Issaquah woman ordered to pay $300,000 for insurance fraud

November 19, 2010

By Warren Kagarise

NEW — 4:55 p.m. Nov. 19, 2010

A King County Superior Court judge ordered Issaquah resident Linda Ann Rose on Friday to pay $300,000 in restitution to insurers she bilked after a parking lot fender bender.

Rose, 67, has been ordered to pay $250,000 to Progressive and $25,000 to MetLife. Rose must also forfeit another $25,000 in a structured settlement from MetLife. The settlement had not yet been paid.

Rose pleaded guilty to three felony counts of using false claims or proof to file insurance claims in early November.

The sentence stemmed from a Nov. 13, 2004, accident in the Pine Lake Village shopping center parking lot in Sammamish. State Office of the Insurance Commissioner investigators said a Lexus sport-utility vehicle backed out of a parking stall and struck Rose’s vehicle, a rented Ford Mustang.

Though photos of both vehicles showed only minor damage, Rose claimed severe back injuries resulted from the collision. The other driver had coverage from three insurers, and Rose demanded compensation from all of them.

Investigators said she filed a claim for $800,000 against the driver and Progressive Insurance. The claim turned into a personal injury lawsuit.

Prior to filing the lawsuit, Rose obtained her medical records from a records storage company, and her attorney included the records in the demand package submitted to Progressive.

Investigators said the same records had been used to support claims from Rose’s insurer, MetLife, and RLI, a company with a $1 million umbrella policy on the SUV driver.

Progressive and MetLife settled the claims, based on the medical records. The insurers paid a combined $310,000.

But RLI attorneys subpoenaed Rose’s medical records and uncovered alterations made to the records used in the lawsuit. Someone replaced a diagnosis of chronic knee pain to chronic back pain six times in the altered records.

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