December 20, 2002

Insurance fraud lands man in jail
Winnipeg man found working while collecting benefits

Richard George Martens of Winnipeg was sentenced to six months in jail and ordered to pay restitution of $11,678 to Manitoba Public Insurance after pleading guilty to fraud over $5,000 in provincial court yesterday.

Martens, 42, had been receiving disability payments from Manitoba Public Insurance as the result of a motor vehicle crash in March 2000. After a case manager with Manitoba Public Insurance noticed several irregularities with Martens' file, it was forwarded to the Special Investigation Unit (SIU) of Manitoba Public Insurance. An investigation revealed that Martens was working while collecting disability payments.

Martens' jail term comes only a day after the Canadian Coalition Against Insurance Fraud reported that insurance fraud costs Canadian policyholders over $1 billion each year. To the average citizen, that means at least ten percent of their total insurance premiums are used to cover the cost of fraud.

"Fraud is not a victimless crime," said Jack Zacharias, President and CEO of Manitoba Public Insurance. "Our corporation is committed to protecting honest ratepayers. While the vast majority of claims are legitimate, we will rigorously investigate potentially fraudulent claims."

Manitoba's justice system has taken a tough stand against fraud, evidenced in $125,000 in fines ordered by the courts between March 1, 2000 to February 28, 2001. Manitoba Public Insurance's seconded Crown Attorney also secured $166,000 in restitution orders from Manitoba courts.

One of the largest financial penalties last year was handed to a 27-year-old Winnipeg man who received a fine of $25,000, and was ordered to pay $39,821.96 in restitution to MPI after pleading guilty to one count of fraud over $5,000 and four counts of possession of stolen property.

"Honest Manitobans shouldn't have to pay for the fraudulent actions of a few," said Randy Bell, Manager of the SIU. "It's our responsibility to our policy holders to protect them from the cost of fraud."

Contact:
Brian Smiley/Twila Allen
Media Relations
Manitoba Public Insurance
(204) 985-7678/7300 or 1-888-554-9549 (toll-free in Manitoba)

 

© 2002 Manitoba Public Insurance