Alaska Man Guilty of Reinstating Policy Before Reporting Accident

An Alaska man has pled guilty to theft in the second degree, a class B felony, stemming from a fraudulent insurance claim, according to the state Division of Insurance Office of Special Prosecution and Appeals.

Earlier this summer, an investigation determined that Fadey Kuzmin committed fraud by reinstating his lapsed automobile insurance before reporting an accident. He was ordered to serve five-year Suspended Imposition of Sentence, 120 hours community service and pay restitution of $12,000 to State Farm Insurance Company.

Division of Insurance Director Linda Hall hired an insurance fraud attorney within the Department of Law to help crack down on insurance crimes in 2006. “This conviction is the third felony conviction we’ve received since hiring an attorney dedicated to stopping fraud,” she said.

Hall said insurance fraud of more than $500 is considered a felony offense. Penalties vary based on the amount, with a maximum sentence of 10 years in jail, and can include 120 to 1,000 hours of community service work, probation, as well as full restitution to the victim.