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1 MIN READ

Sputter, Sputter, Crash

January 5, 2013
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Copyright held by The John Cooke Fraud Report. Reprint rights are granted with attribution to The John Cooke Fraud Report with a link to this website.

 

The Not Smart Pilot In August of 1998, Paul Franklin Ostrove of Hermosa Beach, California, ran out of gas. Unfortunately for Ostrove and his three passengers, it happened when they were in an aircraft high above Los Angeles. Luckily, when the airplane crash landed at a Junior High School, nobody was killed, but two of the passengers suffered serious injuries in the mishap.

Avembo Insurance paid out more than $250,000 on the claim. There were the injured passengers, the destroyed aircraft and the damaged power lines and poles. During the course of the investigation, investigators learned that Ostrove did not meet FAA pilot license requirements at the time of the crash. A subsequent FAA investigation led to the revocation of his polot’s license. The insurance policy on the aircraft specifically indicated that coverage was dependent upon all pilots meeting FAA certification requirements. According to Department of Insurance Fraud Investigators, Ostrove submitted fraudulent documents under penalty of perjury to protect his pilot’s certificate and gain coverage under the insurance policy.

If convicted, Ostrove faces up to five years in jail and up to $50,000 in fines.

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