Short History of Antifraud Efforts

Fraud in insurance has undoubtedly existed since the industry's beginnings in the seventeenth century, but it received little attention until the 1980s because law enforcement agencies had other priorities and were reluctant to provide the training needed to investigate and prosecute cases of insurance fraud. And, given the fine line between investigating suspicious claims and harassing legitimate claimants, some insurers were afraid that a concerted effort to eradicate fraud might be perceived as an ant consumer move. In addition, the need to comply with the time requirements for paying claims imposed by fair claim practice regulations in many states made it difficult to adequately investigate suspicious claims

But by the mid-1980s the rising price of insurance, particularly auto and health insurance, together with the growth in fraud committed by organized criminals, prompted many insurers to reexamine the issue. Gradually, insurers began to see the benefit of strengthening antifraud laws and more stringent enforcement as a means of controlling escalating costs - a pro-consumer move - and they found ready allies among those who been adversely affected by fraud. These included consumers, who were paying for fraud through their insurance premiums; the people used by organized fraud groups to file false claims, often the poor, who sometimes found themselves on the wrong side of the law; and chiropractors and other medical professionals who were concerned that their reputation as a group was being tarnished by organized fraud ringleaders who had recruited their members to make fraudulent claims for treatment.

In their fight against fraud, insurers have also been hampered by public attitudes. Ongoing studies by the Insurance Research Council show that significant numbers of Americans think it is all right to inflate their insurance claims to make up for all the insurance premiums they have paid in previous years when they have had no claims, or to pad a claim to make up for the deductible they would have to pay. In addition, insurance fraud must compete with violent and large-scale white collar crime for prosecutors' attention and resources. Prosecutors commonly use a dollar threshold before they will allot resources to trying fraud cases without investigating the merits of a case.

Antifraud activity on the part of state fraud bureaus and SIUs (special investigative units within insurance companies) increased in the 1990s. Heightened antifraud activity along with growth in funding for fraud-fighting personnel resulted in increased prosecutions. Successful prosecution not only blocks future fraudulent activities by individuals who are repeat offenders, but news of prosecutions also acts as a deterrent to others who may be contemplating committing fraudulent acts.

While the focus initially was on auto insurance fraud, antifraud efforts also encompass workers compensation fraud, where investigations are directed toward employers who, to obtain a lower premium, misrepresent their payroll or the type of work carried out by their employees. These two factors impact premiums. Payroll is important because workers compensation insurance provides for lost wages and insurers need to know the maximum they would have to pay if all employees were injured in the same accident; the type of work carried out by the firm affects the likelihood of injuries. Workers that use cutting tools, for example, are more likely to get injured on the job than office workers. Some employers also apply for coverage under different names to foil attempts to recover monies owed on previous policies or to avoid detection of their poor claim record, which would put them in a higher rating category. Medical care abuse is also a problem. Some medical care providers "up code" - exaggerate treatment provided to injured workers. Claimants may also abuse the system by over-utilizing medical care to keep receiving lost income (indemnity) benefits.

Client Reviews

Empire Pacific Investigative Services

4.8

Based on 88 reviews

Kim J.
My Son found Mike at Empire Pacific because we needed a detective in order to find someone. We had spend a lot of time and money on many search people websites and never found anything current on the person we were trying to find. We hired Mike to do an initial check to find the person. Mike called and said on the initial check that he had found what we needed, he said the second step would be to go look by foot and there would be a fee per hour. About 2 hours later Mike called and told us he had found the person and gave me his current phone number. I called and sure enough it was the person I was looking for. Now this shows how honest Mike is because he could have easily billed me for a few extra hours of leg work (which is paid per the hour) and I would not have known he already found the person. Mike was very attentive when I called and either picked up his phone or called me back very fast. I would highly recommend Mike, he is vey good at what he does and is respectful, honest and FAST!
Agustin C.
Mike Hakimi from EPIS is a true professional. He helped me with my case. He delivers effectively and fast! I was trying to find someone that nobody has heard from him from since the late 90's, I was very unsure he was still around. I needed to find him and interview him for my movie project. A key character. And Mike incredibly found him. Don't hesitate hiring Mike for any type of service.
Shera C.
Very pleased with Mike and his staff. Thank you for handling this surveillance case on such short notice. I was very pleased with your services and will do biz again with you for sure. I will be in touch:) 5 Stars!!!
Lance R.
Mike and his team are as professional as it gets. Very prompt to reply and understand the finesse needed in this service. I appreciate his expert feedback and how to best proceed in the most efficient way possible. Thank you again!!!

-LRR
Yossi S.
I have highest, highest praise for Mike at Empire Pacific Investigative Services. I had to take someone to court and I was concerned whether sheriff is efficient enough to do the serving or they will just attempt and I pay for nothing. I talked to Mike about serving this particular person and on top of it I try to force future steps of collection and Mike was extremely helpful to show me in and outs of all the options that I have and how he can help me.

My concern was the person that I am suing would play hide and seek, not available during the day and difficult to catch. Sure enough Mike served the paper within 2 to 3 days and informed me accordingly.

I am so happy to know Mike and would not hesitate to recommend him to anyone that has needs for his services.
Kevin O.
I was searching for a family relative, for over 40+ years with no such luck. So I decided to find a private investigator. I contacted Mike at Empire Pacific Investigative Services and in the same day he found the person I was looking for easily. I was so blown away! This service is AAA+ and I would definitely use them again, again and again! Thank you Mike!
Deborah O.
Top notch experience with Empire and Mike!
No lag time or waiting around. He gave me the difficult diligence I needed within the week.
Professional, friendly and available whenever I need the.
Prompt response time and easy to reach!
Thanks Mike! I'll be using your services again. Wouldn't go to anyone else!

Deb Olberding
Magda S.
I had very good experience with Empire Pacific Investigative Services, Mike was very determined and efficient, detail oriented and reliable. His work effect exceeded my expectations.
Yossi S. Los Angeles, CAV
0 friends
4 reviews

11/20/2017

I have highest, highest praise for Mike at Empire Pacific Investigative Services. I had to take someone to court and I was concerned whether sheriff is efficient enough to do the serving or they will just attempt and I pay for nothing. I talked to Mike about serving this particular person and on top of it I try to force future steps of collection and Mike was extremely helpful...

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Agustin C. Los Angeles, CA
10 friends
3 reviews

4/26/2018

Mike Hakimi from EPIS is a true prfessional. He helped me with my case. He delivers effectively and fast! I was trying to find someone that nobody has heard from him from since the late 90's, I was very unsure he was still around. I needed to find him and interview him for my movie project. A key character. And Mike incredibly found him. Don't hesitate hireing...

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Marcus B. Ewa Beach, HI
32 friends
86 reviews

2/27/2018

I contacted Mike at Empire to do some research for me on an old insurance claim. It ended up not being along the lines of work that he was an expert in but what was so great about the experience was that Mike went out of his way to find me someone that did specialize in the area. If you are considering a couple options on who you need for your investigation you...

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Magda S. New York, NY
27 friends
2 reviews

3/21/2018

I had very good experience with Empire Pacific Investigative Services, Mike was very determined and efficient, detail oriented and reliable. His work effect exceeded my expectations.

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Shera C. Orange, CA
8 friends
24 reviews

2/27/2018

Mike's firm is awesome. I gave them short notice to conduct surveillance and they totally delivered. Thank you and your staff for handling this assignment for me on such short notice...

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Jonatan C. Chatsworth, Los Angeles, CA
0 friends
8 reviews

8/25/2017

I have worked with a few private investigation firms, and in my opinion, Empire Pacific Investigative "Mike Hakimi" is the best one...

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