Arrests for October 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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- CAR FIRE
Arrested on 10/23/03
Charged with insurance fraud in the 3rd degree, attempted grand larceny in the 3rd degree and falsifying business records in the 1st degree
A joint investigation by the Frauds Bureau, the Monroe County DA’s Office, the State Police and GEICO Insurance Company’s SIU resulted in the arrest of an unemployed Rochester woman. The defendant reported to the Rochester Police and GEICO on 8/24/03 that while she was on vacation, her 2000 Infinity was stolen from her driveway. However, the investigation uncovered evidence that her car was found on fire on a street in Brooklyn on 8/25/03 and removed by the New York City Sanitation Department on 9/2/03. The defendant subsequently filed a fraudulent claim for $16,200.
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DOUBLE DIPPING
Arrested on 10/21/03
Charged with grand larceny in the 4th degree
A Buffalo man was involved in an auto accident on 3/5/03 and filed a claim with the other party’s insurer, Nationwide Insurance Company, from which he received a settlement of $2,794. However, he then filed a second claim with his own insurer, New York Central Mutual Fire, from which he received $2,986. This defendant is on probation for a similar scam for which he was arrested earlier this year. The Frauds Bureau and the State Police pooled resources in this investigation.
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CARPET CAPER
Arrested on 10/20/03
Charged with insurance fraud in the 5th degree and falsifying business records in the 1st degree
After his furnace backed up, the suspect in this case filed a homeowners insurance claim stating he had replaced the carpeting that was damaged as a result of the furnace. An investigation by the Frauds Bureau and the Otsego County Sheriff’s Office revealed that he never replaced the carpeting and the claim was fraudulent.
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SNOWPLOW OR NO PLOW?
Arrested on 10/20/03
Charged with insurance fraud in the 3rd degree and falsifying business records in the 1st degree
The defendant in this case filed a claim with State Farm Insurance Company for a snowplow that he said was stolen. In support of his claim, he included a fraudulent receipt in the amount of $3,471 for the purchase of the plow. However, he did not own a plow before he filed the claim but he did purchase one with the claim settlement from State Farm. An investigation by the Frauds Bureau and the Town of Camillus Police Department led to his arrest.
- WHERE’S HOME?
Arrested on 10/18/03
Charged with petit larceny and falsifying business records in the 2nd degree
An investigation by the Frauds Bureau resulted in the arrest of a travel agent accused of filing a fraudulent homeowners insurance application. The application listed an upstate home as the suspect’s primary residence. In January 2003, the home sustained severe damage as a result of an intense cold spell. He filed a claim with New York Central Mutual Fire Insurance Company and received more than $8,000 to repair the damage. However, the investigation uncovered evidence that the suspect’s primary residence is actually in Manhattan and he is an infrequent visitor to the upstate home. Had the insurer been aware of this, the policy would not have been issued.
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DECADENT DECADE
Arrested on 10/9/03
Charged with grand larceny in the 2nd degree and possession of a forged instrument in the 2nd degree
Over a ten-year period following the death of his mother, a New York City man forged her signature and cashed $108,000 in workers’ compensation checks that were issued to her. The Frauds Bureau and the Manhattan DA’s Office conducted this investigation jointly.
- FLORIDA’S NOT FAR ENOUGH
Arrested on 10/9/03
Charged with insurance fraud and mail fraud
A woman now living in Florida was arrested for her part in a large scale insurance fraud ring that staged or fabricated auto accidents between February 1999 and July 2000 in New York City. A 15-month multi-agency investigation into automobile accident insurance fraud and bribery led to charges against 67 individuals in August 2001. The fraudulent claims in this case were estimated to exceed $1 million. The investigation was conducted by the Frauds Bureau, the U.S. Attorney for the Eastern District, the FBI, the NYPD and the New York City Department of Investigations. (See Arrest Summaries for August 2001 in Archives.)
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PRESCRIPTIONS FILLED TWICE
Arrested on 10/8/03
Charged with criminal possession of a forged instrument in the 2nd degree and insurance fraud in the 4th degree
During January-March 2003, the defendant in this case obtained legitimate prescriptions for a controlled-substance narcotic. He made photocopies of the prescriptions, presented the originals to a pharmacy that billed his carrier, MVP Health Care, directly. The defendant then presented the photocopies to a second pharmacy, paid in cash, and took possession of the prescription drugs a second time, illegally. He subsequently submitted a Direct Member Reimbursement Form and the receipts for this cash purchase and was paid $2,281 as a result of his fraudulent action. The combined efforts of the Frauds Bureau and the State Police led to his arrest.
PRIOR SUPPLEMENTS
September 2003
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GUILTY!
