By Emily Miller
A San Jose, California homeowner recently pleaded guilty to one misdemeanor count of insurance fraud earlier this month after intentionally withholding information from his insurer regarding a fire that destroyed his home.
Edward Russell, 59, failed to inform his insurer, Universal North Insurance Company, that his wife had deliberately set fire to their home in order to collect the full insurance benefits.
His wife, Christie Russell, was caught on video surveillance footage setting fire to the home after a family argument. She was later convicted of arson.
Russell, however, failed to report to his insurer that his wife was responsible for starting the fire in their residence.
As a result of the deception, Russell received the full benefits under his homeowner policy totaling more than $178,600. Had Russell disclosed his wife’s involvement, he would have received half of the benefits per the term of his policy.
“No matter what form insurance fraud takes, it harms insurers, consumers and California’s economy,” said California Insurance Commissioner Dave Jones in a press release. “In this case, had the homeowner been honest with his insurer he would have still received half the benefits of his claim. Unfortunately his choice to deceive his insurer and his subsequent conviction resulted in him paying a much higher price.”
As result, Russell was sentenced to 120 hours of volunteer work service, ordered to pay more than $89,000 in restitution to Universal North Insurance Company and placed on two years probation.
