Man faces up to 10 years in prison for water damage insurance fraud

Man faces up to 10 years in prison for water damage insurance fraud | Insurance Business

Man faces up to 10 years in prison for water damage insurance fraud

A Houston man could face a federal prison sentence of up to 10 years after pleading guilty to insurance fraud.

Earlier this week, Robert Lance Kuperman pleaded guilty to interstate transportation of money by fraud in the Eastern District of Texas. As part of the plea, he was also ordered to repay his insurer $136,000.

According to insurance documents, Kuperman, 71, had purchased a home on Lake Livingston in Polk County, Texas in 2013. Sometime in July 2015, he submitted an insurance claim for water damage to the property. He said that the damage was caused by a defective water heater. Kuperman submitted fraudulent documentation for out-of-pocket costs for the replacement of personal property which was supposedly damaged by the leak.

Due to the fraudulent claims, American Strategic Insurance Company issued a series of checks made payable to Kuperman. One of the checks was for over $136,000 in payouts.

On July 2020, a federal grand jury returned an indictment, which charged Kuperman with federal violations.

“Insurance fraud ultimately harms individual Americans in the form of higher insurance premiums, making every business more expensive to operate, and passing these costs on to the consumer in the form of higher prices,” said Acting US Attorney Nicholas J. Ganjei.  “Our office will diligently prosecute those who seek to commit insurance fraud in the Eastern District of Texas.”

Herald Democrat reported that Kuperman faces up to 10 years in federal prison. A sentencing hearing will be scheduled once a presentence investigation by the US Probation Office has been completed.