“State Farm reinvention,” a Civil RICO Fraud?
Updated: May 28, 2020
By: C. J. Bouvier
April 3rd, 2020
Dallas, TX –Plaintiffs in a Federal Civil RICO Case have brought Civil RICO allegations against Michael Tipsord, Jon Charles Farney, Rand Harbert, Paul Smith and Michael Wey. The Complaint alleges these individual defendants conspired to create a racketeering enterprise comprised of the 24 companies owned by State Farm Mutual Automobile Insurance Company, known as the “State Farm Group.”The Complaint details how the accused worked in a conspiracy to author knowingly fraudulent regional and national corporate policies, which intentionally directed, instructed and encouraged employees and third-party agents to engage in frauds and commit racketeering crimes with the purposeful intent to defraud consumers.
The Complaint shows as evidence of this conspiracy a 2017 interview of defendant and Chief Marketing Officer Rand Harbert (https://cmo.adobe.com/articles/2017/2/marketing-today-podcast-rand-harbert-cmo-state-farm-.html#gs.128elq). In this interview, Mr. Harbert discusses the “reinvention” of “State Farm” and discusses insurance products offered by “State Farm.” The Complaint alleges the purposeful misuse of a trademark owned by State Farm Mutual Automobile Insurance Company in the propagation of a “single entity trade name fraud scheme.” The Complaint alleges the defendants purposefully abused the term “state farm” to defraud consumers, including the Plaintiffs, to sow confusion as to the value of products offered and what actual company was indemnifying, selling and servicing the products offered to consumers.
The Complaint also shows the commingling of monies between the 24 companies, as well as, acts of bank fraud in the issuance of payments made by the racketeering enterprises and the false reporting of the “State Farm Group” as a holding company. The Complaint alleges and supports “the state farm group” is not a registered corporate entity and that State Farm Mutual Automobile Insurance Company is not registered as a “holding company.” In fact, the company is corporately registered as a “mutual company engaged in the sale and underwriting of automobile insurance.”
The Complaint shows a consistent pattern of corporate fraud conducted by the Individual Defendants, as well as, patterns of racketeering activities within the 24 companies owned by State Farm Mutual Automobile Insurance Company. These racketeering activities include acts of mail and wire fraud, bank fraud, extortion, robbery and acts of intimidation, as well as, bait and switch sales frauds. Included as defendants are State Farm Mutual Automobile Insurance Company, and State Farm Fire and Casualty Company.
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