Shoes on Melrose


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Barry Zalma, Esq., CFE presents videos so you can learn how insurance fraud is perpetrated and what is necessary to deter or defeat insurance fraud. 


How Avoiding Taxes Can Cost a Merchant


It was a successful, trendy, shoe store on Melrose Avenue, West Hollywood, California. Stocked with electric yellow combat boots and pink platform shoes his was the most popular shoe store on the Avenue. The beautiful people provided a good income for Albert Benvenitti, the owner.


Albert fought back against high taxes in the only way he could, he didn’t record every cash sale. The shoes sold for cash simply stayed on his inventory sheet as unsold merchandise. By putting the cash sales in his pocket his profit margin — on the books — went down but the real money he took home increased. By fighting the government, he reduced his tax burden from 50 to 30% of the true net income.


When he became the victim of a burglary his books failed to show the inventory he actually lost.


Avoiding Taxes Destroyed a Legitimate Insurance Claim


Although Benvenitti knew that he lost — from his first-hand knowledge of the business — more than $30,000 in shoes he agreed to a $5,000 settlement and promised to cancel his policy and never insure with that insurer again.


He learned an important lesson: it does not pay to lie to the IRS and that it is important to keep accurate business records.


Benvenitti was pleasantly surprised that he was not prosecuted.


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Over the last 54 years Barry Zalma has dedicated his life to insurance, insurance claims and the need to defeat insurance fraud. He has created a library of books and other materials to make it possible for insurers and their claims staff to become insurance claims professionals.


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