Arrests for June 2003
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
- On June 10, 2003, Christopher Dean, a Buffalo laborer, pled guilty in Erie County Court to attempted fraudulent practices under Section 114 of the Workers’ Compensation Law and attempted grand larceny in the 4 th degree. Dean began collecting workers ’ compensation benefits from CNA Insurance Company following a job-related back injury. However, an investigation by the Frauds Bureau and the Buffalo Police Department revealed that in August 2001, while still collecting benefits from CNA, he took a full-time job. Then in May 2002, he filed a claim with Great American Insurance Company, again claiming a back injury. On numerous occasions thereafter, he denied any history of workers’ compensation claims or previous back injuries. He was arrested in October 2002. A sentencing date has not yet been set.
- Ted F. Cook, a former insurance agent from Buffalo, pled guilty in Erie County Court on June 4, 2003 to grand larceny and scheme to defraud. Cook was arrested in March 2003 when an investigation revealed that between July 25 and December 7, 2000, Cook took a total of $31,729 from four clients, all of whom were in their 70’s. Acting as their financial advisor, he was supposed to reinvest the money but instead he deposited it into his personal account. The investigation was conducted by the Frauds Bureau, the New York State Police and the Erie County DA’s Office.
- 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. The Insurance Department has actively coordinated with other law enforcement agencies to make certain that a strong line of communication exists among all agencies involved in this issue. Because there is a crossover between insurance fraud and charity fraud in some instances, that link has proven invaluable in that it fosters the exchange of information that can be critical to an investigation. The Bureau has tracked more than 65 suspected fraudulent WTC-related claims thus far and a number of arrests have been made.
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FALSE REPORT
Arrested on 6/24/03
Charged with grand larceny, insurance fraud and filing a false instrument
The defendant in this case, together with two others not apprehended at this time, submitted an altered police accident report to a medical clinic, for an accident in which they were not involved, in an attempt to collect no-fault benefits.
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SWEEPING UP
Arrested on 6/17-19/03
Charged with grand larceny, insurance fraud and various violations of the Workers’ Compensation Law
Detectives from the Suffolk County DA’s Office, working with Frauds Bureau investigators, the State Insurance Fund and the Workers’ Compensation Inspector General, arrested 18 people for defrauding the State’s workers’ compensation system. Among those arrested were two teachers, the owner/operator of a limousine service, and a chiropractor who was responsible for the theft of almost half the $550,000 stolen in the various schemes. Over a 21-month period from November 1998 through August 2000, the chiropractor collected $273,000 in disability benefits, claiming that headaches, hypertension and back pain prevented him from working in his profession. However, the investigation revealed that during that time, he was the sole owner of a corporation that collected more than $500,000 annually from therapists and other professionals who leased space at his treatment center. Another suspect, a middle school math teacher, cashed her husband’s benefit checks for nearly three years after his death, illegally collecting more than $58,800. The sweep targeted thieves stealing from those who were legitimately unable to work and needed workers’ compensation benefits to get by.
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TARGETING NO-FAULT FRAUD
Arrested on 6/17-19/03
Charged with conspiracy in the 4th degree
An investigation by the Frauds Bureau, the Attorney General/Special Prosecutor’s Office, the New York City Health and Hospitals Corporation Inspector General’s Office, the New York City Department of Investigations and the City of New York Hospital Police led to the arrest of 19 members of two insurance fraud rings operating in Queens and Nassau Counties. Those arrested include three personal injury attorneys, two former NYPD police officers, two insurance brokers, several middlemen or "steerers," and operators of medical clinics. According to the charges, the middlemen paid insurance brokers for confidential information about recent auto accident victims. Then, claiming to be affiliated with the Health and Hospitals Corporation or Elmhurst Hospital, they called the victims and steered them to corrupt medical clinics, encouraging them to fake or exaggerate their injuries. The clinics then allegedly billed insurers for treatment that was either unnecessary or never provided. The allegations also charged that victims were then steered to personal injury lawyers who filed fraudulent lawsuits. Using court-ordered wiretaps, investigators began eavesdropping on the steerers’ telephone conversations with lawyers, clinic workers and staff at the insurance brokerage offices. This investigation is ongoing and more arrests are expected.
