thousands of dollars when someone discovers – after a tragic event – that their insurance did not actually exist.
Legal Consequences
To discourage premium diversion and encourage responsible insurance brokerage, state administration and the federal government have set harsh penalties for these schemes.
New York State Penalties
In New York State, premium diversion is considered a form of grand larceny. Depending on the amount diverted, prison sentences can range up to 25 years, and fines can be in the millions of dollars.
Federal Penalties
There is no specific federal offense for premium diversion, but those involved in these schemes typically are charged with wire fraud, mail fraud, falsifying records, and money laundering.
Once again, the penalties are harsh. Conviction on a single count of wire fraud can lead to a sentence of up to 30 years imprisonment. Fines and restitution at the federal level can also be in the millions of dollars.
Seeking Legal Representation
If you or a loved one is being investigated or has been charged in a premium diversion, you should contact an experienced criminal defense attorney immediately. In particular, knowledge of the ins and outs of insurance regulation is critical for attorneys in premium diversion cases.
A criminal lawyer can help you prepare a strong and smart response to investigators and ensure that your legal rights are protected as the investigation unfolds. If you are charged with a criminal offense, a defense attorney can work with prosecutors to prepare a plea agreement or – if necessary – present a vigorous case on your behalf before a judge and jury.
