Man Fakes Death to Scam 14 Insurance Companies out of $4.5 Million
Fraudulent schemes to obtain large insurance sums have been making headlines in Germany since 2020. A couple, Christoph H and Olena (both 56 years old), meticulously planned for the husband to fake his death and claim £3.4 million ($4.5 million) in insurance money. However, the insurance company sensed something was amiss and contacted the police.
A Cunning Plan
In October 2019, Christoph purchased a motorboat and pretended to sail from the German city of Kiel to Denmark. He deceived the insurance company by staging a dramatic scene of the boat capsizing in the Baltic Sea and his demise. In reality, he jumped off the boat, hopped onto an inflatable dinghy, and made his way back to the shore.
Christoph had booked a hotel room in Bargenkop, Denmark, and then went into hiding for six months in an attic room at his mother’s house near Hanover, Germany.
Christoph and Olena hoped to deceive the insurance company before getting caught (Photo: Cen)
The Unraveling
According to local media reports, the couple waited until April 2020 to officially declare Christoph’s legal death to collect from 14 life insurance policies. However, a few weeks later, the insurance companies grew suspicious and alerted the authorities. A manhunt for Christoph ensued.
In May 2020, the police discovered Christoph alive and arrested him. He was eventually sentenced to three years and two months in prison for fraud. His wife received a two-year probation after admitting her involvement in the scam.
Before being sentenced, Christoph apologized for his fraudulent actions, stating, “The things I did were completely insane.”
Christoph hiding in an attic room for six months until discovered by the police (Photo: Cen)
Olena admitted she should not have followed her husband’s plan (Photo: Cen)
A History of Insurance Fraud
This case of insurance fraud is not unique. Throughout history, many individuals have committed crimes to claim insurance money. A prominent example occurred in the United States in 1989. A woman named Ellen purchased life insurance policies for her daughter Stacy and son Stevie in July of that year. By the end of August, the two children were beneficiaries of policies from three different companies, receiving a total of $100,000 (approximately $2.5 billion today).
The insurance companies grew suspicious as to why two healthy children had such high coverage. It turned out to be part of Ellen’s plan to accumulate wealth.
On the evening of September 13, 1989, while her 8-year-old daughter was bathing, Ellen threw a plugged-in hair dryer into the tub. Stacy screamed in pain and called for her mother. Ellen nonchalantly removed the hair dryer, relieved that Stacy had not suffered any serious injuries.
Twelve days later, while her son Stevie was asleep in the living room, Ellen suffocated him by pressing a pillow onto his face until he stopped breathing. The police couldn’t find enough evidence to charge Ellen, so she resumed her normal life.
Upon investigation, it was discovered that Ellen had purchased insurance policies for her children while being burdened by massive debts. She received a total of $94,000 (over $2.3 billion today) in life insurance payouts. Just a month after Stevie’s death, she bought a new car. This behavior was peculiar for a financially struggling woman, raising suspicions. The police intensified their investigation, leading to the capture and conviction of Ellen in early 1991.
These cases serve as reminders of the lengths some people will go to defraud insurance companies. It also highlights the importance of insurance companies’ diligent assessments to detect and prevent such fraudulent schemes.
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