Arrests for August 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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- WORLD TRADE CENTER FRAUD
Since the tragic events of September 11, the Frauds Bureau has been fast-tracking World Trade Center claims to ensure that they receive prompt attention. A number of arrests have been made in WTC-related cases and the Bureau is investigating additional complaints. More arrests are anticipated.
Ajay Chawla was convicted of insurance fraud, attempted aggravated theft by deception, telecommunications fraud and falsification on 8/16/02 in Common Pleas Court in Butler County, Ohio. The case is believed to be Ohio’s only case of insurance fraud related to September 11. Chawla filed a claim against a $100,000 life insurance policy, maintaining that his father had been inside the World Trade Center when it collapsed. However, evidence revealed that Chawla knew his father was alive and well in his native India. He faces up to eight years in prison at sentencing on September 16, 2002. The coordinated efforts of the Frauds Bureaus and local police departments in New York, Ohio and Illinois led to his arrest. In addition to Chawla’s, the New York Insurance Frauds Bureau has tracked at least 55 suspected fraudulent September 11-related claims.
- CROSSING THE HUDSON PART II
Arrested on 8/30/02
Charged with criminal possession of stolen property in the 3rd degree
A Delaware County woman was arrested and charged with possession of a stolen 1995 Mark VIII. The car was reported stolen in New Jersey and prior to its recovery, Liberty Mutual Insurance Company paid the owner more than $13,000. During an investigation by the Frauds Bureau, the Delaware County Sheriff’s Office and the New Jersey Office of the Insurance Frauds Prosecutor, evidence was uncovered that this defendant with others, including the owner of the car, had conspired in a fraud scheme that began in New Jersey and proceeded to New York. One of the other conspirators in this case was arrested on 7/23/02 in this ongoing investigation and more arrests are expected.
- KEY EVIDENCE
Arrested on 8/27/02
Charged with insurance fraud, attempted grand larceny, making a punishable false written statement and falsely reporting an incident
An investigation by the Frauds Bureau and the Staten Island District Attorney’s Office led to the arrest of a local man charged with falsely reporting his car stolen and filing a fraudulent insurance claim. However, the car was recovered during the investigation and upon examination, experts discovered that this type of car required a specific key in order to start the engine. The fact that there was no damage to the steering column or the transmission also bolstered the case.
- WHAT’S UP, DOC
Arrested on 8/27/02
Charged with insurance fraud in the 3rd and 4th degrees, grand larceny in the 3rd degree and scheme to defraud in the 1st degree
A Brooklyn physician was arrested on charges that between 9/97 and 5/00, he submitted no-fault claims for services that were never rendered. Moreover, services, when they were provided, were performed by unlicensed individuals. Two investigators – one each from the Frauds Bureau and the State Attorney General’s Office – working undercover, visited the doctor’s office posing as accident victims. They were asked to sign a register indicating they had received treatment on 44 days, none of which were they present at the doctor’s office. However, the doctor submitted no-fault claims for each of these dates and as a result received more than $5,000 in fraudulent reimbursement.
- DO THE MATH
Arrested on 8/27/02
Charged with insurance fraud in the 3rd degree and grand larceny in the 3rd degree
The defendant in this case was accused of submitting fraudulent receipts in support of her workers’ compensation claim indicating that between 1/97 and 7/00, she spent $6,640 for prescriptions she required as a result of a work-related injury. An investigation by the Frauds Bureau and the New York State Police revealed that she had altered her supporting documents to conceal the fact that she had paid only a $2 co-pay for each of the prescriptions.
- KEY IGNITES INVESTIGATION
Arrested on 8/22/02
Charged with insurance fraud, attempted grand larceny, falsely reporting an incident and making a punishable false written statement
A Staten Island resident was charged with reporting his 2000 GMC stolen in an attempt to fraudulently collect more than $3,000 in insurance proceeds. The defendant claimed that he was in possession of all existing keys to the car but the car was recovered with an original key still in the ignition. An investigation by the Frauds Bureau and the NYPD Auto Squad led to his arrest.
- COUPLE IN CAHOOTS
Arrested on 8/21/02
Charged with insurance fraud in the 3rd degree and attempted grand larceny in the 3rd degree
A Monroe County couple reported to the Webster Police Department on 1/5/01 that their home had been burglarized and several items stolen from their garage. They subsequently submitted a claim to Security Mutual Insurance Company for about $21,000 for the bicycles, golf clubs, tools and other property allegedly stolen. An investigation conducted by the Frauds Bureau and Security Mutual turned up evidence that the receipts they submitted in support of their claim were fraudulent.
- "GIVE-UP" AND "BUY-BACK"
Arrested on 8/20/02
Charged with insurance fraud in the 3rd and 6th degrees, grand larceny in the 3rd degree and offering a false instrument for filing in the 2nd degree
The suspect in this case reported to the police and Allstate Insurance Company on 10/1/01 that his 1996 Mercedes Benz had been stolen. However, evidence indicated that he had "given up" his car for the insurance proceeds. The car was obtained on 9/21/01 in a "buy-back" sting operation conducted by the NYPD Auto Crime Division.
- A LONG WAY FROM HOME
Arrested on 8/16/02
Charged with insurance fraud in the 3rd degree, grand larceny in the 3rd degree, making a punishable false written statement and falsely reporting an incident in the 3rd degree
A Bronx woman was arrested following a complaint to the Frauds Bureau by the Kemper Insurance Company on suspicion of a fraudulent claim. This defendant reported his 2001 Mitsubishi stolen on 3/8/02. During an investigation by the Frauds Bureau and the NYPD Auto Crime Division, the car was found to have been in the possession of the Anchorage, Alaska, Police Department at the time of the alleged theft.
- TORCHED IN BROOKLYN
Arrested on 8/6/02
Charged with insurance fraud, attempted grand larceny, falsely reporting an incident and making a punishable false written statement
An electrician’s assistant from Staten Island was accused of fraudulently reporting his car stolen. In fact, the car had been recovered in Brooklyn prior to his report when the FDNY responded to a report of a vehicle on fire. His arrest was the result of an investigation by the Frauds Bureau and the NYPD Auto Crime Division.
- REVOKED BROKER/BOGUS CARDS
Arrested on 8/6/02
Charged with forgery in the 2nd degree, criminal possession of a forged instrument in the 2nd degree, scheme to defraud in the 1st degree, falsifying business records and insurance fraud
An investigation by the Frauds Bureau, the NYPD Fraudulent Accident Investigation Squad and the State Inspector General’s Office into the suspected sale of fake insurance identification cards led to the arrest of a former insurance broker from the Bronx. Complaints to the Insurance Department about the potential sale of phony ID cards initiated the investigation. A search warrant was executed after an undercover purchase of an ID card that was suspected of being fraudulent. Further evidence in the case revealed that the defendant’s broker’s license had been revoked in 1998.
