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State insurance fraud unit alleges record-breaking scheme in mid-Michigan

Ohio Department of Insurance
Michigan's Department of Insurance and Financial Services says it's chasing its largest ever insurance fraud case.

The state insurance fraud unit said Monday that it uncovered a $3 million fraud scheme involving more than a dozen people in mid-Michigan.

The Michigan Department of Insurance and Financial Services confirmed exclusively to WCMU that the case was the largest alleged fraud scheme it’s ever pursued, both by dollar amount and by number of defendants.

The department said 14 people submitted claims to the insurance company Aflac saying they were treated at a chiropractic clinic in Ogemaw -- but the treatments never happened.

Aflac reported the suspected fraud to the state insurance department. Now, a joint investigation between the state and the local sheriff’s office has resulted in a felony fraud charge against each of the 14 defendants. Two also face felony charges for identity theft.

The state insurance department said defrauding insurance companies makes getting coverage more expensive for everyone.