ZIFL Volume 30, Issue 17
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THE SOURCE FOR THE INSURANCE FRAUD PROFESSIONAL
Zalma’s Insurance Fraud Letter (ZIFL) continues its 30th year of publication dedicated to those involved in educing 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:
Bad Faith Suit Fails
State Farm Must Try Breach of Contract Claim Only
Breach of Condition is Ground to Deny Claim and Void Policy
In Arutyun Darakchyan v. State Fann General Insurance Company et al., No. 2:25-cv-03880-CAS-AJRx, United States District Court, C.D. California (August 11, 2026) Plaintiff Arutyun Darakchyan sued State Farm General Insurance Company after State Farm denied his homeowners burglary claim for losses allegedly sustained at his Tarzana residence.
Read the rest of the article and the full issue of ZIFL here.
AI-Enabled Fraud Tops List Of Emerging Claim Severity Risks, Survey Finds
AI-enabled fraud and data authenticity is the factor most likely to increase claim severity over the next three to five years, according to nearly a third, or 32%, of attendees surveyed at the 2026 RIMS conference by CorVel.
Read the rest of the article and the full issue of ZIFL here.
Department of Justice Announces Launch of National Fraud Detection Center
NFDC Opens with Widespread Collaboration with Inspectors General and Law Enforcement Agencies
Today, August 26, 2026, the U.S. Department of Justice announced the launch of the National Fraud Detection Center (NFDC), a prosecutor-led, multi-agency team designed to investigate the most harmful actors defrauding federal government programs, including illicit actors overseas and those operating fraud schemes across federal programs.
Read the rest of the article and the full issue of ZIFL here.
Health Insurance Fraud Convictions
Justice Department’s Fraud Division Announces Unprecedented Fraud Enforcement Actions
Press Release: Thursday, July 30, 2026
VP Vance’s Anti-Fraud Efforts are Going Strong: On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division).
Read the rest of the article and the full issue of ZIFL here.
A 23rd Person Has Been Sentenced To Prison for the $250 Million Feeding Our Future Scandal.
Abdinasir Mahamed Abshir, 34, of Lakeville, Minnesota, was sentenced to 78 months in prison for his role in a $250 million fraud scheme that exploited
Read the rest of the article and the full issue of ZIFL here.
Outstanding Refugee’ Award Winner Charged With Medicaid Fraud
Salman Ahmed Elmi, a Somali refugee who received Minnesota’s 2021 Outstanding Refugee Award for Entrepreneurship, has been charged with eight felonies tied to the operation of Reva Health.
Read the rest of the article and the full issue of ZIFL here.
Phantom Pets, Real Fraud
On August 21, 2028 the City of London Police reported that it had arrested a man who fraudulently claimed more than £31,000 from multiple insurers by repeatedly reporting dogs as dead has been convicted following an investigation by the City of London Police’s Insurance Fraud Enforcement Department (IFED).
Robert Daniel Cretu, 40 from Liverpool was found guilty of fraud by 30 separate fraudulent pet insurance claims submitted to a number of insurers.
Read the rest of the article and the full issue of ZIFL here.
Other Than Health Insurance Fraud Cases
Mississippi Man Pleads Guilty to Evading $2M in Taxes
Eric Brian Rosenberg, a Mississippi man, pleaded guilty August 19, 2026 to evading the payment of more than $2 million in federal income taxes.
Read the rest of the article and the full issue of ZIFL here.
Auto Insurance Fraud Conviction Stands
Habeas Relief from an Insurance Fraud Conviction Based on an Incorrect Factual Determination Unavailable
In Bryce A. Nickelson v. Secretary, Department Of Corrections, No. 8:23-cv-1081-KKM-SPF, United States District Court, M.D. Florida, Tampa Division (August 17, 2026) Bryce Nickelson, a Florida prisoner, was convicted by a state jury of making a false and fraudulent insurance claim and sentenced to 92.55 months in prison.
Read the rest of the article and the full issue of ZIFL here.
Department of Justice Announces Launch of National Fraud Detection Center
NFDC Opens with Widespread Collaboration with Inspectors General and Law Enforcement Agencies
Monday, August 24, 2026 a Press Release from the Office of Public Affairs
Read the rest of the article and the full issue of ZIFL here.
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.