Happy Law Day
ZIFL – Volume 30, Issue 9 – May 1, 2026
THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL
Post number 5346
See the video at https://rumble.com/v797gio-zalmas-insurance-fraud-letter-may-1-2026.html at https://youtu.be/wh03rbyc-UE
Zalma’s Insurance Fraud Letter (ZIFL) continues its 30th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/ This issue contains the following articles about insurance fraud:
DOJ Creates National Fraud Enforcement Division
Will the Feds Take on Insurance Fraud? Possibly as Part of a National Anti-Fraud Effort
On April 7, 2026, the Acting Attorney General, Todd Blanche, issued a memorandum establishing the Department of Justice National Fraud Enforcement Division (NFED). The memo describes an ambitious, but perhaps redundant, vision for this standalone litigating division: a centralized, coordinated approach to investigating and prosecuting fraud against taxpayer dollars and taxpayer-funded programs such as Medicare and Medicaid which are part of the national insurance fraud efforts.
Read the full article and the full 25 page ZIFL at https://zalma.com/blog/wp-content/uploads/2026/04/ZIFL-05-01-2026.pdf
Insurance Companies Are Convinced That Insurance Fraud Is Growing
According to the Coalition Against Insurance Fraud, insurance companies report that fraud is increasing or remaining steady, underscoring a growing concern within the industry. In response, the Coalition Against Insurance Fraud, a national alliance of over 300 organizations, including insurers, consumer groups, and government agencies, is intensifying its efforts to combat this pervasive issue. Through collaboration, research, and public education, the Coalition aims to protect consumers and reduce the financial impact of fraudulent activities.
Read the full article and the full 25 page ZIFL at https://zalma.com/blog/wp-content/uploads/2026/04/ZIFL-05-01-2026.pdf
Why Insurance Fraud Succeeds and Bad Faith Lawsuits Grow Like Kudzu
About 30 years ago when I was still practicing law, insurers hired MBA’s who were taught that insurers, like manufacturers, should measure their performance by the profits earned in a quarter of a year when insurance is an industry whose profits should be gauged in a quarter of a century.
To reach a quarter of a year profit the MBA’s recommended cutting the expense end of the insurance business by firing their experienced and knowledgeable adjusters and underwriters and replacing them with recent college graduates who had never read an insurance policy nor had they any idea about the reason for fair claims handling.
Read the full article and the full 25 page ZIFL at https://zalma.com/blog/wp-content/uploads/2026/04/ZIFL-05-01-2026.pdf
Federal Grand Jury Charges Southern Poverty Law Center for Wire Fraud, False Statements, and Conspiracy to Commit Money Laundering
Press Release Tuesday, April 21, 2026
Between 2014 and 2023, the SPLC secretly funneled more than $3 million in donated funds to individuals who were associated with various violent extremist groups including the Ku Klux Klan, Aryan Nations, and National Socialist Party of America
A Grand Jury in Montgomery, Alabama, today returned an indictment charging the Southern Poverty Law Center (SPLC) with 11 counts of wire fraud, false statements to a federally insured bank, and conspiracy to commit concealment money laundering. The United States Attorney’s Office for the Middle District of Alabama Northern Division filed two forfeiture actions to recover alleged proceeds of the organization’s fraud scheme. The Federal Bureau of Investigation (FBI) investigated this case with assistance from the Internal Revenue Service Criminal Investigation (IRS-CI).
Read the full article and the full 25 page ZIFL at https://zalma.com/blog/wp-content/uploads/2026/04/ZIFL-05-01-2026.pdf
Florida Nursing Assistant Sentenced to Nine Years in Prison for $11.4M Health Care Fraud Scheme Targeting Medicare Beneficiaries
Christian “Chris” Cruz, 45, of Pompano Beach, Florida, owned and operated a durable medical equipment (DME) supplier based in Florida through which he submitted millions of dollars in false claims to Medicare for medically unnecessary orthotic braces.
Cruz, a Florida nursing assistant was sentenced yesterday to nine years in prison and two years of supervised release for his role in an $11.4 million health care fraud and wire fraud conspiracy in which hundreds of Medicare beneficiaries were sent thousands of orthotic braces they did not need. Cruz was also ordered to pay $3,712,345.70 in restitution and $724,871 in forfeiture.
Read the full article and the full 25 page ZIFL at https://zalma.com/blog/wp-content/uploads/2026/04/ZIFL-05-01-2026.pdf
“Property Investigation Checklists: 16th Edition Uncovering Insurance Fraud,” Now Available
Property Investigation Checklists: Uncovering Insurance Fraud, 16th Edition by Barry Zalma, Esq., CFE, is now available. The 16th Edition provides detailed guidance and practical information on the four primary areas of any investigation of suspicious claims is now available at https://store.legal.thomsonreuters.com/en-us/products/property-investigation-checklists-43526329.
Read the full article and the full 25 page ZIFL at https://zalma.com/blog/wp-content/uploads/2026/04/ZIFL-05-01-2026.pdf
Other Than Health Insurance Fraud Cases
Anti-Fraud Task Force is Working in Los Angeles
The anti-fraud task force led by Vice President JD Vance has suspended 447 hospices and 23 home health agencies suspected of fraud in Los Angeles, with a total fraud estimate of more than $600 million. The number of suspensions is roughly a 539% increase from the 70 reported by Fox News Digital at the beginning of April.
Read the full article and the full 25 page ZIFL at https://zalma.com/blog/wp-content/uploads/2026/04/ZIFL-05-01-2026.pdf
Barry Zalma
Barry Zalma, Inc., 4441 Sepulveda Boulevard, CULVER CITY CA 90230-4847, 310-390-4455.
Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He practiced law for more than 44 years as an insurance coverage and claims handling lawyer and more than 58 years in the insurance business. He is available at http://www.zalma.com and zalma@zalma.com. Go to Zalma’s Insurance Fraud Letter at https://zalma.com/zalmas-insurance-fraud-letter-2/,
Subscribe to Excellence in Claims Handling at https://barryzalma.substack.com/welcome.
Read the full article and the full 25 page ZIFL at https://zalma.com/blog/wp-content/uploads/2026/04/ZIFL-05-01-2026.pdf