Arrests for February 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!
- A retired insurance agent was arrested on 2/16/02 for bilking two former clients out of nearly $20,000. In one case, he defrauded an elderly woman of nearly $15,000 when he persuaded her to turn the money from her retirement annuity over to him to make investments for her. In the second case, he deceived the victim into believing that she owed $4,600 on her insurance policies. In both cases, he put the money to his personal use. Following his arrest, he pled guilty and will be sentenced on 6/17/02. The court is seeking restitution.
- An NYPD Administrative Aide pled guilty to enterprise corruption for her involvement in the operation of a multi-million dollar auto insurance fraud ring in the New York metropolitan area. The Aide will serve two to six years for generating numerous phony accident reports as part of a systematic scheme to defraud insurers. The Frauds Bureau joined the Queens District Attorney’s Office, the NYPD and the State Police in an investigation – dubbed "Operation Whiplash" – that led to charges against 112 individuals and four corporations in December 2001. The investigation uncovered an organized network engaged in filing false accident reports and fictitious claims of physical injury.
- ONCE IS NOT ENOUGH
Arrested on 2/26/02 and 2/15/02
Charged with insurance fraud in the 3rd degree and attempted grand larceny in the 3rd degree
- A West Seneca woman was arrested twice within two weeks. Charges in the first arrest, on 2/15/02, alleged that she defrauded her insurance company of $12,700. After her car had been destroyed by fire on 3/4/00, she filed a claim stating she had purchased the car in November 1999 from a private owner for "$15,000 or $16,000." She further stated that at the time of purchase, the car had been driven 24,000 miles. An investigation conducted by the Frauds Bureau and the State Police revealed that she bought the car from a dealer for $5,400 and the actual mileage was 122,315. Had the insurer been aware of these facts, the defendant would have been reimbursed $5,977, rather than the $18,600 she was paid for her claim.
- The defendant was arrested a second time on 2/26/02 when further investigation uncovered evidence that she filed a claim stating that on 3/2/01,while in the process of moving, a gas grill valued at $1,350 and tools with an estimated worth of $2,740 were located in a vehicle owned by her friend when the friend’s car was stolen. In support of her claim, the defendant submitted a fraudulent sales receipt for the grill. Investigators determined she never purchased a grill. In addition, the investigation uncovered evidence that the receipt she submitted for the tools was the same receipt submitted by another friend in a 1991 theft claim. The friend’s name had been deleted and the defendant’s name written in. The date on the receipt was 1985, which would have made the defendant 14 years old when she bought the tools. The friend, who claimed her car containing the grill and the tools was stolen, was arrested on 2/25/02 in connection with the allegedly fraudulent stolen car claim.
- SHE BLEW IT
Arrested on 2/25/02
Charged with insurance fraud in the 3rd degree and grand larceny in the 3rd degree
The defendant in this case filed a claim with her insurer stating that her car was stolen in Buffalo on 3/1/01. She claimed that she had purchased the car for $16,500 from a private owner, though she didn’t know his name, and further stated that it was in excellent condition at the time of the theft. Her insurer reimbursed her in the amount of $16, 100. However, an investigation by the Frauds Bureau and the State Police revealed that the car was purchased from a dealer for $8,000 and that it had a blown engine. The vehicle was subsequently recovered with – guess what? – a blown engine.
- AGENT FRAUD
Arrested on 2/21/02
Charged with falsifying business records in the 1st degree, scheme to defraud in the 1st degree and grand larceny in the 4th degree
A former independent insurance agent from Beacon, NY, was accused of collecting $1,075 in insurance premiums but failing to forward them to the appropriate insurer. The customer’s insurance policy was subsequently cancelled for nonpayment of premium and his driver’s license suspended. The former licensee then issued the customer a fraudulent temporary insurance identification card, giving the false impression that the customer had auto insurance coverage. Frauds Bureau investigators identified six additional victims of similar fraudulent activity by this defendant.
- HOSPITAL TIME
Arrested on 2/14/02
Charged with insurance fraud in the 3rd degree and grand larceny in the 3rd degree
An investigation by the Frauds Bureau and the Bronx District Attorney’s Office led to the arrest of an unemployed Bronx woman for her alleged involvement in a medical insurance scam. The suspect in this case was covered under a policy that paid a fixed dollar amount for each day she was confined to a hospital. She is accused of submitting claims to her insurer in which she increased the actual number of days spent in the hospital or she listed dates during which there was no hospital stay at all. Between January 1999 and May 2000, the defendant received $21,800 in benefits which she collected under false pretenses.
