Arrests for January 2002
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
An NYPD Administrative Aide pled guilty on 1/22/02 to enterprise corruption and faces two to six years in jail. At a hearing in Queens Supreme Court, the defendant admitted to filing 22 phony accident reports that allowed a major insurance fraud ring to put in for $900,000 in fake medical bills and a potential $3 million in bogus liability. She stated that she fabricated the reports from her police computer terminal. This defendant was one of 112 individuals, including three medical doctors, two medical clinics, two chiropractors, a physical therapist, an acupuncturist and two lawyers, indicted in December 2001 for their involvement in one of the largest no-fault fraud rings every uncovered in New York State. The massive undercover investigation was conducted by the Frauds Bureau, the Queens District Attorney’s Office, the NYPD and the State Police.
- POWER SURGE
Arrested on 1/29/02
Charged with falsifying business records in the 1st degree and insurance fraud in the 4th degree
The defendants in this case, a husband and wife, own a computer that was damaged as a result of a power surge. They submitted a receipt for repair of the computer and were paid $1,134 by their insurer. However, an investigation conducted by the Frauds Bureau and the Saratoga Springs Police Department uncovered evidence that the receipt was forged. An arrest warrant was issued and the couple turned themselves in to the Saratoga Springs Police Department.
- MARATHON MAN
Arrested on 1/29/02
Charged with perjury in the 1st degree and attempted grand larceny in the 3rd degree
An investigation conducted by the Frauds Bureau led to the arrest of a Brooklyn truck driver on charges that he fraudulently collected more than $20,000 in workers’ compensation benefits. The defendant sustained a work-related injury in February 1995 and collected benefits from that time to 1997 when his insurer suspended payments because of suspicions about his disability. He continued to claim he was disabled and requested a settlement of his claim in 1999 which his insurer denied. In March 2001, the defendant testified at a Workers’ Compensation Board hearing that he did no exercise, did not jog and had never run a marathon. However, the investigation revealed that he has been a member of the New York Road Runners Club since 1997 and has actively participated in numerous races, including the 1999 and 2001 New York City Marathon.
- DECEMBER SWEEP SEQUEL
Arrested on 1/29/02
Charged variously with felony offenses that include grand larceny in the 3rd degree, insurance fraud in the 3rd degree, perjury in the 1st degree, scheme to defraud in the 1st degree, falsifying business records in the 1st degree and violation of 114 of the Workers’ Compensation Law
Four suspects were arrested on charges that between 1990 and 2001 they defrauded the State workers’ compensation system of a total of about $78,000. The arrests followed four separate but related investigations and were in addition to the arrests made in a December 2001 sweep in which nine persons and a now-defunct laundry were accused of collecting nearly $250,000 in workers’ compensation benefits to which they were not entitled. Each of these four defendants – a cement truck driver, a salesman, a technician and a fork lift operator – claimed that they were unable to work due to injuries sustained on the job. However, all were allegedly employed in full-time jobs. The Frauds Bureau, the Queens District Attorney’s Office and the Workers’ Compensation Inspector General’s Office participated in the investigation.
- TARGET: NO-FAULT FRAUD
Arrested on 1/23-24/02
Charged variously with grand larceny in the 3rd degree, attempted grand larceny in the 3rd degree, insurance fraud in the 3rd and 4th degrees, falsifying business records in the 1st degree, unauthorized practice of a profession and related crimes
A fraud sweep led to the arrest of 20 defendants accused of staging accidents, filing fake accident reports, and submitting phony medical bills. Two defendants allegedly submitted no-fault claims using a phony accident report. The two were reimbursed more than $2,500 for treatment of "post-concussion syndrome" stemming from the "accident." Another defendant was observed slamming his car into a concrete abutment several times in order to enhance damage. He received nearly $3,000 for his phony claim. Two other defendants, employees of a medical facility, provided physical therapy treatments to an undercover investigator posing as a patient although they were not licensed to do so. They also falsely billed the insurer under no-fault for treatments never provided to the undercover investigator. The investigation was conducted by the Frauds Bureau, the AG Special Prosecutor’s newly established Auto Insurance Fraud Unit and the NYPD Fraud Accident Investigation Squad.
- SMART SENIOR
Arrested on 1/22/02
Charged with grand larceny in the 2nd degree
An investigation by the Frauds Bureau and the State Police Special Investigation Unit uncovered evidence that a former licensed life insurance agent submitted fraudulent documents to Hartford Insurance Company authorizing the transfer of an annuity account to American Life Insurance Company of New York without the knowledge or consent of the owner. The former agent allegedly listed his own address as the address for American Life on documents submitted to Hartford. He received a check in the amount of $73,800 which he deposited to his personal account. The investigation began when the account owner, a 73-year-old woman, learned of the unauthorized transfer and notified Hartford.
- WORKERS’ COMP SCAM
Arrested on 1/22/02
Charged with penalties for fraudulent practices, 114 of the Workers’ Compensation Law
The defendant in this case was injured on the job and filed a workers’ compensation claim. She submitted documentation stating she was unable to return to work because of her injury. An investigation by the Frauds Bureau revealed that the defendant had started a new job about a month before submitting the documentation.
