A whistleblower lawsuit filed last year on behalf of the state of Minnesota accuses the two life insurance companies of failing to pay the policies of 600 deceased policyholders from Minnesota.
The lawsuit accuses Prudential Financial Inc., and MetLife Inc., of violating the Minnesota False Claims Act, and seeks over $230 million in damages. The lawsuit is one of several filed by Total Asset Recovery Services on behalf of various states. An attorney for the private investigation company said the insurance fraud “committed on the states is in the billions of dollars,” and described the number of victims of the fraud as “mindboggling.”
According to the whistleblower lawsuit, MetLife and Prudential did not pay the beneficiaries of deceased policyholders, nor did they turn the money over to Minnesota’s unclaimed property unit. The complaint says that between September 31, 1986 and September 31, 2009 at least 584 policies were not paid when the companies “knew or should have known the policy holders were deceased,” the Star Tribune reported. Total Asset Recovery Services says they expect to find far more than 584 unpaid policies, calling the number “the tip of the iceberg.”