- [NO] HELP WANTED
Arrested on 2/13/02
Charged with insurance fraud in the 3rd degree
Under New York no-fault law, a person injured in an auto accident is entitled to reimbursement for lost wages, medical costs and other reasonable expenses such as transportation to and from doctor appointments and household help when necessary. The defendant in this case maintained that as a result of injuries suffered in a December 2000 auto accident, she required the services of a person to provide household and child care assistance. She submitted documentation to her insurer stating that she had paid the helper $3,100. However, she allegedly did not hire a helper nor did she pay out $3,100 as she claimed. Her arrest came as a result of an investigation conducted by the Frauds Bureau and the State Police.
- OH, WHAT A TANGLED WEB
Arrested on 2/11/02
Charged with insurance fraud in the 1st degree, grand larceny in the 1st and 2nd degrees and offering a false instrument for filing
Two Long Island brothers were accused of the theft of millions of dollars in a project that called for the building of five dormitories at SUNY Westbury. The indictment alleged that they lied about their work experience and finances on an application for the $27 million contracting job. On the basis of their lies, they were awarded the contract and while involved in the project, they were paid $5.3 million by the State Dormitory Authority. The project was due for completion by January 2002. However, according to records, because of the shoddy work performed and materials used by these defendants the job was not completed. The indictment also charged that the brothers lied to an insurance company in 1994 and 1995 when applying for bonds for a contracting company owned by them at that time. That company subsequently defaulted on the bonds and the insurer was out $1.4 million. This information was omitted from their application for the Dormitory Authority job.
- NO-FAULT FRAUD
Arrested on 2/11/02
Charged with conspiracy in the 4th degree, falsifying business records in the 2nd degree and attempted insurance fraud in the 5th degree
The suspect in this case was accused of generating a false police accident report in order to collect no-fault insurance benefits to which he was not entitled. The Frauds Bureau and the NYPD worked together on this investigation.
- AND AGAIN
Arrested on 2/7/02
Charged with insurance fraud in the 3rd, 4th and 5th degrees, falsifying business records in the 1st degree and falsely reporting an incident in the 3rd degree
An investigation by the Frauds Bureau and the NYPD led to the arrest of a Queens man accused, together with five other suspects not apprehended, of generating a false police accident report for the purpose of submitting a fraudulent claim for benefits under his no-fault insurance coverage.
- AND ONCE AGAIN
Arrested on 2/6/02
Charged with insurance fraud, falsifying business records, criminal impersonation and reckless endangerment
A Brooklyn man was charged with staging accidents, using the name of a man without that man’s knowledge, in order to collect no-fault insurance benefits to which he was not entitled. The arrest was the result of an investigation conducted jointly by the Frauds Bureau and the NYPD.
- HE’S GOT WHEELS
Arrested on 2/1/02
Charged with insurance fraud in the 3rd degree and attempted grand larceny in the 3rd degree
An upstate field technician submitted an allegedly fraudulent receipt to his insurer in the amount of $3,300 for custom wheels and tires which he claimed were mounted on his car when it was stolen. He stated that the wheels and tires were missing when his car was recovered 12 hours later. However, an investigation by the Frauds Bureau and the Brighton Police Department uncovered evidence that indicated no custom wheels and tires were ever on the car.
PRIOR SUPPLEMENT
December 2001
- A TRIO OF COMPLAINTS
Arrested on 12/26/01
Charged with grand larceny in the 2nd degree and scheme to defraud
Following a complaint from an insurer, a licensed insurance broker from Brooklyn was accused of misappropriating $53,000 in premiums meant to secure auto insurance policies. An investigation by the Frauds Bureau and the NYPD revealed that complaints had also been lodged against this broker by two other insurers. One alleged that he misappropriated $6,500 on an inland marine policy and the second that he misappropriated $13,000 in auto premiums. One of the insurers involved obtained a judgment against this defendant and following execution of a search warrant, he was arrested.
- TIPS APPRECIATED
Arrested on 12/4/01
Charged with falsifying business records in the 1st degree and insurance fraud in the 5th degree
A tip from an insurance agent led to the investigation of a contractor who allegedly altered the declarations page of his insurance policy on several occasions in order to deceive businesses into believing that he had adequate coverage to obtain subcontracting jobs. The investigation by the Frauds Bureau and the State Police revealed that no coverage existed.
