Arrests for June 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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- GUILTY PLEAS
- The defendant in this case pled guilty to insurance fraud in the 5th degree on 6/14/01. The case goes back a year when on 6/22/00, he reported to the Rochester Police Department that his car had been stolen. The Rochester Police Department refused to file a report of theft because they suspected that the defendant had given his car up in exchange for drugs. On 6/27/00, he informed his insurer that the car had been stolen but neglected to tell the insurer that he had been unable to get a police report because of his admission that he had traded his car for drugs. Without a police report, the insurer would not proceed with the case. So the next day, 6/28, the suspect contacted the Rochester Police Department again. This time he signed affidavits stating that he had given his car up for drugs and that he would testify against the drug dealer if the dealer were caught. The police department issued a police report. The car was recovered on 7/6 and the insurance company adjuster appraised damages in the amount of $3,550. The suspect filed a claim for reimbursement. And in spite of the fact that the police report contained his statement admitting that he had willingly given up his car in exchange for drugs, he continued to insist to his insurer that his car had been stolen by a person unknown to him: the first time in a tape recorded statement on 7/6; the second time in a signed affidavit on 7/19; and a third time on 7/24 when his insurer asked him point blank if he had traded the car for drugs and he answered no. The defendant was arrested by a Frauds Bureau investigator with the assistance of a member of the Greece Police Department. Sentencing is scheduled for 8/22/01.
- On 6/14/01, the owners of an upstate auto glass shop pled guilty to falsifying business records in the 1st degree and criminal facilitation in the 4th degree in a Frauds Bureau case dating back to 1999. Using their repair shop, the couple defrauded several large insurance companies by billing for features not installed on customers’ cars. The husband faces five years’ probation in addition to a fine of up to $5,000 and restitution of $6,500. The wife could be fined up to $1,000.
- BUY, BUY, BABY
Arrested on 6/29/01
Charged with criminal possession of forged instruments, tampering with public records, insurance fraud and criminal facilitation
A joint investigation by the Frauds Bureau and the NYPD led to the arrest of a licensed insurance broker on charges of selling fraudulent insurance identification cards. On two separate occasions, an undercover agent was provided with license plates, registration, a ten-day inspection sticker and a fraudulent insurance card at a cost of $270 per buy. A search warrant was obtained for the defendant’s place of business and among the items seized was a broker’s license in the defendant’s name, one in the name of his business and a third in the alias he used; a loaded .38 caliber revolver, 433 vehicle titles, 244 vehicle registrations; 10 registrations with plates and fraudulent ID cards; a $50 bill used in one of the buys and other miscellaneous documents. If convicted, he faces up to 14 years in prison.
- CONTRACTOR CHARGED
Arrested on 6/20/01
Charged with insurance fraud in the 3rd degree and attempted grand larceny in the 3rd degree
A Buffalo contractor was arrested on charges that he submitted a fraudulent affidavit of loss to an insurer for damage and subsequent loss of use of construction equipment. The arrest was the result of an investigation by the Frauds Bureau with the assistance of the Buffalo Police Department.
- STAGED ACCIDENTS
Arrested on 6/14/01
Charged with mail fraud and medical fraud
An investigation conducted by the Frauds Bureau and the FBI led to the arrest of this defendant who is accused of conspiring with others to stage auto accidents in an attempt to defraud various insurers by compiling large medical bills for injuries that were nonexistent.
- RUGS CLAIMED TWICE
Arrested on 6/8/01
Charged with insurance fraud in the 3rd degree, attempted grand larceny in the 3rd degree, falsifying business records in the 1st degree and making a punishable false written statement
The subject in this case submitted a claim to Nationwide Insurance Company for water-damaged oriental rugs valued at $24,800. However, an investigation by the Frauds Bureau and the Onondaga County District Attorney’s Office revealed that he had previously submitted a claim to State Farm Insurance Company for the same rugs and had been reimbursed.
- A TRIO OF CHEATERS
Arrested on 6/6/01
Charged with attempted grand larceny in the 1st degree, perjury in the 1st and 2nd degrees, filing a false instrument and making a false statement
An investigation by the Frauds Bureau, the Manhattan District Attorney’s Office and the New York City Department of Investigations led to the arrest of three individuals for their involvement in a no-fault insurance fraud scheme. They are accused of trying to cheat New York City out of $3 million by falsely claiming they had been seriously injured in a collision with a Fire Department Ladder Truck. The investigation revealed that one of the defendants was driving alone when the accident occurred. However, he later falsely claimed that his wife and another woman were in the car when he collided with the Ladder Truck. The other two defendants also allegedly lied on several occasions, stating that they were in the car at the time of the accident. The three received medical treatment exceeding $38,000.
PRIOR SUPPLEMENTS
May 2001
- BOGUS WORKERS’ COMP CLAIM
Arrested on 5/30/01
Charged with committing a fraudulent practice
The Frauds Bureau, the State Insurance Fund and the Broome County Sheriff’s Office joined forces in the investigation of a man accused of making false statements to the State Insurance Fund and collecting $18,000 in workers’ compensation benefits to which he was not entitled.
- A HOUSE IS NOT A HOME
Arrested on 5/29/01
Charged with insurance fraud in the 3rd degree and attempted grand larceny
An upstate man was the occupant of a house in Buffalo in April 2000 when an accidental fire caused $21,000 in damages. He was a prior owner of the house and filed a claim under a policy that he had obtained while he was the homeowner. However, an investigation by the Frauds Bureau and the insurer involved revealed that he had sold the house in November 1999, well before the fire occurred. The true owner of the house was unaware of the defendant’s attempt to collect insurance benefits for a loss at his property.
April 2001
- CAR SOLD, THEN "STOLEN"
Arrested on 4/13/01
Charged with insurance fraud in the 3rd degree
On 11/24/00, a Poughkeepsie woman sold her car to an auto dealer for $7,500. A few days later, she reported to the NYPD that her car had been stolen from a Manhattan street on 11/30/00. The defendant later filed a sworn affidavit with her insurer claiming the theft of her car valued at $12,500. An investigation by the Frauds Bureau led to her arrest.