- NO COVERAGE
Arrested on 1/15/02
Charged with insurance fraud and falsely reporting an incident
A Buffalo woman submitted a claim to her insurer stating that her car was damaged while parked in front of her house on 10/31/01. However, evidence turned up during an investigation by the Frauds Bureau indicated that the damage occurred on 10/24/01. Because the defendant had no collision coverage on that date, she added the coverage on 10/26/01 and reported the date of the accident as 10/31/01.
- SOLD FOR PARTS
Arrested on 1/10/02
Charged with insurance fraud in the 3rd and 5th degrees, grand larceny in the 3rd degree, offering a false instrument for filing in the 2nd degree and submitting a false written statement
A Queens film technician was charged with fraudulently reporting to the NYPD and her insurer that her car had been stolen. But the vehicle was located in a used-parts shop and records seized in a search warrant showed that the car was at the shop, dismantled and the parts sold before it was reported stolen. The Frauds Bureau, the NYPD and the DMV joined forces in the investigation.
- TRIPPED UP
Arrested on 1/10/02
Charged with insurance fraud
An upstate man was accused of submitting a handwritten document to his insurer for mileage reimbursement for trips to and from physical therapy sessions in connection with injuries sustained in an auto accident. On two occasions, the defendant allegedly submitted claims for reimbursement for therapy sessions that he did not attend. The Frauds Bureau conducted the investigation that led to his arrest.
- BACKDATE
Arrested on 1/9/02-1/14/02
Charged with falsifying business records in the 1st degree and insurance fraud in the 3rd degree
On the day after the accidental death of her husband, the widow was visited at her home by two licensed insurance agents. The agents persuaded her to purchase a $5,000 life insurance policy with a proposal to backdate it so she could collect the benefits. They covered their tracks by falsifying the records of the insurance company. The Frauds Bureau joined forces with the State Police in the investigation that led to the arrest of one agent on 1/9/02 and the second on 1/14/02.
- LIGHTS OUT
Arrested on 1/9/02
Charged with insurance fraud in the 4th degree and submitting a false written statement
According to the charges in this case, the defendant reported that some outdoor lighting had been stolen during a burglary at his home. He submitted a receipt for the purchase of replacement lighting. An investigation by the Frauds Bureau revealed that the receipt was fraudulent and the lighting had not been replaced.
- PHONY CERTIFICATE
Arrested on 1/8/02
Charged with criminal possession of a forged instrument in the 2nd degree
The Frauds Bureau and the Brighton Police Department conducted an investigation that led to the arrest of a self-employed floor installer from Rochester. This defendant was charged with presenting a fraudulent certificate of general liability, workers’ compensation and disability insurance in order to obtain work as a subcontractor when in fact no coverage existed.
- BROKER FRAUD
Arrested 1/8/02
Charged with insurance fraud in the 5th degree, criminal possession of a forged instrument in the 2nd degree, falsifying business records in the 1st degree, grand larceny in the 4th degree and petit larceny
A New York State-licensed insurance broker was accused of collecting more than $28,000 in premiums but failing to remit them to the appropriate insurer. In addition, he allegedly issued numerous fraudulent auto insurance identification cards. An investigation by the Frauds Bureau led to his arrest.
PRIOR SUPPLEMENTS
December 2001
- TEACHER, TEACHER
Arrested on 12/20/01
Charged in a 21-count indictment with insurance fraud in the 3rd degree, grand larceny in the 3rd and 4th degrees and petit larceny
A former New York City school teacher filed a disability claim stating he was unable to work as a result of an injury he sustained while on the job. During the period from August 1996 through September 1999, the defendant certified to his insurer in writing on numerous occasions that he was totally disabled and that his daily activities consisted of walking, reading and housework only. An investigation by the Frauds Bureau and the Brooklyn District Attorney’s Office uncovered evidence that he was employed at a sports uniform and equipment supply house through the entire period of his claim during which he collected more than $46,000 in undeserved benefits.
November 2001
- COVERAGE CANCELLED
Arrested on 11/2/01
Charged with falsifying business records in the 1st degree and insurance fraud in the 5th degree
A self-employed laborer from Schenectady was the subject of an investigation by the Frauds Bureau and the Glenville Police Department. The defendant was charged with presenting an altered certificate of insurance in order to secure a subcontracting job. The certificate was changed to show that the defendant had insurance coverage from 1/3/01 to 1/3/02 when in reality he had cancelled his policy on 12/2/97 and never reinstated coverage.
October 2001
- GUILTY PLEA
A Rochester woman was arrested on 8/23/01 on charges she supplied information to a friend so that he could represent himself as her husband in order to have dental work performed under her insurance coverage. Her friend, acting as the husband who was covered under his wife’s policy, was also arrested and accused of filing fraudulent claims for four dental visits for which he was reimbursed $324. On 10/25/01, the woman pled guilty to disorderly conduct in full satisfaction of the original charges. She was sentenced to a one-year conditional discharge, 16 hours of community service and a $65 surcharge. Her friend pled guilty to forgery in the 3rd degree and was sentenced to a one-year conditional discharge, restitution of $90 and a surcharge of $125.
