Mold Rush Days

[Guest guest]

http://www.austinreview.com/articles/2002_10/mold2.htm

October 31, 2002

Mold Rush Days

By CARL H. TEPPER

A home is a man's castle, and every castle needs a moat to dissuade

attackers. In this day and age, instead of a moat the homeowner needs

knowledge of current events, a good insurance company, and common sense to

fend off the hoards of lawyers and unscrupulous contractors who have

encircled American communities. For years, lawyers and contractors have been

utilizing scare tactics to swindle millions of dollars from homeowners and

insurance companies.

The use of junk science to cheat homeowners and insurance companies started

with the asbestos scare of the 1960's. Even today American cities are filled

with needlessly abandoned buildings because of lawyers, unscrupulous

contractors, and knee-jerk government reaction causing the evacuation of

formerly valuable assets. When the lawyers, contractors and politicians

milked the asbestos issue for all it was worth, they turned to the myth of

radon gas, then radon gas turned into toxic poisoning, then electromagnetic

waves (they're coming back again), and now mold.

But all is not lost. Scientists and medical experts, who may finally be

getting the attention they deserve, are alerting the public that most mold,

including allergenic mold, is not nearly as dangerous or pervasive as " mold

remediation experts " claim.

Gailen Marshall, director of the Division of Allergy and Clinical Immunology

at the University of Texas Medical School in Houston, said, " Mold is

everywhere. For most people, mold is a mostly ignored part of their lives.

For some with mold allergies, the smell can cause nasal allergy or even

asthma symptoms. Yet what is increasingly clear is that their mold-related

illness has nothing to do with toxic substances produced by molds. "

Airborne mold spores, much like pollen, dust or animal dander, trigger

allergic reactions. But mold toxins, however potentially harmful, never get

into the body in high enough levels to cause harm. These mycotoxins,

secreted by a dozen or so mold species, are known to be deadly to animals

that ingest them in large amounts (typically while feeding on stored hay or

grain). The Centers for Disease Control and Prevention (CDC) and the

Environmental Protection Agency (EPA) report that very few cases of toxic

mold inside homes have been shown to cause serious human health problems,

and they usually involve someone who ate very old food laced with toxic

mold.

A September 17, 2002 Washington Post news story on mold reported, " Although

rampant mold growth in these cases may have caused illnesses, scientists

have been unable to show a clear link between some of the more frightening

reported symptoms, such as memory loss and internal bleeding, and breathing

in mold toxins. Three recent reviews of the medical literature found no

support for the claim that toxic mold levels in the home or office can lead

to chronic or life-threatening health problems. These independently funded

reviews were conducted largely to educate health care professionals and

industrial hygienists about mold exposure. A fourth study is now underway by

the Institute of Medicine for the CDC. "

The article did note, " Mold is by no means always benign. The most recent of

the completed reviews, conducted in part by Norman King, an epidemiologist

for a Montreal regional public health board, found a strong association

between mold and respiratory problems, such as exacerbation of asthma.

Scientists cannot rule out the possibility that mold levels cause more

serious problems, King said, but no link has yet been demonstrated. "

Coreen Robbins, an industrial hygienist with Global Tox Inc., a firm based

in Redmond, Wash., says, " Toxins from mold-such as those from an infamous

black mold called Stachybotrys, which is often cited in lawsuits as causing

grave harm to human health-are not readily airborne, and are therefore not

likely to be breathed in. Even if the toxins piggyback on spores, it's

nearly impossible for them to enter the human body in large enough quantity

to cause illness. "

Robbins said that Stachybotrys often grows below floors and behind walls,

and we are unlikely to breathe in its toxins because they cling to mold and

dust particles. The mere presence of toxic mold, according to Robbins, is no

indication that the air contains mycotoxins.

" This is a fairly complex topic, so it is ripe for a bit of bamboozlry, "

Robbins said. Cottage industries have sprung up overnight to test for and

clean up toxic mold. She said newly minted " mold consultants " are

participating in what " is like a huge hoax. " While common sense tells us we

should clean up moldy stuff indoors, Robbins said, removing floorboards,

walls and ducts upon detection of a few Stachybotrys spores is often

unnecessary.