Twila McKee, the younger half of a mother-daughter team from Milwaukee, pled guilty on 9/25/03 for her part in a scheme to defraud both Conseco Direct Life and Peoples Benefit Life Insurance Companies. She will be sentenced on 12/8/03. Her mother is scheduled for a motion hearing on 11/6/03. The two women claimed the mother had died in the attack on the World Trade Center in September 11. The mother was the insured and the daughter was the beneficiary on the two policies, with benefits totaling $135,000. An investigation by the Frauds Bureau and the Manhattan DA’s Office revealed that the mother is still alive and, in fact, her fingerprints were on the claim filed with Conseco for the death benefits. In addition, the mother submitted an auto claim to a third insurer 12 days after her purported death. The matter was turned over to the Milwaukee County DA’s Office for prosecution because both defendants live in Milwaukee and filed the claims there.
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A COUPLE OF FRAUDSTERS
Arrested on 9/30/03
Charged with forgery, grand larceny, petit larceny and falsifying business records
A Staten Island couple stands accused of issuing fraudulent auto ID cards and pocketing thousands of dollars in premiums for bogus insurance policies. From April 2002 until their arrest, the husband, an unlicensed broker, and his wife, who worked in their office, allegedly collected premiums but failed to forward them to the appropriate insurer. In addition, they were accused of accepting premiums and issuing fraudulent insurance cards for nonexistent policies. An investigation by the Frauds Bureau, the Staten Island DA’s Office and the NYPD’s Auto Crime Division led to their arrest.
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HIGHER INCOME BRACKET
Arrested on 9/30/03
Charged with insurance fraud in the 3rd degree, grand larceny in the 3rd degree, falsifying business records in the 1st degree and forgery
This suspect was charged with staging an accident and then filing a claim with New York Central Mutual Fire Insurance Company for lost-wage benefits under the no-fault portion of his auto insurance policy. He allegedly produced false federal and state income tax returns indicating that his income was greater than the amount he actually earned. As a result, his insurer paid him benefits to which he was not entitled. The Frauds Bureau conducted this investigation based on a report of suspected insurance fraud by New York Central Mutual.
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JAILER FACES JAIL
Arrested on 9/30/03
Charged with offering a false instrument for filing, criminal possession of a forged instrument, grand larceny and criminal possession of stolen property
A Deputy Sheriff Jailer from Rochester was accused of submitting forged documents to Massachusetts Mutual Insurance Company and, representing himself as his uncle, obtaining a $26,000 loan on his uncle’s life insurance policy. He also submitted change-of-ownership forms to the insurer, giving himself full ownership of the policy. The investigation also revealed that the defendant was in possession of his uncle’s car, which was reported stolen in August 2003, and in September he used forged documents to gain title to the vehicle. At the time of his arrest, he was suspended without pay from his job in the Sheriff’s Office and ordered to surrender his pistol permit and all weapons. The investigation was conducted jointly by the Frauds Bureau, the State Police, the Monroe County Sheriff’s Office and the Brighton Police Department.
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WHO SET THE FIRE?
Arrested on 9/30/03
Charged with arson in the 3rd degree, insurance fraud in the 3rd and 4th degrees and grand larceny in the 4th degree
An investigation by the Frauds Bureau and Progressive Insurance Company’s SIU resulted in the arrest of a Lake George woman accused of intentionally setting her 2001 Ford Explorer on fire. She subsequently submitted a claim to Progressive in the amount of $18,800 for loss of property and a second claim to North Country Insurance Company totaling $1,187 for personal items purported to be in the car at the time of the fire.
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SEPARATE BUT EQUAL
Arrested on 9/25/03
Charged with enterprise corruption
This defendant was charged with participating in an insurance fraud ring that staged accidents, bribed hospital employees to disclose confidential patient information, referred patients to medical clinics to file fraudulent no-fault claims and made referrals to lawyers to bring phony lawsuits. An investigation by the Frauds Bureau, the Manhattan DA’s Office and the National Insurance Crime Bureau led to the arrest of 11 suspects in July 2003 for their part in the scheme. This defendant was charged in a separate indictment.
- YOU CAN’T HIDE
Arrested on 9/12/03
Charged with insurance fraud
A man now living in Virginia was arrested for his part in a large scale insurance fraud ring that staged or fabricated auto accidents between February 1999 and July 2000 in New York City. A 15-month multi-agency investigation into automobile accident insurance fraud and bribery led to charges against 67 individuals in August 2001. The fraudulent claims in this case were estimated to exceed $1 million. The investigation was conducted jointly by the Frauds Bureau, the U.S. Attorney for the Eastern District, the FBI, the NYPD and the New York City Department of Investigations. (See Arrest Summaries for August 2001 in Archives.)
