I talked about other car insurance frauds involving fake insurance cards in a previous post.
Penn State police have busted a major car insurance and life insurance scheme involving undocumented aliens.
The scheme went like this:
Since illegal aliens are not allowed by Penn State law to acquire drivers licenses, A-Affordable signed up several undocumented workers with their auto insurance policy. Then, A-Affordable pushed the paperwork through so these aliens could get vehicle registration, tags, and licenses.
But the scam didn't end there. The auto insurance company charged the illegal aliens with all sorts of crazy fees for their insurance quotes. The payees most of the time, didn't even know what they were getting into or what they were paying for.
But since it's illegal in the first place for these guys to even have insurance, the auto insurance policies A-Affordable gave out were worthless as were the car insurance cards and documents they processed.
There's more. In addition to the car insurance fraud, A-Affordable also signed the aliens up with Global Life Insurance policies. The aliens didn't even know they were getting signed up for this stuff. A-Affordable just signed them to it, then paid the monthly premiums (usually around $16) for a few months.
After a few months of receiving premiums, Global Life paid A-Affordable a $200 commission for selling the policies. Global Life never knew the policies were bogus resulting in thousands of dollars of stolen commissions.
The pepetrators face 190 years in prison if convicted and over $300000 in fines.