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Hamm: Fargo father and son charged with insurance fraud

Posted on 7/9/2010

BISMARCK, N.D.-North Dakota Insurance Commissioner Adam Hamm announced today that a Fargo father and son have been charged with insurance fraud, thanks in part to the investigative work of the North Dakota Insurance Department. The two men have been charged with various crimes, including insurance fraud, theft and illegally conducting an enterprise.

In total, Sead Mustafic, 43, and Senad Mustafic, 24, both of Fargo, were allegedly involved in more than 30 auto accidents between July 2008 and June 2010. The men allegedly caused the accidents intentionally and are alleged to have inflicted further damage to their vehicles after some of the accidents to increase the value of the insurance claims.

The North Dakota Insurance Department followed up on a suspected fraud report from an insurance company, interviewed witnesses, reviewed claims information and worked with the North Dakota Highway Patrol on accident reconstruction. The information was then turned over to the Cass County State's Attorney's office for prosecution.

"Insurance fraud raises the yearly cost of premiums by about $300 for the average household," Hamm said. "The Insurance Department takes insurance fraud very seriously and is dedicated to seeing that the people responsible are prosecuted."

If you suspect insurance fraud or want more information about this case, please contact the Insurance Department at 1-800-247-0560.
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