Even if indoor mold in rare cases is harmful, there is the specter of an

epidemic of fraud in mold claims. Jerry s, president of the Austin-based

Southwestern Insurance Information Service, which represents the majority of

the state's property-casualty insurers, stated, " Mold remediation fraud is

rapidly becoming a nationwide problem. "

For example, a Houston federal grand jury earlier this year indicted a local

area contractor-ny Duane Staples, of Baytown, Texas-as heading a group

involving his relatives and associates who perpetrated mold remediation

scams that cost insurers over $7 million dollars as a result of 54 false

claims.

The indictment states that the group would generally buy a two-story home in

a residential neighborhood that they would briefly occupy. On weekends, they

would remove most of the good furnishings and replace them with cheaper

items. The windows would be covered with sheets and the house would be left

to soak for eight-to-10 days, and then a damage report would be made.

The indictment charges that Mr. Staples and his group, acting as contractor

remediators, would then generate false invoices to be given to insurers, and

pay other persons to generate fake documents that went to insurers. Their

activities led to charges of conspiracy, mail fraud and money laundering.

Insurers named as victims included Allstate, Farmers Group, Farmers Mutual

Protective Association, General Star Indemnity Company, Heartland Insurance

Group, sdale, State Farm, Texas Farm Bureau, Mt. Vernon, Republic,

Heartland Lloyds, Horace Mann, Kemper, and Prudential Property and Casualty.

The Houston case is currently set for trial, but has been delayed to allow

plea negotiations.

s commented, " In addition to getting paid for the replacement of

furniture and appliances, these scammers collected for living expenses, and

insurers were charged two or three times what people were actually paying. "

He added, " With a house worth $100,000, an insurer could end up paying two

or three times the cost of a home. "

The mold con artists left dozens of homes in a soggy, mold-covered condition

after the plotters cracked water pipes and turned on garden hoses to create

damage claims. In many mold fraud cases, doors and windows of homes were

sealed up to create a warm environment that cooks up mold.

s notes that insurance company investigators often find remediators who

offer to check homes for mold sometimes intentionally exacerbate existing

mold conditions after persuading residents to leave, or plant mold where it

never existed. Remediators have their own testers who inspect the work, and

frequently the finding is, " Oops, still got mold-have to go to work again. "

Price-gouging contractors will charge insurers five times the norm for

building materials, and hundreds of dollars for protective bio-hazard " moon

suits " made of paper.

s says mold remediation fraud frequently involves repairs that are not

made at all, or for which inflated rates are listed. s said examples of

such scams involve charging for water extraction units that either are not

used or employed for much less time than is charged for.

The growth in mold cases is being fueled by billboards popping up across the

state, which urge homeowners to bring claims.

The problem of lawsuit abuse makes the fraud even more costly. According to

s, adjusters fearing multi-million dollar lawsuits do everything

possible, including settling questionable mold claims, to avoid litigation

and the attendant risk of a huge jury verdict.

Earlier this year, Texas Insurance Commissioner Montemayor started an

investigation into mold fraud, but discussion of the problem has remained

largely absent from the political debate. Moreover, it is Farmers and other

insurers that appear to be the first targets of state legal action.

Fraudulent mold claim remediators should be prosecuted under existing laws

that address fraud and the Texas Deceptive Trade Practices Act.

It is time for Texas politicians in both parties to break the mold and

utilize existing laws, rather than government rate controls, as the solution

for a problem that involves junk science, lawsuit abuse, greed, and fraud.

If policy is dictated by political demagoguery instead of sound science,

economics, and common sense, Texas' insurance industry, a pillar of our

economy, will become the proverbial baby thrown out with the bathwater.

's Coffee Co.

2 Jefferson Square

(off 35th & Kerby Lane)

Austin, TX 78731

(512) 453-1533

Mon-Sat 8:30am-6pm

[Guest guest]

Please remove me from this email list at this time. Thanks Donna Custer

----- Original Message -----

From: bherk@...

