Arrests for January/February 2001
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
CAUGHT!
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JANUARY 2001
- GUILTY PLEA IN STAGED ACCIDENT
CASE
The owner of a Long Island auto repair business pled guilty on 1/2/01 to a five-count indictment charging him with insurance fraud in the 3rd degree, attempted grand larceny in the 3rd degree and conspiracy in the 5th degree for his role in staging accidents in the parking lot of his business. He admitted filing false claims totaling more than $47,000 with two insurers. His arrest on 6/27/00 was the result of an investigation by the Frauds Bureau and Suffolk County Police Department.
- IS IT FLOYD OR FRAUD?
Arrested on 1/31/01
Charged with insurance fraud in the 3rd degree
An upstate resident is charged with submitting fraudulent receipts totaling $8,845 to her homeowners insurer for furniture she said was damaged in 1999 by Hurricane Floyd. An investigation by the Frauds Bureau revealed that the three furniture stores from which she allegedly received the receipts do not exist. Moreover, the post office in New Jersey has no record of the addresses listed for the retailers and the 973 area code listed for one of the stores was not in effect at the time of the alleged purchase.
- EX-WIFE’S CAR EXCHANGED
FOR DRUGS
Arrested on 1/24/01
Charged with insurance fraud in the 3rd degree and falsifying business records in the 1st degree
An unemployed dental assistant is accused of taking his ex-wife’s car without her knowledge or permission and "exchanging" it for drugs. His ex-wife believed her car had been stolen and asked for the defendant’s assistance in filing a claim with her insurer. He provided the assistance, knowing that the claim was fraudulent. During an investigation by the Frauds Bureau, the Dutchess County Sheriff’s Department and Progressive Insurance Company, the defendant was found to be incarcerated in the Dutchess County Correctional Facility on unrelated charges. Upon his release, he was arrested on the fraudulent claim charge.
- THE BOYFRIEND
Arrested on 1/24/01
Charged with insurance fraud in the 3rd degree and conspiracy in the 4th degree
The boyfriend in this case was charged with accessory to commit insurance fraud and conspiracy to commit arson in connection with an auto insurance claim submitted by his girlfriend to her insurer.
- THE GIRLFRIEND
Arrested on 1/18/01
Charged with insurance fraud in the 3rd degree
The girlfriend reported her car stolen on 4/26/00 and submitted a claim for $22,000. The car was later recovered, totally burned. An investigation conducted by the Frauds Bureau, the New York State Police and the Buffalo Police Department uncovered evidence that this couple conspired with "others" to have the car stolen and burned in order to collect the insurance settlement. The girlfriend was arrested and charged for her part in the scam. The investigation in continuing in connection with the "others" involved.
- WORKERS’ COMP CHEATER
Arrested on 1/18/01
Charged with criminal possession of a forged instrument
A self-employed contractor from Rochester on three occasions allegedly altered and submitted certificates of insurance to indicate that he had workers’ compensation and other insurance coverages when in fact he had none. He submitted the certificates of insurance to a contractor in order to obtain work on various projects without securing the appropriate insurance. His arrest was the result of an investigation conducted by the Frauds Bureau and the Monroe County Sheriff’s Office.
- DOUBLE-DEALING DUO
Arrested on 1/16/01
Charged with grand larceny in the 3rd degree
- A student, while employed at a Manhattan health clinic, submitted eight medical claims totaling $11,730 during March-May 1999 for services purportedly rendered by her employer. However, an investigation by the Frauds Bureau and the NYPD revealed that the medical services allegedly were never rendered. As a result of the fraudulent claims, she received $3,954 in undeserved reimbursement.
Charged with grand larceny in the 4th degree
- A Bronx resident, employed at the same Manhattan health clinic, submitted claims in the amount of $7,900 between March and May 1999 for medical services she stated were provided by her employer. She subsequently received $2,303 for services that allegedly were never provided. The arrest was the result of an investigation by the Frauds Bureau and the NYPD.
- ONE, TWO, THREE, YOU’RE
OUT
Arrested on 1/11/01
Charged with grand larceny in the 2nd degree
An investigation conducted by the Frauds Bureau and the Nassau County District Attorney’s Office led to the arrest of a Long Island man accused of submitting fraudulent claims to two health insurers for the services he received from doctors who participated in a health service plan of which he was a member. This defendant had health insurance coverage with three insurers, each of which was unaware of the existence of the others. In a typical scenario, he would visit a physician who participated in his health service provider’s plan and pay the required co-pay. The health service plan would pay the physician directly for the services provided. The defendant would convince the doctor’s office that he needed a copy of the bill for tax purposes or some other pretext. He would then alter the bill to indicate that he, not the health service plan, had paid the doctor, and submit the altered bill to the other two insurers with whom he had coverage. In some instances, he used his computer to produce duplicate bills and again submitted these phony bills to the two unwitting insurers. As a result of these fraudulent claims, he received $190,970 to which he was not entitled.
- SECRETARY POCKETS PREMIUMS
Arrested on 1/10/01
Charged with scheme to defraud
A secretary for a Long Island insurance brokerage is accused of collecting more than $3,000 in auto insurance premium payments but failing to forward it to the appropriate insurer. The insurer began to get complaints from customers that their policies had been cancelled for nonpayment of premium. However, the customers had receipts for the payments they had made in cash to the defendant. The insurer brought the matter to the attention of the Nassau County District Attorney’s Office who conducted the investigation with the assistance of the Frauds Bureau.
