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State Fraud Bureau Absolved Of Fund-Raising Impropriety.(Workers' Compensation Bureau and...

Publication: Claims
Date: Tuesday, June 1 1999

The Supreme Judicial Court of Massachusetts has found that insurance industry funding of the state's fraud bureaus is not unconstitutional.

The state's practice of assessing the Workers' Compensation Bureau and the Automobile Insurance Bureau, supported by member company dues, in order to fund the Insurance Fraud Bureau (IFB) was challenged by the defendants in a workers' compensation fraud case in 1997. James and Nicholas Ellis, partners in the Worcester Co. law firm Ellis & Ellis, along with 22 others, were indicted for insurance fraud, larceny, attempted larceny, co

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