What are the consequences of federal insurance fraud charges?

What are the consequences of federal insurance fraud charges?

On Behalf of | Sep 4, 2023 | blog, Criminal Defense

Federal insurance fraud is a serious offense and is not taken lightly in the U.S. judicial system. When someone manipulates or lies to an insurance company to receive benefits or payouts they are not entitled to, they commit insurance fraud. This includes faking accidents, exaggerating damages, inflating medical bills or staging thefts.

You need to understand the repercussions if you or someone you know gets involved in such activities. The penalties for committing federal insurance fraud vary based on the specifics of the offense. However, there are some expected consequences you should be aware of.

Lengthy prison sentences

Federal insurance fraud may result in significant prison time. If they convict you, you might face up to 10 years in prison. If the fraud results in serious injury to another individual, the prison sentence increases, with a potential maximum of 20 years. The maximum prison sentence is five years if charged with conspiracy to commit health care fraud.

Hefty fines

Financial penalties for federal insurance fraud are substantial. You could face fines of up to $250,000 for individual offenders. If a group or organization commits the fraud, the fines reach up to $500,000.


In addition to fines, the court might order you to pay restitution. This means you must repay the amount defrauded from the insurance program or the injured party. This is often in addition to any other fines or penalties.


Sometimes, those convicted of federal insurance fraud receive probation instead of, or in addition to, prison time. You must regularly check in with a probation officer and adhere to specific terms and conditions during probation. Any violation of these terms usually results in immediate incarceration.

Loss of professional licenses

If you work in a professional field and commit insurance fraud, you risk losing any licenses or certifications related to your profession. This significantly impacts your future career prospects and livelihood.

Federal insurance fraud charges have severe penalties that affect every aspect of your life. You need to understand the gravity of these consequences to make informed choices. Act with integrity and caution when dealing with insurance matters to ensure you stay on the right side of the law.