As we look at the horizon, we realize that there are a huge number of auto accidents that occur each and every year. The vast majority of them, without any doubt whatsoever, are accidents that occur as result of inattentiveness. However, there are some that take place that are referred to as “staged” accidents. In fact, these are not accidents at all. They are incidents in which an individual will engage in some activity while behind the wheel of a vehicle to cause an accident with another vehicle. This would be an instance in which even if individuals were to obtain either lawuit loans or settlement loans, if the underlying fraud is detected, the non-recourse nature of such financing would not be inapplicable.
As we have stated in the past, a non-recourse loan simply means that if lawsuit funding is advanced in a case that is not successful in its outcome, the individual to whom the litigation financing is advanced is not required to repay that money. Hence, lawsuit funding is truly not a loan.
Obviously, there are many inherent dangers in staged accidents. Although they can occur in relatively innocuous situations (e.g., jack-rabbit starts), they are also occurring in life-threatening situations in which two vehicles will attempt to sandwich another vehicle between them. Although not common, there are instances in which people lose their lives as a result of staged accidents.
Make no mistake about it, a staged accident is fraud. These are examples of cases that certainly lend credence to insurance carriers portrayal of virtually all claimants as frauds and individuals who are attempting to abuse the system. Such actions harm society as a whole. Tragically, these incidents can destroy lives, livelihoods, and families.
Lawsuit loans and settlement loans are readily available to individuals who do sustain injuries in legitimate accidents. However, keep in mind that a staged accident is not an accident at all. It is something that is intended. It is the intent of this action that results in the criminal element behind it. Individuals who engage in such activities, if detected, are often prosecuted severely.
One of the reasons I brought this up in this article is because of the number of mills that are cropping up throughout the United States. It is amazing to see the amount of involvement with corruption when it comes to these types of claims. I’ve encountered situations in which individuals who own funeral homes are involved in improperly disclosing information to attorneys and providers – as well as others – in an effort to procure some type of payment for the information illicitly traded.
As I stated, fortunately this is a very small percentage of individuals who engage in this activity. However, if you become aware of such individuals or are personally being subjected to pressure by either attorneys or providers to encourage you to engage in such fraudulent activity, I would encourage you to report this to law-enforcement authorities as quickly as possible. Lawsuit loans and settlement loans can be extremely helpful for individuals who genuinely need this form of financial assistance. However, they will certainly not be made available, at least not knowingly, to individuals who attempt to perpetrate fraud on society.