Arrests for October 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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- JAIL TIME
A member of the Gambino crime family was sentenced on 10/26/01 to nine years in prison and ordered to forfeit $10 million on federal racketeering and tax evasion charges stemming from an NYPD sting operation. A joint investigation by the Frauds Bureau, the NYPD Auto Crime Division and the Queens District Attorney’s Office led to the January 2000 arrest and indictment of this defendant, three of his associates and the company they owned on charges of enterprise corruption under New York State’s Organized Crime Control Act. The indictment charged that these cohorts used extortion, arson and threats to control the lucrative scrap metal industry in Willets Point, Queens. The defendant was also ordered to pay $950,000 in restitution to his victims and $150,000 in back taxes. In addition, he was barred for life from the scrap metal business.
- GUILTY!
- A self-employed floor specialist pled guilty to criminal possession of a forged instrument in the 3rd degree on 10/29/01 and was sentenced to one year conditional discharge and ordered to pay court costs of $120. He voluntarily returned to New York from South Carolina to answer the charges against him. The subject submitted fraudulent certificates of workers’ compensation and general liability insurance for 1997 through 1999 when in fact no coverage existed. An audit of the furniture business for which he subcontracted uncovered the falsified certificates. The subject has subsequently repaid the furniture business $6,200 to cover the back premium. The Frauds Bureau and the Town of Brighton Police Department conducted the investigation that led to his arrest in August.
- Charged with filing a materially false statement with the State Insurance Fund concerning her employment status, a Binghamton woman pled guilty on 10/17/01 and was sentenced to one year conditional discharge and forfeited her workers’ compensation claim. She was collecting benefits at the same time she was employed as a waitress. The Frauds Bureau and the Broome County District Attorney’s Office joined forces in this investigation.
- A Buffalo resident pled guilty to insurance fraud in the 4th degree on 10/15/01. On 4/18/01, this woman purchased a 2000 Ford Van. She signed an agreement to put down $15,000 and finance the rest. She managed to talk her way into taking possession of the Van with a promise to send the $15,000 check "in a day or two." She obtained insurance coverage and on 5/2/01 reported the Van stolen. The insurer issued a check in the amount of $27,246 to the Ford dealership. She subsequently admitted that she had placed the Van in storage and falsely reported it stolen. In addition, she twice tried to trade it in while it was in storage. Sentencing is scheduled for 12/12/01. The Frauds Bureau conducted the investigation.
- FALSE TESTIMONY
Arrested on 10/31/01
Charged with perjury in the 1st degree and fraudulent practices
An investigation by the Frauds Bureau and the Binghamton City Police Department led to the arrest of this defendant who was accused of providing false testimony at a workers’ compensation hearing and submitting false written statements to the State Insurance Fund. In the written documents and his testimony, he stated that he was not working. However, the investigation revealed that he was an active partner in a transportation business. He was sentenced to one year conditional discharge and forfeited his workers’ compensation claim.
- NO-FAULT FRAUD
Arrested on 10/30/01
Charged with conspiracy in the 4th degree, falsifying business records in the 1st and 2nd degrees, insurance fraud in the 4th and 5th degrees, and false reporting of an incident in the 3rd degree
The defendant in this case was accused, along with five others not arrested at this time, of generating a false police accident report in order to fraudulently collect benefits through his no-fault insurance coverage. The Frauds Bureau and the NYPD conducted the investigation that led to his arrest.
- PHANTOM TREATMENTS
Arrested on 10/29/01
Charged with insurance fraud in the 2nd degree, grand larceny in the 2nd degree and falsifying business records in the 1st degree
A self-employed psychologist was charged with billing an insurer in the amount of $191,985 for services never rendered to 29 patients. She fraudulently collected $65,259 in benefits. Her arrest came as a result of the investigation by the Frauds Bureau and the Westchester County District Attorney’s Office.
- NO COVERAGE
Arrested on 10/23/01
Charged with criminal possession of a forged instrument in the 2nd degree
An investigation by the Frauds Bureau and the Town of Brighton Police Department led to the arrest of a self-employed contractor charged with altering two Certificates of Insurance to show that he had workers’ compensation and general liability insurance when in fact no coverage existed.
- A DEGREE OF SEPARATION
Indicted on 10/23/01
Charged with insurance fraud in the 4th degree and criminal possession of a forged instrument in the 2nd degree
The defendant in this case submitted a claim for property allegedly stolen from his estranged wife’s residence. He submitted fraudulent documents as proof that he lived at his wife’s residence. However, the investigation revealed that in accordance with a separation agreement he no longer live at the residence and therefore was no longer covered under his wife’s homeowner’s insurance policy. He forged the signature on a $2,500 check the insurer issued to the policyholder – his wife.
- FALSE REPORT
Arrested on 10/19/01
Charged with insurance fraud, falsifying business records, attempted grand larceny, false reporting of an incident and conspiracy
The defendant in this case, with four other persons who were also apprehended, generated a false accident report in order to fraudulently collect benefits through his no-fault insurance coverage. The arrests were the result of the joint efforts of the Frauds Bureau and the Brooklyn District Attorney’s Office.
- ERRANT BROKER
Arrested on 10/19/01
Charged with grand larceny in the 3rd degree and criminal possession of a forged instrument
A licensed broker was arrested and accused of possession of two fraudulent insurance identification cards. He was also charged with collecting premium payments and failing to remit them to the appropriate insurer. The Frauds Bureau and the Westchester County District Attorney’s Office combined efforts in this case.
