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Sisters Blew Whistle on Katrina Claims
Associated Press (appears on Yahoo) ^ | August 26, 2006 | Michael Kunzelman

Posted on 08/26/2006 2:40:15 PM PDT by khnyny

Who are the moles? The question was like a parlor game for employees of State Farm Insurance Co. after Hurricane Katrina, one they nervously played during coffee breaks or in the parking lot after work.

Richard "Dickie" Scruggs, a prominent lawyer of tobacco litigation fame, created a stir by announcing in March that two "insiders" were helping him build cases against insurers for denying claims for Hurricane Katrina losses. Their identities remained a mystery until the day in early June when Cori and Kerri Rigsby — employees of a company that contracted with State Farm — told a supervisor they were cooperating with Scruggs.

That startling admission — and their subsequent resignations — ended a risky charade. The Rigsbys say they spent months collecting reams of internal State Farm reports, memos, e-mails and claims records before they gave them to Scruggs and state and federal authorities.

The sisters, who managed teams of State Farm adjusters, say the documents show that the insurer defrauded policyholders by manipulating engineers' reports so that claims could be denied.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Government; News/Current Events; US: Alabama; US: Louisiana; US: Mississippi
KEYWORDS: corporateabuse; corporatefraud; corruption; fraud; goodneighbor; hurricane; insurance; insurancefraud; insurancesucks; katrina; lyingsobs; nola; sisters; statefarm; stupidcompany; yougosisters
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The title should read - sisters blow whistle on insurance company defrauding their customers.

The Rigsby sisters have reams of documentation and evidence, even though they accuse State Farm of shredding thousands of documents to cover the insurance company's misdeeds. Prime Time had an axcellent show covering this story last night with much more detail. Prime Time even interviewed engineers who said their reports were tampered with to show that damage was caused by water and not wind. In most policies, water damage is not covered.

1 posted on 08/26/2006 2:40:17 PM PDT by khnyny
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To: khnyny
Prime Time had an axcellent show

Axcellent? Is that anything like sawyulent green?

2 posted on 08/26/2006 2:41:47 PM PDT by dirtboy (This tagline has been photoshopped)
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To: dirtboy

an excellent, I stand corrected.

In a hurry, gotta go. Have fun.


3 posted on 08/26/2006 2:43:39 PM PDT by khnyny (Never in the field of human conflict was so much owed by so many to so few.- Winston Churchill)
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To: dirtboy
Axcellent? Is that anything like sawyulent green?

LOL!!

4 posted on 08/26/2006 2:45:02 PM PDT by TomServo ("Uh, Donner, party of three please.")
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To: khnyny

these two stole confidential information from their employer, and now they're on the payroll of a trial lawyer. Real ethical gals /sarcasm


5 posted on 08/26/2006 2:45:38 PM PDT by balch3
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To: balch3
AP Headline: Bush uncaring for Katrina victims, allowed shredding of insurance documents to fund Halliburton...

Hmmm and right before the anniversary, too..

6 posted on 08/26/2006 2:49:29 PM PDT by cardinal4 (America, despite the usual suspects, stands firmly with Israel..)
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To: khnyny

Been reading some very disturbing accounts about State Farm and All State. Both companies have been accused of downright dishonesty, cheating, and fraud on a massive scale. It is a real pity to see these scumbags play with people's lives even a year after the tragedy of Katrina.


7 posted on 08/26/2006 2:53:48 PM PDT by indcons (FReepmail "indcons" to get on/off the Militart History ping list)
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To: balch3
these two stole confidential information from their employer,

Who looks like they may have been engaging in fraud.

8 posted on 08/26/2006 2:54:38 PM PDT by dirtboy (This tagline has been photoshopped)
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To: khnyny
I saw this on TV last night...I hope State Farm gets exactly what it deserves. A docs wife died soon after their claim was denied by State Farm. How very sad.

THIS COULD BE ANOTHER ENRON TYPE SITUATION!!!!

9 posted on 08/26/2006 2:54:48 PM PDT by shield (A wise man's heart is at his RIGHT hand; but a fool's heart at his LEFT. Ecc 10:2)
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To: khnyny

I can only speak for myself, but State Farm maxed out the coverage amounts on my homeowners, flood, and contents policies after Rita, along with the replacement cost of a very expensive boat, within 60 days of Rita. I could not be happier.

Methinks skulduggery is afoot, after all, plaintiff lawyers are involved.


10 posted on 08/26/2006 2:56:34 PM PDT by Comus
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To: khnyny

I'm reserving judgment on this.

Maybe a lot of the claims did involve water damage. (saw lots of water myself)

Evil insurance companies are easy targets.

Innocent people who choose to live in hurricane alley without proper insurance are easy victims.


11 posted on 08/26/2006 2:57:31 PM PDT by altura (Bushbot No. 1 - get in line.)
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To: khnyny

Cori and Kerri Rigsby.

I never trust women whose first nam4e ends in "i".


12 posted on 08/26/2006 2:58:09 PM PDT by Crawdad (So the guy says to the doctor, "It hurts when I do this.")
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To: balch3
"these two stole confidential information from their employer, and now they're on the payroll of a trial lawyer.."

True. I suppose our concern should be, "which is the greater evil"? {IF the allegations are true.}

And like a good neighbor,
State Farm is there."

Can you imagine how that song will be rewritten?

13 posted on 08/26/2006 2:58:22 PM PDT by labette
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To: balch3
these two stole confidential information from their employer

Sorry, my friend, but if it is evidence of fraud it is not confidential.

14 posted on 08/26/2006 2:58:32 PM PDT by AndyJackson
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To: shield

Trotting out someone in a wheelchair is an old liberal ploy.

Sad things did happen.

Not necessarily anyone's fault, except maybe Mother Nature, (or possibly corrupt local government and their levee problem)


15 posted on 08/26/2006 2:59:10 PM PDT by altura (Bushbot No. 1 - get in line.)
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To: altura
I think this is more than that. I hate the fact that State Farm and Allstate have both committed fraud. An adjuster had given reports to State Farm on their liability with wind damage over wind driven water damage. The reports were changed by an engineering company with his signature forged. He had a copy of his original reports...
16 posted on 08/26/2006 3:09:52 PM PDT by shield (A wise man's heart is at his RIGHT hand; but a fool's heart at his LEFT. Ecc 10:2)
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To: khnyny
Flood insurance vs. wind/water damage.Have you ever tried to read your insurance policy? Remember, these instruments are written by attorneys who specialize in weasel words.
17 posted on 08/26/2006 3:10:46 PM PDT by Apercu ("Res ipsa loquitur")
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To: khnyny

Ah tort lawyers involved. Hmmmmmm. We will see. I do believe they were stealing confidential info from their employers.


18 posted on 08/26/2006 3:22:06 PM PDT by freekitty
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To: Comus

There is a lot more fraud by the insured than by the insurers. It costs us dearly.


19 posted on 08/26/2006 3:22:07 PM PDT by stubernx98 (cranky, but reasonable)
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To: Comus
Methinks skulduggery is afoot, after all, plaintiff lawyers are involved.

Yeah, have you noticed how the MSM always picks up these big lawsuits, and always make what looks like a public relations infomercial for the plaintiff's case?

There was a LOT of back and forth between the lawyers and the producers of this program, you can bet.

20 posted on 08/26/2006 3:25:14 PM PDT by Fido969 ("The hardest thing in the world to understand is income tax." - Albert Einstein)
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