Fraud? Stay tuned. This could be BIG!

Short version: two sisters took papers from their job and gave to lawyers in an attempt to prove the insurance company was committing fraud.

From Yahoo News:

The sisters, who managed teams of State Farm adjusters, say the documents show that the insurer defrauded policyholders by manipulating engineers' reports so that claims could be denied.

"I think we've given him the smoking gun," Cori Rigsby, 38, told The Associated Press during a recent interview at the home she shares with her sister near Ocean Springs.

State Farm spokesman Phil Supple said the Bloomington, Ill.-based company is reviewing the sisters' allegations but hasn't been allowed to question them.

"State Farm's employees are committed to conducting themselves in an ethical and appropriate manner," Supple said. "Any suggestions to the contrary are simply wrong."

Hundreds of homeowners on Mississippi's Gulf Coast have sued their insurance companies for refusing to pay for millions of dollars of damage from Katrina. A judge who presided over the first Katrina insurance trial ruled this month that Nationwide Mutual Insurance Co. must pay for damage caused by wind but not from flooding, including storm surges"

Wow. This could be HUGE. And while I wish it hadn't come to this, if the reports are true, then hats off to the two sisters!