- "STOLEN" CAR RECOVERED
Arrested on 10/17/01
Charged with insurance fraud in the 3rd degree and offering a false instrument for filing
A former Corrections Officer on disability retirement and her son were arrested for allegedly reporting their car stolen when in fact the car had been set on fire. The NYPD had recovered the car before these defendants reported it stolen. The mother also submitted a claim for the "stolen" vehicle to her insurer. The Frauds Bureau and the NYPD Auto Crime Division conducted the investigation jointly.
- SCAMING THE WORKERS’ COMP
SYSTEM
Arrested on 10/11/01
Charged with filing a false instrument
An investigation by the Frauds Bureau and the Suffolk County District Attorney’s Office resulted in the arrest of a woman for allegedly presenting to the State Insurance Fund a Notice and Proof of Claim for Disability Benefits containing false information in order to collect benefits to which she was not entitled.
- SLIP-AND-FALL FRAUD
Arrested on 10/10/01
Charged with insurance fraud in the 2nd degree and falsifying business records in the 1st degree
A Nassau County man was arrested and charged with falsely reporting he had slipped on a liquid substance and fallen in a supermarket in November 2000, sustaining serious injuries. Four months later, he filed a civil lawsuit against the supermarket, alleging negligence and seeking $2 million in damages. However, video surveillance by the supermarket showed the defendant deliberately spilling fabric softener on the floor before he falsely reported that he had fallen. An investigative firm hired by the supermarket captured the defendant on videotape just 11 days after the alleged fall helping to carry a refrigerator out of a house, with no apparent sign of injury. The Frauds Bureau assisted the Nassau County District Attorney’s Office in his apprehension.
- CHOP SHOP SPECIAL
Arrested on 10/9/01
Charged with insurance fraud in the 3rd degree and grand larceny in the 3rd degree
An investigation by the Frauds Bureau and the NYPD Auto Crime Division brought about the arrest of a self-employed taxi driver charged with fraudulently reporting to the NYPD and his insurance company that his car had been stolen. The defendant allegedly gave up his car to a chop shop before the date of the reported theft. He subsequently filed a claim with his insurer and fraudulently collected $24,250.
- WORKERS’ COMP FRAUD
Arrested on 10/5/01
Charged with committing a fraudulent practice
An upstate man was arrested and charged with filing a false statement with his insurer concerning his employment status. He was collecting workers’ compensation benefits while working with his wife at a computer business. The Frauds Bureau and the Oxford Police Department conducted the investigation.
- MORE WORKERS’ COMP FRAUD
Arrested on 10/4/01
Charged with forgery in the 2nd degree
A trucking company employee was accused of altering the dates of coverage on a Certificate of Insurance in an attempt to prove that the trucking company had workers’ compensation insurance when in fact it did not. The Certificate reflected that coverage extended from December 1997 through December 2001. However, an investigation by the Frauds Bureau and the New York State Police revealed that the policy had been cancelled in 1999.
- FIVE-COUNTY FRAUD OPERATION
SWEEPS CLEAN
Arrested on 10/2/01
Charged with various incidents of workers’ compensation, auto, no-fault, homeowners, welfare and unemployment insurance fraud
A major sweep covering five upstate counties led to the filing of criminal charges against 81 residents of the Capital Region on 10/2/01. The Frauds Bureau worked closely with the District Attorneys of Rensselaer, Albany, Saratoga, Schenectady and Washington Counties, as well as other state agencies and state and local law enforcement agencies on the five-month investigation.
- In Rensselaer County, 18 were charged, including three people allegedly involved in a scam at a Club in Troy. One of the participants, injured on the job in 1993, began bartending at the Club this year and fraudulently collected $4,500 in benefits by having her paychecks made out to her husband. Her husband and the Club secretary have also been charged.
- In Schenectady County, 18 people have been charged, including a mechanic who allegedly worked at an auto body shop while collecting benefits, and a man accused of testifying at a workers’ compensation hearing that he was unable to work when in fact he was caught on videotape at work over a 12-month period.
- Charges were brought against 26 people in Albany County, including a Department of Motor Vehicles employee who allegedly collected $3,000 in unemployment benefits to which he was not entitled, and several others who were accused of fraudulently collecting unemployment insurance while employed at local nonprofit agencies.
- In Saratoga County, charges were filed against seven people, one of whom allegedly worked five construction jobs while collecting $4,600 in unemployment benefits.
This five-county sweep, the first of its kind, prove the effectiveness of such collaborative efforts. The Frauds Bureau plans to duplicate the program in other parts of the State in the future.
- MATERIAL MISREPRESENTATION
Arrested on 10/1/01
Charged with filing a false commercial insurance application
The Frauds Bureau and the Suffolk County District Attorney’s Office worked jointly on the investigation that led to the arrest of a Stonybrook, New York, resident who was charged with submitting an insurance application to the State Insurance Fund that he knew contained false information.
PRIOR SUPPLEMENTS
September 2001
- TRIPLE TROUBLE
Arrested on 9/20/01
Charged with various violations of the New York Insurance Law
Three Brooklyn residents, working together, allegedly altered a police accident report in order to fraudulently collect benefits through their no-fault coverage. The Frauds Bureau and the NYPD conducted the investigation.
