Federal Jury Renders Verdict Against State Farm

ABC News is reporting that a Federal Jury has found that State Farm Fire and Casualty Company has committed fraud while falsifying reports of damage to a home damaged during Hurricane Katrina. State Farm auditors Cori and Kerri Rigsby testified that they witnessed widespread fraud in State Farm offices in Biloxi and Gulfport Mississippi. Specifically, using a falsified report, State Farm avoided paying $250,000 for wind damage to a residence and instead, was able to shift the resposibility to the National Flood Insurance Program. ABC News has also reported that the federal govenrment will seek reimbursement and that State Farm will appeal the ruling. Furthermore, the ruling opens the possibility for “review of thousands of similar cases”. The entire article can be found on the ABC News website located at http://www.abcnews.com.

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