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California installed some get-tough-on-fraud laws and one that took effect in 1992 just paid off.
Several insurance companies are cheering the Superior Court jury that convicted Erroll Dale Frazier of 17 felony counts. The jury deliberated for seven days and the paper trail was extensive, but there was no doubt in their minds that what the prosecution was claiming was true: Frazier has bilked several insurance companies out of at least a half million dollars.
One particularly damaging witness was Calvin WIlkerson of San Diego. Originally a co-defendant in the case, Wilkerson pleaded guilty in 1993 and was called to testify against Frazier. Wilkerson told of being an insurance company employee and a capper for Frazier’s operation at the same time.
The businesses in question allegedly performed rehabilitation services under a variety of company names, each of which used the same Culver City mail drop address. The bills were all padded according to the lead prosecutor and in some cases it appeared that the services had never been rendered at all. How can a murder victim be rehabilitated? How can a guy serving time in the state pen receive such services? How can someone unable to speak English go to regular computer training classes?
Frazier had long been a thorn in the side of the insurance industry. A company that didn’t pay quick enough got sued. His theory, it was alleged, is that a company would rather pay than litigate.
The investigation began when American International Group notice a number of evaluations that were almost identical. The reports misspelled the same words and contained the same grammatical errors. The case will end when Frazier dons prison garb. The prosecutor is seeking a prison sentence of eight-to-ten years.
© Copyright 1995 The John Cooke Fraud Report