Defense lawyers see motive behind insurance-fraud case
By Sara Burnett, Rocky Mountain News (Contact)
Published September 11, 2008 at 12:05 a.m.
The indictment of 10 businessmen on insurance-fraud charges came after their business challenged insurance industry practices, putting the men "at odds" with high-profile people, attorneys for the company said Wednesday.
Lawyers for the owner and nine current and former employees of Disaster Restoration Inc., stopped short of saying the indictment was retaliation.
But they said they believe the investigation started when an organization funded by "the powerful insurance industry" contacted authorities.
"Insurance companies, as is well known to the public, aggressively try to minimize claims and increase their profits," attorney Daniel Sears said in a statement.
Disaster Restoration has been in business for 22 years, repairing properties damaged by disasters such as fires.
In a 60-count federal indictment returned this week, prosecutors said employees scammed insurance companies by getting subcontractors to submit bills 20 to 30 percent higher than their actual costs.
Sears said Wednesday the industry imposes a rigid pricing structure that doesn't allow contractors to recoup all of their costs.
He said Disaster Restoration has challenged those practices and that a "much larger story" will come out at trial.
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