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TORCHED!
Arrested on 6/18/03
Charged with arson in 3rd degree and insurance fraud in the 2nd degree
An apartment building owner from Liverpool, NY, was accused of submitting a fraudulent claim for more than $250,000 to Erie Insurance Company following a fire at the building on 6/3/02. The fire originated in an unoccupied area of the building where the defendant had reportedly been working with a map torch. Independent investigations revealed that the fire was incendiary in nature. The efforts of the Frauds Bureau, the Syracuse Police Department and the Onondaga County DA’s Office led to his arrest.
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CONSPIRATORS
Arrested on 6/12/03
Charged with insurance fraud in the 3rd degree and grand larceny in the 3rd degree
The defendant in this case was arrested for her involvement in submitting a fraudulent claim to Allstate Insurance Company for the property reportedly damaged when her basement was flooded. As a result, she received $4,000 for items that either were not in the basement at the time or were undamaged. On 5/28/03, her brother and co-conspirator was arrested on these same charges. At the time of his arrest, he was also charged with submitting a fraudulent claim to Madison Mutual Insurance Company for windstorm damage to a property he owned in Syracuse for which Madison Mutual issued an emergency repair check for $3,601.64. However, an investigation uncovered evidence that all the damage to the property existed prior to the storm. A contractor who provided false receipts indicating that repair work was done was arrested on 6/4/03 for his participation in the scheme. These arrests were the result of the efforts of the Frauds Bureau, the Onondaga County Sheriff’s Department and the Onondaga County DA’s Office.
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UH, OH, BARTENDER
Arrested on 6/12/03
Charged with insurance fraud in the 4th degree, offering a false instrument for filing in the 1st degree and committing a fraudulent practice under Section 114 of the Workers’ Compensation Law
An upstate woman was accused of presenting sworn statements to the State Insurance Fund that allegedly contained materially false information. In support of her workers’ compensation claim, she contended she was unable to work when in fact she was employed as a bartender at a local establishment. As a result of these statements, she collected more than $3,000 to which she was not entitled. The investigation conducted by the Frauds Bureau was the result of a report of suspected fraud submitted to the Bureau by the State Insurance Fund.
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THIS WAS NO ACCIDENT
Arrested on 6/11/03
Charged with falsifying business records in the 1st and 2nd degrees, insurance fraud in the 3rd and 5th degrees and grand larceny in the 3rd degree
An investigation by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad brought about the arrest of a Brooklyn woman accused of generating a false police accident report involving an accident that never occurred. In addition, she allegedly submitted the fraudulent report to a medical facility in an effort to collect benefits under the no-fault portion of her auto insurance coverage.
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CLEANING UP
Arrested on 6/10/03
Charged with insurance fraud in the 5th degree and petit larceny
Following a job-related injury, the defendant in this case reported to Chubb Insurance Company that he was not able to work. An investigation by the Frauds Bureau and Chubb uncovered evidence that the defendant was employed by a local Post Office as a contract cleaner while collecting lost-wage benefits.
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PAINTING A FALSE PICTURE
Arrested on 6/10/03
Charged with insurance fraud in the 3rd degree and grand larceny in the 3rd degree
A Rochester resident was involved in an on-the-job accident on 10/30/00 and reported to Legion Insurance Company that he was unable to work. However, during an investigation by the Frauds Bureau and the Workers’ Compensation Inspector General’s Office, it was revealed that he earned money as a self-employed painting contractor while collecting nearly $9,300 in benefits to which he was not entitled.
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BROKER REVOKED
Arrested on 6/10/03
Charged with falsifying business records in the 1st degree
An investigation by the Frauds Bureau, the State Insurance Fund and the Nassau County DA’s Office resulted in the arrest of an insurance broker for selling fraudulent insurance with the intent of stealing $600 from a client. The suspect, whose license has been revoked, allegedly created and sold a fraudulent Certificate of Insurance to a subcontractor who was unaware that he did not have the required liability coverage.
