Special Investigations Unit - Fraudulent Injuries

In 2009, Plaintiff alleged he was injured when a medical transport company’s driver negligently moved the vehicle as Plaintiff was exiting. Although Plaintiff alleged to have an independent witness that corroborated Plaintiff’s story, the driver for the medical transport company maintained he did not move the vehicle while Plaintiff was exiting. The Insurer conducted its own investigation, which revealed inconsistencies in the version of events told by Plaintiff and Plaintiff’s “independent” witness, as well as long criminal histories for both. The Insurer also found another witness that corroborated the driver’s testimony that the accident never occurred.  Suspecting fraud, the Insurer retained Smith Freed & Eberhard to investigate Plaintiff’s claim.

After an in-depth and thorough investigation of the circumstances that allegedly caused Plaintiff’s injuries, public records searches and reviewing both Plaintiff’s and his witness’s history of crime and fraud, Smith Freed & Eberhard discovered that Plaintiff had been found guilty in several criminal activities, including a similar workers’ compensation fraud claim.  Smith Freed & Eberhard  also discovered that both Plaintiff and Plaintiff’s “independent” witness were registered sex offenders and had lived at the same residence for 2 months. 

Plaintiff moved to voluntarily dismiss his suit and Smith Freed & Eberhard  sought attorney fees and enhanced prevailing party fees. The court found the evidence—especially the concealed shared residence of Plaintiff and his witness— demonstrated the claim was brought in bad faith and that the Plaintiff knew the claim was meritless. Consequently, the court granted costs and attorney fees, as well as enhanced prevailing party fees. The insurer is pursuing criminal charges.