McMaster, speaking to about 50 participants at the S.C. Insurance Fraud Investigators annual training meeting, said budget cuts have left the state with one prosecutor and two State Law Enforcement Division agents dedicated to a crime that industry estimates peg at $80 billion a year nationally.

Despite criticism from some in the industry who argue that isn't enough manpower to adequately fight fraud, McMaster said his staff is making meaningful prosecutions with the $301,247 budgeted for the state's fraud division.

"We are not short on talent. We are not short on determination," McMaster said. "We are short on money."

McMaster's comments underscore the challenge states nationwide face in fighting insurance fraud, which has risen by about 61 percent in the past five years in the Palmetto State. Last year, there were 844 complaints, totaling about $3.7 million in estimated losses.

To better fight fraud, nearly a dozen lawmakers, supported by the attorney general's office, introduced a bill last year that called for toughening penalties, creating a civil enforcement unit under the Department of Insurance and assessing carriers to help cover the cost of hiring more investigators and prosecutors. That bill, which died after industry infighting, is expected to be reintroduced in January.

"Criminal prosecution is the only thing some people understand," McMaster said. "Without effective investigation and prosecution, we are toothless."

The state insurance fraud division isn't the only area having to do more with less. McMaster pointed out that his high-profile dogfighting task force is paid for through a $100,000 a year private fund-raising effort led by the John Ancrum SPCA and local attorney and task force member Sandy Senn. He said his office also has recruited about 50 private practice lawyers to volunteer time to fight domestic violence, a move he said could be mirrored by lawyers within the insurance industry.

"This is making a difference, and it is not costing taxpayers," McMaster said. "Solicitors don't have the money. We don't have the money. No one has the money."

Assistant Attorney General Jason Peavy, who is the prosecutor in the division, said the investigators work long hours and often on weekends to juggle large caseloads. Last year, there were 627 open cases with a total of 622 under investigation by SLED. "They have to be efficient," he said of the agents. "They have more cases than any other SLED agent in the state."

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