Arrests for June 2000
These arrests were made possible through the cooperation of the Frauds Bureau, law enforcement, the insurance industry and the public.
To report suspected incidents of insurance fraud, call 1-888-FRAUDNY
GUILTY PLEA IN CEREBRAL PALSY TRANSPORT CASE
Anthony Callicchio, owner of General Auto Glass Repair, was sentenced to three years probation on 6/5/00 and ordered to make full restitution, after pleading guilty to defrauding the insurers for Cerebral Palsy Transport of more than $35,000. Cerebral Palsy Transport is the transportation arm of United Cerebral Palsy of New York State. Callicchio, who was arrested on 4/18/00, used access to vehicle and insurance information to submit phony claims directly to the insurers for windshield and side-window replacement in CPT buses and vans. Callicchio was sentenced to pay $20,000 in restitution immediately and the balance over his three-year probation period. An investigation by the Frauds Bureau, the Richmond County District Attorneys Office and the insurers Special Investigations Unit uncovered the fraud.
BOOKKEEPER FILES $48,000 IN FRAUDULENT MEDICAL CLAIMS
Bronx Woman Arrested on 6/29/00.
Charged with insurance fraud in the 3rd degree, falsifying business records in the 1st degree and forgery in the 2nd degree.
The defendant is charged with submitting fraudulent medical claims in the amount of $48,385 while she was employed as a bookkeeper in a doctors office. The claims, submitted between February 1991 and September 1999, falsely contend that she was given various medical treatments by her employer for which she received more than $41,000 in benefits from her insurer.
INSURANCE BROKER CHARGED WITH RENTAL CAR FRAUD
Wantagh Broker Arrested on 6/27/00.
Charged with insurance fraud in the 2nd and 3rd degrees, falsifying business records in the 1st degree and scheme to defraud in the 1st degree.
A New York State-licensed insurance broker was charged with misrepresenting policies he placed for a car rental agency and defrauding 16 insurers of earned premium of more than $1 million. Acting with the owners of two car rental agencies, the broker set up bogus corporations and registered the rental cars as though they were being driven by employees of those fake companies. This allowed the owners of the car rental agency to secure lower premiums on vehicles used in the car rental fleet. The owners of the car rental agency were previously arrested on similar charges.
Operation Goldbrick II NETS 17
Long Island Residents Arrested on June 20-June 22.
Charged with insurance fraud, workers compensation fraud and criminal possession of a forged instrument.
A six-month investigation yielded 17 arrests in a sweep conducted between June 20 and June 22. These 17 defendants were receiving workers compensation benefits under false pretenses. Investigators used videotape surveillance to collect evidence which showed that one of the defendants was employed as a topless dancer at a local club. The defendants in other cases were shown performing heavy lifting and construction work, while claiming that their injuries prevented them from working. The investigation was conducted jointly by the Frauds Bureau, the Suffolk County District Attorneys Office, the State Insurance Fund, the Workers Compensation Board and the National Insurance Crime Bureau. More arrests are expected.
ARREST COMPLETES TRIO
Commack Man Arrested on 6/21/00.
Charged with attempted grand larceny in the 3rd degree.
The defendant, together with two co-conspirators, is alleged to have submitted fraudulent claims to a number of insurers over a three-year period. The trio contended that their cars were vandalized at various train station parking lots across Long Island and that stereo equipment and other interior parts were stolen. A joint investigation by the Frauds Bureau and the Nassau County District Attorneys Office revealed that they had submitted the same bogus receipts to three different insurers to substantiate claims totaling more than $20,000. The two co-conspirators have already been arrested.
FRAUDULENT DEATH CLAIMS TOTAL CLOSE TO $3 MILLION
Staten Island Man Arrested on 6/20/00.
Charged with two counts of grand larceny in the 2nd degree, attempted grand larceny in the 1st degree, criminal possession of a forged instrument, criminal possession of stolen property and forgery.
The charges in this case allege that the defendant purchased several insurance policies on his own life, naming a person with the same surname who he claimed was his brother as beneficiary. The defendant, falsely representing himself as his brother, submitted claims to these insurers indicating that the policyholder had died in an automobile accident in Haiti. The defendant submitted a false death certificate and police report. However, the insurance companies were unable to find any police reports or hospital records in Haiti confirming the death. Investigators from the Frauds Bureau and the Staten Island District Attorneys Office conducted the investigation that led to the arrest. Whether the two men knew one another is not clear but the man purported to be the brother was not charged.
