REP. LIGHTNER: HOUSE SLAMS THE DOOR ON INSURANCE FRAUD

The following information was released by the Michigan House of Representatives, the Republicans:

State Rep. Sarah Lightner's plan to put insurance fraudsters in the same league as mobsters and money-launderers won overwhelming approval in the Michigan House today.

Lightner's bill, House Bill 4717, updates Michigan's racketeering laws so prosecutors can finally treat large-scale insurance fraud as the organized crime that it is. The measure passed the House by a bipartisan vote of 101 to 2.

"Fraud is theft, plain and simple," said Lightner, R-Springport. "It steals from every hardworking family who plays by the rules. Michigan residents are tired of paying higher premiums because con artists and scam artists know our laws are too weak. That ends today. We are hitting fraudsters where it hurts in the wallet and in the courtroom."

The bill is part of a broader insurance fraud reform package. It empowers prosecutors to pursue racketeering charges against those who run auto insurance scams, file bogus claims, or manipulate vehicle titles and registrations for profit. Racketeering convictions can bring serious prison time and forfeiture of criminal profits.

Lightner, who chairs the House Judiciary Committee, said expanding racketeering to cover fraud will give police and prosecutors the leverage they need to dismantle crime rings that drain billions out of the economy and punish honest drivers.

"This is about protecting families in Calhoun County and across Michigan," Lightner said. "Every dollar stolen by fraudsters is a dollar that could have gone to an honest driver or to keeping premiums down. Today we made clear that if you cheat the system, you will be treated like the criminal you are."

The bill now advances to the Michigan Senate for consideration.