Ever watched those videos of people jumping in front of stationary or super-slow-moving cars to claim third-party insurance payments? While such antics are often caught on video, many fraudulent attempts aren’t as visible, leaving insurance companies to pay out more than they should. Unfortunately, this drives up the cost of premiums for innocent policyholders.
Despite the risks, some people can’t resist the temptation of making a quick buck from an insurance policy that might not have paid out otherwise.
When it comes to life insurance, however, money isn’t usually available while you’re alive—prompting some to “tweak” the system by faking their deaths. Unsurprisingly, these plans often end disastrously. From fake deaths to botched schemes and downright bizarre attempts, here are ten insurance fraud attempts that went spectacularly wrong.
The Man Who Faked His Death Without Telling His Wife
If you’re going to fake your death, involving a trusted accomplice is key. In 2018, a Chinese man from Xinhua learned this the hard way. In an attempt to escape a $14,000 gambling debt, he staged a fatal accident by driving a borrowed car into a river and disappearing.
However, he didn’t share his plan with his wife. Grieving the supposed loss of her husband, she tragically drowned herself and their two children in a pond so they could “be together” in the afterlife. The man resurfaced days later, surrendering to the police after failing to cash in on his $100,000 accident insurance policy.
Joyce Small: The Tenant Life Insurance Scam
Insurance fraud often involves faking deaths or harming others, but Joyce Small had a different idea. As a landlady, she realised she could profit by taking out life insurance policies on tenants who seemed unwell. Using stolen information from tenancy applications, she took out 33 policies on 29 individuals.
After collecting $211,000 from the deaths of five tenants, her scheme unravelled, cutting short her plans to net nearly $2 million. Authorities caught up with her, ending her fraudulent ventures.
Adam Haddad: The Sledgehammer Scammer
Auto-repair shops often have a reputation for upselling unnecessary repairs, but Adam Haddad took it to another level. As the owner of two repair shops in Middlesex, Massachusetts, Haddad intentionally damaged customer vehicles with a sledgehammer to inflate repair costs.
Unfortunately for him, his own security cameras captured the incriminating acts, which included failing to fix some of the damage he caused. Convicted of fraud, he was sentenced to three years in prison and ordered to pay $170,000 in restitution.
The Moldovan Saga: Faking Death Abroad
When Igor Vorotinov “died” in Moldova in 2011, his family wasted no time transferring $1.5 million of his $2 million insurance payout into overseas accounts. However, photos surfaced of Igor very much alive, raising suspicions among federal investigators.
Arrested in Minnesota in 2015, Igor was sentenced to 41 months in prison and ordered to repay the money. His attempt to fake his death turned into an international scandal.
Clayton and Molly Daniels: DNA Doesn’t Lie
In 2005, Clayton Daniels and his wife Molly decided to fake his death for a $110,000 life insurance payout. To stage the scene, they exhumed an 81-year-old woman’s body, dressed it in Clayton’s clothes, and set it in a burned-out car.
However, investigators quickly uncovered the fraud when DNA testing revealed the charred remains weren’t Clayton’s. The couple’s scheme earned them prison sentences and a place on this list of failed insurance scams.
Nicholas Di Puma: The Fire That Couldn’t Be Explained
In 2008, Nicholas Di Puma attempted to claim insurance for a house fire and his convertible by concocting a ludicrous story. According to Di Puma, four pans caught fire while he was cooking, and attempts to extinguish the blaze led to an escalating series of events, including a pan landing in his car’s backseat.
The judge wasn’t convinced, sentencing him to pay $37,997 in restitution and prison time for arson. His tale read more like a slapstick comedy than a legitimate explanation.
The Mortician Who Buried a Ghost
Jean Crump, a mortician in Long Beach, orchestrated an elaborate scheme in 2013. She invented a fictitious man named Jim Davis, staged a funeral complete with fake mourners, and sent a casket filled with a mannequin and cow parts to a crematorium.
Crump successfully claimed $315,000 in funeral and life insurance payouts before authorities uncovered the fraud. She was sentenced to 18 months in prison.
The “Slip and Fall” Queen
Isabel Parker, a 72-year-old from Philadelphia, earned $500,000 from fraudulent slip-and-fall claims between 1993 and 2000. She staged these incidents in supermarkets, using aliases to avoid suspicion.
Though her scheme was relatively simple, it ultimately cost businesses and insurers dearly. Parker’s story serves as a cautionary tale about how even small-scale fraud can have a big impact.
David Player and Michael Weaver: A Costly Limb
Insurance fraud sometimes requires personal sacrifice, but few cases are as extreme as this 2008 incident. David Player and his accomplice convinced Michael Weaver, who had mental health issues, to let them saw off his arm to claim homeowner’s insurance money.
Despite receiving over $600,000, greed led to their downfall. Prosecutors uncovered the gruesome plan, and both Player and Weaver faced prison sentences and restitution orders.
Dead Two Days After Taking Out Life Insurance
Christopher Collins’s 2021 attempt at fraud was as tragic as it was transparent. Just two days after taking out a $250,000 life insurance policy, Collins reported his wife’s murder. While claiming to have been at the gym, evidence revealed no signs of forced entry, and Collins was ultimately convicted of her death in a case that shocked investigators.
When Fraud Goes Too Far
Insurance fraud may seem like a shortcut to easy money, but the consequences are often severe—ranging from financial ruin to prison time and even loss of life. These stories highlight the sheer audacity of some individuals and serve as a stark warning against attempting similar schemes.
Do you know of any other jaw-dropping insurance fraud stories? Share them with us in the comments below! And if you enjoyed this list, don’t forget to explore more fascinating stories on our website.