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Insurance Commissioner Jones announces arrest of Mill Valley business owner for Insurance Fraud

Dave Althausen
August 4, 2011 1:26 PM

On June 1, 2011 Bijan Madjlessi, 55, of Mill Valley was arrested on two felony counts for violating sections 550 (b) (1) and 550 (b) (2) of the penal code.

An investigation by the CDI Fraud Division, Benicia Regional Office revealed evidence that Madjlessi, filed claims to Fireman's Fund and Travelers Insurance Companies for the same damages that were a result of a suspicious fire that occurred at a construction project in Reno, NV. Madjlessi allegedly made numerous false statements to both companies in support of his claims which resulted in both companies paying twice for the same damages. Madjlessi is believed to have been paid $860,376.00 that he was not entitled to.

Fireman's Fund Special Investigations Unit (SIU) submitted a report to the Department of Insurance, Fraud Division. Fireman's Fund determined that Madjlessi filed insurance claims with Fireman's Fund and Travelers Insurance for the same damages that were a result of a suspicious fire that occurred at a construction project in Reno, NV. It was alleged that Madjlessi made false statements to both companies in support of his claims which resulted in both companies paying twice for the same damages.

Investigators from Fireman's Fund SIU discovered that Madjlessi also had a claim with Travelers Insurance for fire damage that occurred on the same day, July 29, 2008. Fireman's Fund SIU was assigned to investigate this further. They obtained a copy of the Travelers claim file and determined both companies paid Madjlessi for the same damages to the north tower. Their investigation revealed that Madjlessi allegedly made false statements to Fireman's Fund and Travelers in regards to having a second insurance policy and a second insurance claim. They determined Madjlessi allegedly lied to both carriers so that he would get paid by both carriers for the same damages.

Sometime in 2009, Travelers was advised by Fireman's Fund that both companies paid out for the same damages to the north tower. It is believed that if Madjlessi had told the truth that he did in fact have another insurance policy with Fireman's Fund, Travelers would not have paid the full amount of the claim. Travelers and Fireman's Fund would have split the repair costs. Both companies would not have paid twice for the exact same damages to the north tower.

 

 

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