Arrests for September 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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- WORKERS’ COMP SCAM
Arrested on 9/25/01
Charged with insurance fraud in the 3rd degree, fraudulent practices and falsifying business records in the 1st degree
An upstate man was accused of submitting a fraudulent Application for Additional Payment to his insurer in support of an ongoing workers’ compensation claim. As a result of the false information contained in the Application, he received more than $8,000 in benefits to which he was not entitled. An investigation by the Frauds Bureau, the New York State Police, the Workers’ Compensation Fraud Inspector General’s Office and the insurer’s Special Investigations Unit led to his arrest.
- LIGHTENING STRIKES
Arrested on 9/21/01
Charged with insurance fraud in the 4th degree
The defendant in this case reported to his insurer that lightening caused a power surge to damage his furnace, television set and computer. He submitted a receipt for $2,017 for repair of the furnace as well as a handwritten document from an electronic equipment service store stating that the television and computer were not worth repairing. However, an investigation by the Frauds Bureau and the New York State Police revealed that the furnace was repaired for $175 and the electronic equipment service business did not exist.
- A FAMILY AFFAIR
Arrested on 9/18/01
Charged with insurance fraud, criminal possession of a forged instrument and grand larceny
A two-year investigation conducted jointly by the Frauds Bureau, the Oswego County District Attorney’s Office and the Oswego County Sheriff’s Department led to the arrest of a family of five accused of defrauding an insurance company of more than $40,000 in medical and disability benefits. The parents and their three grown children allegedly forged the signature of a physician on claim forms, submitted the forms to their insurer and collected the benefits to which they were not entitled. If they are convicted, each family member faces up to five-to-seven years in prison on each count.
- WHO’S DRIVING THE CAR?
Arrested on 9/17/01
Charged with offering a false instrument for filing in the 1st degree and workers’ compensation fraud
An upstate man was charged with submitting fraudulent documents to Delaware County for mileage traveled for weekly chiropractic visits in connection with a workers’ compensation claim with the County, a self-insurer. An investigation by the Frauds Bureau, the Delaware County Sheriff’s Office and the Delaware County District Attorney’s Office revealed that the defendant was the passenger of another person who also made weekly visits to the chiropractor in connection with his own workers’ compensation claim. The defendant, however, submitted the claims as if he were the driver and had incurred the related travel expenses.
- THIS IS BUSINESS?
Arrested on 9/17/01
Charged with 17 felony counts including arson, using fire to commit a felony, mail fraud, bank fraud and wire fraud
The defendant in this case was accused of fraudulently obtaining liability insurance for his manufacturing business and later causing a fire that destroyed the business. He defrauded his insurer of $323,700 in damages to the property. Among the other charges against the defendant are changing the name of his business to defraud its creditors, using a false name to engage in mail fraud and engaging in a pattern of fraudulent conduct at his business in the years before the fire. He faces decades in prison and $1 million in fines if he is convicted. The investigation was conducted by the Frauds Bureau, the Broome County Sheriff’s Office, the Broome County Bureau of Fire Investigation and the U.S. Attorney’s Office.
- THREE CAR MONTE
Arrested on 9/12/01
Charged with criminal possession of a forged instrument in the 2nd degree, grand larceny in the 4th degree, insurance fraud in the 4th degree and falsifying business records in the 1st degree
An investigation by the Frauds Bureau, the Syracuse Police Department and the Town of Geddes Police Department resulted in the arrest of two men employed in the body shop of a Syracuse car dealership. The investigation revealed that a 2001 Monte Carlo rented by one of the employees was hit by a second car while parked, causing heavy damage. The charges allege that this employee, in concert with a co-worker, repaired the damage without the knowledge of the dealership. The vehicle was then returned without informing the rental car company of the accident. Both defendants then reported to the insurer of the car that had hit the 2001 Monte Carlo that it was actually a 1993 Plymouth Duster that had been hit. They filed a claim for damages to the Duster in the name of the owner without his knowledge and a check for $1,400 was issued. The check was cashed bearing a forged signature.
- LARGEST INSURANCE FRAUD CASE
IN SUFFOLK COUNTY HISTORY
Indicted on 9/11/01
Charged with enterprise corruption, insurance fraud, grand larceny, falsifying business records and money laundering
A 129-count indictment charged nine individuals and four business in a criminal enterprise that staged accidents, created "paper" accidents and enhanced damage claims, primarily involving motorcycles. In a typical scenario, a person known as a "hitter" would report that he had an accident with a "claimant." i.e., the person who would submit a claim for payment. The hitter would accept full responsibility for the accident. Then the defendants would put damaged parts on the claimant’s motorcycle and submit false repair bills, estimates and towing and storage receipts. In some cases actual damage was caused to the motorcycles. The investigation uncovered over 200 suspicious claims involving payments by insurers of approximately $2 million. More than 140 arrests have been made so far in this ongoing investigation which is the largest insurance fraud case in Suffolk County history.
- BOGUS POLICE REPORT
Arrested on 9/7/01
Charged with insurance fraud in the 5th degree
A Brooklyn resident, along with three others, was accused of generating a fraudulent police accident report for the purpose of gaining monetary benefits through his no-fault insurance coverage. The Frauds Bureau and the NYPD conducted the investigation.
- DON’T STOP AT CHOP SHOP
Arrested on 9/6/01
Charged with various violations of the New York State Penal Law
An investigation conducted by the Frauds Bureau and the NYPD led to the arrest of three men accused of participating in a network of chop shops operating in Brooklyn, where stolen cars or "give-ups" were dismantled and the parts sold.