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FORGERY TWICE
Arrested on 6/10/03
Charged with forgery in the 2nd degree and criminal possession of a forged instrument in the 2nd degree
On two separate occasions, this suspect allegedly forged the signature of her deceased father on benefit checks totaling $1,600. The efforts of the Frauds Bureau and the State Insurance Fund led to her arrest.
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OFFICE WORK
Arrested on 6/7/03
Charged with insurance fraud in the 5th degree
The defendant in this case was charged with falsely stating to Chubb Insurance Company that she was unable to work following an injury sustained on the job. However, an investigation by the Frauds Bureau revealed that she was gainfully employed cleaning offices while collecting workers’ compensation benefits.
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NO HELP
Arrested on 6/6/03
Charged with criminal possession of a forged instrument in the 2nd degree, falsifying business records in the 1st degree and insurance fraud in the 4th degree
As part of a no-fault claim settlement, a Central Square, NY, woman was entitled to household help while she recuperated from an auto accident. She was accused of submitting fraudulent receipts to State Farm Insurance Company indicating that she made use of the household help from May to December 2002 and as a result received $2,750 from the insurer. However, an investigation by the Frauds Bureau and the New York State Police uncovered evidence that she actually used the household service for only four days in August for which she paid out just $200.
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FALSE REPORT 2
Arrested on 6/6/03
Charged with falsifying business records in the 1st and 2nd degrees, insurance fraud in the 3rd and 5th degrees, conspiracy in the 5th degree and grand larceny in the 3rd degree
An investigation by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad led to the arrest of a Queens man who was accused of allowing his name to appear on a fraudulent police accident report in an effort to collect no-fault medical benefits from GEICO Insurance Company.
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ANOTHER FALSE REPORT
Arrested on 6/5/03
Charged with falsifying business records in the 1st and 2nd degrees, insurance fraud in the 3rd and 5th degrees, conspiracy in the 5th degree and grand larceny in the 3rd degree
The defendant in this case was charged with allowing his name to appear on a fraudulent police accident report for the purpose of collecting no-fault medical benefits from Allstate Insurance Company. His arrest was a result of the joint efforts of the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad.
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CONSPIRATORS (cont.)
Arrested on 6/4/03
Charged with insurance fraud in the 3rd degree and grand larceny in the 3rd degree
This suspect was accused of providing a co-conspirator with false receipts indicating that repairs to a property in Syracuse owned by the co-conspirator had been completed. Using the receipts which he knew to be false, the co-conspirator, who was arrested on 5/28/03, filed a fraudulent claim with Madison Mutual Insurance Company and received an emergency repair check for $3,601.64. The Frauds Bureau, the Onondaga Sheriff’s Department and the Onondaga County DA’s Office combined efforts in this investigation.
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FALSE REPORT AGAIN
Arrested on 6/3/03
Charged with falsifying business records in the 1st and 2nd degrees, insurance fraud in the 3rd and 5th degrees, conspiracy in the 5th degree and grand larceny in the 3rd degree
An investigation by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad led to the arrest of this defendant who was accused of generating a fraudulent police accident report and submitting the report to a medical facility in order to collect no-fault benefits.
PRIOR SUPPLEMENTS
May 2003
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DON'T ROLL OVER
Arrested on 5/30/03
Charged with scheme to defraud and grand larceny
A life insurance agent and sublicensee of a financial services agency allegedly convinced his clients, many of them senior citizens, to "roll over" their annuities for what he described as a better deal. In each case he pocketed part of the money, stealing $200,000 from one client alone. The Frauds Bureau, the Suffolk County DA’s Economic Crimes Bureau and the Nassau County DA’s Consumer Frauds Bureau conducted the investigation that brought about his arrest.
- FALSE REPORT YET AGAIN
Arrested on 5/29/03
Charged with insurance fraud, falsifying business records and attempted grand larceny
An investigation by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad resulted in the arrest of a Brooklyn resident accused of submitting a fraudulent no-fault insurance claim and a false police accident report in an attempt to defraud State Farm Insurance Company.