CASH FOR JACKED-UP REPAIR ESTIMATE
Brooklyn Man Arrested on 6/20/00.
Charged with criminal bribery and criminal solicitation.
This owner of an auto body shop is accused of offering a bribe to an insurance adjuster (who is in reality an undercover investigator) in exchange for an inflated repair estimate. The Frauds Bureau and the Brooklyn District Attorneys Office worked closely with the insurance company on this case.
SUCCESSFUL STAGED ACCIDENT INVESTIGATION
Long Island Residents Arrested on 6/16/00.
Charged with two counts of insurance fraud in the 3rd degree, two counts of grand larceny in the 3rd degree and one count of attempted grand larceny in the 3rd degree.
A joint investigation by the Frauds Bureau and the Suffolk County Auto Squad led to the arrest of two Long Island men alleged to be involved in a staged accident scheme to defraud numerous insurers. One of the defendants submitted a claim for more than $7,500 for repairs to his car. An investigation revealed that he had submitted two prior claims for the identical damage and had received more than $25,000. The second defendant, a body shop employee, is accused of attaching damaged parts to vehicles and then submitting claims for repairs. Once the claims were paid, the damaged parts were removed for use in subsequent claims. Additional arrests are expected pending a grand jury investigation.
INVESTIGATION LEADS TO LICENSED PRACTICAL NURSE
Rochester Woman Arrested on 6/15/00.
Charged with insurance fraud in the 2nd degree and grand larceny in the 2nd degree.
A licensed practical nurse has been charged with submitting fraudulent claims for nursing services from February 1993 to September 1996. During the period, the insurer paid out over $166,000 in claims, of which more than $89,000 involved false information and inaccurate billing facts. The arrest was the result of a joint investigation by the Frauds Bureau, the Rochester Police Department and the defrauded insurer.
STING TARGETS INSURANCE "GIVE UPS"
18 Arrested on 6/14/00.
Charged with insurance fraud in the 3rd degree.
An undercover sting investigation led to the arrests of 18 people for allegedly claiming that their cars were stolen when in fact they had given them up to a chop shop for dismantling. The chop shop was run by members of the NYPD Auto Crime Division who conducted the investigation jointly with the Departments Frauds Bureau and the Queens District Attorneys Office. Ten insurers were defrauded of more than $260,000 in this scheme which was part of a larger investigation that resulted in the arrest last January of Carmine Agnello, a member of the Gambino organized crime family.
TOTALED CAR STRIPPED FOR PARTS
Queens Man Arrested on 6/12/00.
Charged with insurance fraud in the 3rd degree, grand larceny in the 3rd degree and auto stripping in the 3rd degree.
After an insurance adjuster determined that a car with extensive rear-end damage was a total loss, the owner of the body shop stripped it of the front end and airbags which together were worth more than $7,000. When the owner of the car returned to the shop to retrieve some personal items, he discovered the missing parts. The investigation was conducted by the NYPD Auto Crime Division and the Frauds Bureau.
STAGED ACCIDENT SCAM HITS BUMP
Brooklyn Resident Arrested on 6/6/00.
Charged with mail fraud and insurance fraud.
The defendant, using vehicles he allegedly registered in Massachusetts in his name and the names of others, staged accidents in the New York City area. The occupants of the vehicles would claim injuries and report to medical facilities that were operated by providers who were part of the scheme. These providers would then file claims for unnecessary medical tests or services never rendered and bill the insurance companies of those to whom the cars had been fraudulently registered.
INVESTIGATION UNCOVERS THEFT OF $180,000 IN PREMIUMS
Rochester Resident Arrested on 6/2/00.
Charged with grand larceny in the 2nd degree.
The subject in this case was employed as an office manager for an insurance agency. The charges against her allege that from March 1996 to October 1998, she diverted customer premiums totaling more than $180,000 to an operating account and used the funds for her personal use. When an insurer audit revealed that the funds did not appear in the premium account, an investigation was initiated by the Frauds Bureau, the Irondequoit Police Department and the insurer.
AUTO ARSON SUSPECTED
Spring Valley Resident Arrested on 6/1/00.
Charged with insurance fraud in the 4th degree and arson in the 4th degree.
The defendant is accused of setting his car on fire and then reporting it stolen to the Ramapo Police Department and his insurer. An investigation by the Frauds Bureau revealed the defendant had been having ongoing mechanical problems with his car and at one point, he had to have the vehicle towed. The car was subsequently found burning, apparently the result of an arson fire. During an interview, the defendant made statements that led to his arrest.