Sick Buildings

Sent: Friday, November 01, 2002 6:16 AM

Subject: [] Mold Rush Days

http://www.austinreview.com/articles/2002_10/mold2.htmOctober 31, 2002Mold Rush DaysBy CARL H. TEPPERA home is a man's castle, and every castle needs a moat to dissuadeattackers. In this day and age, instead of a moat the homeowner needsknowledge of current events, a good insurance company, and common sense tofend off the hoards of lawyers and unscrupulous contractors who haveencircled American communities. For years, lawyers and contractors have beenutilizing scare tactics to swindle millions of dollars from homeowners andinsurance companies.The use of junk science to cheat homeowners and insurance companies startedwith the asbestos scare of the 1960's. Even today American cities are filledwith needlessly abandoned buildings because of lawyers, unscrupulouscontractors, and knee-jerk government reaction causing the evacuation offormerly valuable assets. When the lawyers, contractors and politiciansmilked the asbestos issue for all it was worth, they turned to the myth ofradon gas, then radon gas turned into toxic poisoning, then electromagneticwaves (they're coming back again), and now mold.But all is not lost. Scientists and medical experts, who may finally begetting the attention they deserve, are alerting the public that most mold,including allergenic mold, is not nearly as dangerous or pervasive as "moldremediation experts" claim.Gailen Marshall, director of the Division of Allergy and Clinical Immunologyat the University of Texas Medical School in Houston, said, "Mold iseverywhere. For most people, mold is a mostly ignored part of their lives.For some with mold allergies, the smell can cause nasal allergy or evenasthma symptoms. Yet what is increasingly clear is that their mold-relatedillness has nothing to do with toxic substances produced by molds."Airborne mold spores, much like pollen, dust or animal dander, triggerallergic reactions. But mold toxins, however potentially harmful, never getinto the body in high enough levels to cause harm. These mycotoxins,secreted by a dozen or so mold species, are known to be deadly to animalsthat ingest them in large amounts (typically while feeding on stored hay orgrain). The Centers for Disease Control and Prevention (CDC) and theEnvironmental Protection Agency (EPA) report that very few cases of toxicmold inside homes have been shown to cause serious human health problems,and they usually involve someone who ate very old food laced with toxicmold.A September 17, 2002 Washington Post news story on mold reported, "Althoughrampant mold growth in these cases may have caused illnesses, scientistshave been unable to show a clear link between some of the more frighteningreported symptoms, such as memory loss and internal bleeding, and breathingin mold toxins. Three recent reviews of the medical literature found nosupport for the claim that toxic mold levels in the home or office can leadto chronic or life-threatening health problems. These independently fundedreviews were conducted largely to educate health care professionals andindustrial hygienists about mold exposure. A fourth study is now underway bythe Institute of Medicine for the CDC."The article did note, "Mold is by no means always benign. The most recent ofthe completed reviews, conducted in part by Norman King, an epidemiologistfor a Montreal regional public health board, found a strong associationbetween mold and respiratory problems, such as exacerbation of asthma.Scientists cannot rule out the possibility that mold levels cause moreserious problems, King said, but no link has yet been demonstrated."Coreen Robbins, an industrial hygienist with Global Tox Inc., a firm basedin Redmond, Wash., says, "Toxins from mold-such as those from an infamousblack mold called Stachybotrys, which is often cited in lawsuits as causinggrave harm to human health-are not readily airborne, and are therefore notlikely to be breathed in. Even if the toxins piggyback on spores, it'snearly impossible for them to enter the human body in large enough quantityto cause illness."Robbins said that Stachybotrys often grows below floors and behind walls,and we are unlikely to breathe in its toxins because they cling to mold anddust particles. The mere presence of toxic mold, according to Robbins, is noindication that the air contains mycotoxins."This is a fairly complex topic, so it is ripe for a bit of bamboozlry,"Robbins said. Cottage industries have sprung up overnight to test for andclean up toxic mold. She said newly minted "mold consultants" areparticipating in what "is like a huge hoax." While common sense tells us weshould clean up