The Scope and Severity of Arson for Profit Essay - 1640 Words

Arson for profit is a form of insurance fraud that involves deliberately and intentionally setting fires for monetary gain (U.S. Fire Administration, 2009). Also called economic arson, arson for profit occurs when businesses or individuals deliberately set fires in order to dispose of insured property, including buildings, automobiles, boats, and land, and reap financial benefits by filing insurance claims against the property (U.S. Fire Administration, 2009). Arson for profit is a serious crime, resulting in destroyed property, higher insurance premiums, wasted government resources, and even death (Goetz, 1997; U.S. Fire Administration, 2009). The following paper will explore this form of white collar crime by examining the motives and†¦show more content†¦The available data, however, does show that arson is the leading cause of property loss. According to the National Fire Protection Association (NFPA), there were approximately 323,900 reported cases of arson in 2005 ( U.S. Fire Administration, 2009). These arsons resulted in 493 deaths, including three firefighters, 1,500 civilian injuries, and the injury of 7,600 firefighters, as well over $1.1 billion in property damage (U.S. Fire Administration, 2009). While arson is defined as the intentional and malicious setting of fire to a building, land, a vehicle, or other property with the intent to cause damage, arson for profit is the intentional and malicious setting of fire for financial again, often with the intent to commit insurance fraud (U.S. Fire Administration, 2009. The scope of arson for profit ranges from individuals using arson to escape an unwanted car loan to business ventures that buy property for the sole purpose of burning them to collect the insurance (U.S. Fire Administration, 2009). The end results of these types of insurance scams can generate over one billion in annual insurance pay-outs (U.S. Fire Administration, 2009). Arson for profit also results in â€Å"lost housing , tax dollars, and jobs, and more costly government services† (Goetz, 1997, p. 562). Types of Arson for Profit One common form of arson for profit is vehicle arson. It is estimated that there are approximately 36,000 cases of vehicle arson annually in the U.S.Show MoreRelatedFrauds in Insurance11958 Words   |  48 Pagesenterprise. Fraudulent claims account for a significant portion of all claims received by insurers, and cost billions of dollars annually. Types of insurance fraud are very diverse, and occur in all areas of insurance. Insurance crimes also range in severity, from slightly exaggerating claims to deliberately causing accidents or damage. Fraudulent activities also affect the lives of innocent people, both directly through accidental or purposeful injury or damage, and indirectly as these crimes causeRead Morelaw of contract11640 Words   |  47 Pagesstar in their production wasted expenditure can be recovered when it is wasted by reason of the defendant’s breach of contract and when it is reasonably imputed that if the contract was broken, the expenditure would be wasted cannot prove lost profits so entitled to claim reliance interest Damages for Pre-Contract Expenditure, A. I. Ogus if the plaintiff is allowed to elect between his reliance and expectation interest, he may be put in a better position than if the defendant had performedRead MoreBanking Laws and Jurisprudence Reviewer41247 Words   |  165 Pagesconsidered the very core of the banking’s very existence Liability for Acts of Officers and Employees †¢ A bank is liable for the wrongful acts of its officers done in the interest of the bank or dealings as bank representatives but not for acts outside the scope of their authority. †¢ †¢ †¢ 3 Moral damages Gen. Rule – a corporation is not entitled to moral damages †¢ Exception – when its good reputation is besmirched by breach of fiduciary duty. †¢ In culpa contractual – recoverable if there is fraud or badRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pagespartnership Cisco formed with a university in China. 6 CHAPTER 1 What Is Organizational Behavior? others and who are responsible for attaining goals in these organizations are managers (sometimes called administrators, especially in not-for-profit organizations). Management Functions In the early part of the twentieth century, French industrialist Henri Fayol wrote that all managers perform five management functions: planning, organizing, commanding, coordinating, and controlling.5 Today