Arson Suspected in $385,000 Insurance Fraud Scheme
Phoenix, AZ – The Arizona Department of Insurance (ADOI) Fraud Unit, in conjunction with the Phoenix Fire Department Investigations Unit, arrested Mohamed Abdulrahman on multiple felony charges, including arson of an occupied structure, insurance fraud, fraud schemes and theft.
The fire occurred in a commercial storage building in the early hours of November 1st, 2017. When Mr. Abdelrahman was interviewed by insurance adjusters, he misrepresented details and facts during the claim process, which is a violation of Arizona statutes. During the claim process, Mr. Abdelrahman pushed for a fast settlement, and even filed complaints with the Arizona Department of Insurance Consumer Affairs Division, requesting assistance because the insurance companies were not paying him for his losses.
During the four-month investigation that would ensue, investigators learned that Mr. Abdelrahman had increased his insurance coverage on the unit a few days prior to the fire. Mr. Abdelrahman was in the area of the storage facility when the fire was discovered and used his vehicle to block first responders from entering the location, alleging his vehicle broke down in-front of the facility entrance. The building security cameras were sabotaged hours before the fire was reported.
The claims Abdelrahman filed with insurance companies totaled $385,000.00. The case is being submitted to the Arizona Attorney General’s Office for criminal charges. If found guilty, Mr. Abdelrahman could receive up to 12 1/2 years in prison.
We are aware of a phishing scam targeting insurance professionals claiming that the National Association of Insurance Commissioners received a complaint that the professional submitted a falsified claim. This fraudulent email displays the NAIC and CIPR logos, can originate from what appears to be an naic.org or gmail.com email account, and instructs the recipient to click on a link to download the complaint notification.
Certain antivirus products will detect this as a malicious email. If you receive a similar email and have any concerns, contact the NAIC Service Desk at (816) 783-8500 or [email protected].