moldy stuff indoors, Robbins said, removing floorboards,walls and ducts upon detection of a few Stachybotrys spores is oftenunnecessary.Even if indoor mold in rare cases is harmful, there is the specter of anepidemic of fraud in mold claims. Jerry s, president of the Austin-basedSouthwestern Insurance Information Service, which represents the majority ofthe state's property-casualty insurers, stated, "Mold remediation fraud israpidly becoming a nationwide problem."For example, a Houston federal grand jury earlier this year indicted a localarea contractor-ny Duane Staples, of Baytown, Texas-as heading a groupinvolving his relatives and associates who perpetrated mold remediationscams that cost insurers over $7 million dollars as a result of 54 falseclaims.The indictment states that the group would generally buy a two-story home ina residential neighborhood that they would briefly occupy. On weekends, theywould remove most of the good furnishings and replace them with cheaperitems. The windows would be covered with sheets and the house would be leftto soak for eight-to-10 days, and then a damage report would be made.The indictment charges that Mr. Staples and his group, acting as contractorremediators, would then generate false invoices to be given to insurers, andpay other persons to generate fake documents that went to insurers. Theiractivities led to charges of conspiracy, mail fraud and money laundering.Insurers named as victims included Allstate, Farmers Group, Farmers MutualProtective Association, General Star Indemnity Company, Heartland InsuranceGroup, sdale, State Farm, Texas Farm Bureau, Mt. Vernon, Republic,Heartland Lloyds, Horace Mann, Kemper, and Prudential Property and Casualty.The Houston case is currently set for trial, but has been delayed to allowplea negotiations.s commented, "In addition to getting paid for the replacement offurniture and appliances, these scammers collected for living expenses, andinsurers were charged two or three times what people were actually paying."He added, "With a house worth $100,000, an insurer could end up paying twoor three times the cost of a home."The mold con artists left dozens of homes in a soggy, mold-covered conditionafter the plotters cracked water pipes and turned on garden hoses to createdamage claims. In many mold fraud cases, doors and windows of homes weresealed up to create a warm environment that cooks up mold.s notes that insurance company investigators often find remediators whooffer to check homes for mold sometimes intentionally exacerbate existingmold conditions after persuading residents to leave, or plant mold where itnever existed. Remediators have their own testers who inspect the work, andfrequently the finding is, "Oops, still got mold-have to go to work again."Price-gouging contractors will charge insurers five times the norm forbuilding materials, and hundreds of dollars for protective bio-hazard "moonsuits" made of paper.s says mold remediation fraud frequently involves repairs that are notmade at all, or for which inflated rates are listed. s said examples ofsuch scams involve charging for water extraction units that either are notused or employed for much less time than is charged for.The growth in mold cases is being fueled by billboards popping up across thestate, which urge homeowners to bring claims.The problem of lawsuit abuse makes the fraud even more costly. According tos, adjusters fearing multi-million dollar lawsuits do everythingpossible, including settling questionable mold claims, to avoid litigationand the attendant risk of a huge jury verdict.Earlier this year, Texas Insurance Commissioner Montemayor started aninvestigation into mold fraud, but discussion of the problem has remainedlargely absent from the political debate. Moreover, it is Farmers and otherinsurers that appear to be the first targets of state legal action.Fraudulent mold claim remediators should be prosecuted under existing lawsthat address fraud and the Texas Deceptive Trade Practices Act.It is time for Texas politicians in both parties to break the mold andutilize existing laws, rather than government rate controls, as the solutionfor a problem that involves junk science, lawsuit abuse, greed, and fraud.If policy is dictated by political demagoguery instead of sound science,economics, and common sense, Texas' insurance industry, a pillar of oureconomy, will become the proverbial baby thrown out with the bathwater.'s Coffee Co.2 Jefferson Square(off 35th & Kerby Lane)Austin, TX 78731(512) 453-1533Mon-Sat 8:30am-6pmFAIR USE NOTICE:This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. 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