- DEER, DEER
Arrested on 1/9/01
Charged with insurance fraud in the 4th degree
A teacher from upstate New York is charged with attempting to defraud her auto insurer of more than $1,000. On December 20, 1999, she was involved in an accident in which her car overturned. When she reported to her insurance agent that the accident was caused by slippery roads, the agent informed her that since she had dropped the collision coverage from her policy, the accident would not be covered. The defendant, after learning that an accident involving a deer would be covered even without collision coverage, allegedly changed her story and reported that the accident involved a deer. Her arrest is the result of an investigation by the Frauds Bureau and the New York State Police.
- GAMING THE WORKERS’ COMP SYSTEM
Arrested on 1/5/01
Charged with insurance fraud in the 2nd degree
This defendant submitted a signed statement stating that he was not working when in fact he was. The fraudulent statement allowed him to collect more than $50,000 in workers’ compensation benefits to which he was not entitled. The investigation was conducted by the Frauds Bureau and the Suffolk County District Attorney’s Office.
FEBRUARY 2001
- REVOKED BROKER BUSTED
Arrested on 2/27/01
Charged with criminal possession of a forged instrument, forgery and insurance fraud
A joint undercover operation by the Frauds Bureau and the NYPD Auto Crime Division led to the arrest of a former insurance broker on charges that he was engaged in the sale of phony auto insurance identification cards. A Frauds Bureau investigator, working undercover, visited the office of this revoked broker and requested an identification card. A broker usually provides a temporary card to be used to register the vehicle, as well as a permanent card in case the car is stopped by the police. The broker quoted a price of $600 and the investigator purchased the cards. The investigation later revealed that there was no policy providing coverage for the investigator’s car. The broker was arrested at his place of business and a search warrant was executed. Evidence was obtained showing that he had issued at least 56 other fraudulent cards, netting him $33,600 in illegal proceeds. In an interesting endnote, the broker himself was driving without insurance (his vehicle has been impounded). In addition, to lend credence to his operation, he had on display a broker’s license with current effective dates. However, the license listed the name of a former Superintendent of Insurance who left the Department in December 1996.
- HOME IMPROVEMENTS
Arrested on 2/26/01
Charged with falsifying business records, insurance fraud and attempted grand larceny
An investigation by the Frauds Bureau and the Putnam County District Attorney’s Office led to the arrest of an unemployed Brewster woman on charges that she altered an invoice estimating the cost of repairs to her home and submitted the altered invoice to her homeowners insurer. She changed the actual estimate – $18,800 – so that it appeared to be $28,800. The contractor that provided the estimate verified that the invoice had been altered.
- GROUNDS FOR ARREST
Arrested on 2/15/01
Charged with insurance fraud in the 4th degree
The suspect in this case, while allegedly holding down two jobs – one at Real Top Soil and another at Troy Sand & Gravel – collected workers’ compensation benefits to which he was not entitled. He is accused of giving false statements indicating that he was not engaged in any employment. The arrest was made by the Frauds Bureau and the Saratoga County Sheriff’s Department, following an investigation by the Frauds Bureau and the State Insurance Fund.
- DON’T HIT A POLICE CAR
Arrested on 2/14/01
Charged with insurance fraud in the 4th degree and leaving the scene of a property damage accident
This defendant is accused of hitting a parked Mechanicville police car and leaving the scene without reporting the accident. The following day, she submitted a claim to her insurer stating her car had been involved in a hit-and-run accident while parked in a nearby supermarket parking lot. Her arrest was the result of an investigation by the Frauds Bureau, the Mechanicville Police Department and Progressive Insurance Company.
- FRAUDULENT WORKERS’ COMP CLAIM
Arrested on 2/6/01
Charged with committing a fraudulent practice under the New York State Workers’ Compensation Law
This suspect is accused of submitting a false statement on a claim for workers’ compensation benefits. She stated that she was not working when she allegedly was employed at the time. An investigation by the Frauds Bureau, with the assistance of the Otsego County District Attorney’s Office and the Otsego County Sheriff’s Department, led to her arrest.
- ALL WRAPPED UP
Arrested on 2/1/01
Charged with committing a fraudulent practice under the New York State Workers’ Compensation Law
A bartender from Binghamton was arrested for falsely claiming he was not employed in order to collect workers’ compensation benefits to which he was not entitled. He pled guilty to attempting to commit a fraudulent practice and was sentenced to one year conditional discharge, restitution of $1,000 to the State Insurance Fund and forfeiture of any future benefits regarding his workers’ compensation claim. The Frauds Bureau was assisted in the investigation by the State Insurance Fund and the Broome County Sheriff’s Department.
- SWEEP NETS UNLUCKY 13
Arrested on 2/1/01
Charged with insurance fraud, workers’ compensation fraud, falsifying business records and welfare fraud
An arrest sweep in Rensselaer County captured 13 suspects charged with various counts of insurance and welfare fraud. The operation was a cooperative effort coordinated by the Frauds Bureau and the Rensselaer County District Attorney’s Office. The Workers’ Compensation Board, the State Police and the Troy, East Greenbush and Rensselaer police departments also participated in the sweep. Among those arrested were the following:
- A Colonie man is accused of collecting more than $20,000 in total disability benefits. During the same time period, however, he was allegedly working as the owner of a moving company that earned nearly $200,000.
- A Troy resident is charged with claiming total disability while working as a bartender in order to collect $12,000 in workers’ compensation benefits.
- A Troy woman allegedly collected welfare day care assistance for her son who was in a secure detention facility at the time.
- An Albany resident is accused of submitting inflated theft claims in a scheme to defraud her insurer.
- A Troy man is charged with forging documents claiming that his business had workers’ compensation insurance when in fact it did not.
