FILE - This photo provided by the California Department of Insurance shows a bear costume allegedly worn by suspects with the aim to commit insurance fraud. (California Department of Insurance via AP, File)

California Department of Insurance

Insurance fraud is a major problem with estimates of amounts lost due to fraud from all lines of insurance including health, auto, property, life and workers compensation estimated to be as high as $308 billion by the Coalition Against Insurance Fraud.

According to the National Insurance Crime Bureau, motor vehicle insurance fraud accounts for losses of approximately $7.7 billion annually with 10% of all motor vehicle insurance claims containing an element of fraud according to the Insurance Research Council. The most common forms of motor vehicle insurance fraud are exaggerated damage claims and staged accidents.

Unfortunately, according to the Coalition Against Insurance Fraud less than 1% of detected insurance fraud cases result in criminal prosecution.

But not this time.

Recently Alfiya Zuckerman, Ruben Tamrazian and Vahe Muradkhanyan were convicted of felony insurance fraud after being caught bear handed, so to speak.

The California Department of Insurance began an investigation dubbed “Operation Bear Claw” after an insurance company identified a suspicious claim related to a January 28, 2024 incident in Lake Arrowhead, California in which Zuckerman, Tamrazian and Muradkhanyan claimed a bear entered their 2010 Rolls Royce Ghost causing extensive damage to the interior of the car. In support of their claim, they submitted video surveillance footage showing the bear in their car. During the course of their investigation, detectives discovered two additional claims with two other insurance companies claiming similar bear damage to two other cars, a 2015 Mercedes G63 AMG and a 2022 Mercedes E350 filed by the same people for incidents at the same date and location where the Rolls Royce was allegedly harmed by a bear. All in all, the insurance companies paid $141,839 for the three claims.

But can a bear open a car door?

Believe it or not, bears can readily open car doors and often do so in national parks or campgrounds looking for food. In fact, in 2021, according to the Colorado Parks and Wildfire Department, a single bear in Colorado went through eight cars in one night. In its report on the incident the department noted, “in the town of Estes Park, Wildfire Officer Rylands observed 8 vehicles overnight that a bear got into. All 8 vehicles were UNLOCKED. While not all of the vehicles had food or attractants, some bears go from car to car just to see if they’re unlocked, then hope to find food.”

So, bears causing damage to the Rolls Royce and two Mercedes automobiles was possible, however, it still seemed suspicious to California Department of Insurance detectives who thought the bear shown in the video’s movements were questionable. A biologist from the California Department of Fish and Wildlife was brought in to analyze the video who concluded that while the perpetrator was not a wolf in sheep’s clothing, it definitely was a human in a bear costume. Subsequently a search warrant was issued, and the bear suit was discovered at the home of the suspects.

Zuckerman, Tamrazian and Muradkhanyan eventually pleaded guilty to felony insurance fraud. Apparently, they could not bear the ordeal of a trial. (Sorry). A fourth defendant, Ararat Chirkinian has also been charged and is scheduled for a preliminary hearing in September.

California Insurance Commissioner Ricardo Lara summed up the incident saying “What may have looked unbelievable turned out to be exactly that – and now those responsible are being held accountable. My Department’s investigators uncovered the facts, exposed this scam and helped bring these defendants to justice. Insurance fraud is a serious crime that drives up costs for consumers and no scheme is too outrageous for us to investigate.