Arrests for November 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!
*********************************************
-
SENTENCED
Margaret Mahon, an attorney with more than 25 years’ experience in the insurance industry, was sentenced on 11/14/03 to four months of home confinement, three years’ probation, and restitution of $69,257 plus a special assessment of $200. At various times during a ten-year period that began in 1992, she collected long-term disability benefits while she was working, while she was also collecting short-term disability benefits and from two insurers simultaneously. An investigation by the Frauds Bureau, the FBI and the U.S. Attorney’s Office led to her arrest on 11/25/02.
-
GUILTY
- A student, Isadin Mohamed, pled guilty in Buffalo City Court on 11/21/03 to arson in the 5th degree. On 11/11/02, Mohamed reported to Progressive Insurance Company that his car ran out of gas on the road and that he attempted to fill the tank using gasoline he had stored in the car. However, he used a cigarette lighter to search for a pour spout under the seat and the car exploded in flames. He was treated for burns at a local hospital. He subsequently filed a claim for $12,798 in damages but collected no settlement. An investigation by the Frauds Bureau, the Buffalo Fire Investigation Unit and Progressive revealed that gasoline had been poured both inside and outside the car. He was arrested on 8/21/03.
- Corey Trippi, an upstate laborer, pled guilty on 11/3/03 to attempted grand larceny. Trippi surrendered to the Depew Police Department in March 2003 on an arrest warrant obtained by the Frauds Bureau. An investigation revealed that on 8/3/02, he filed for lost-wage benefits under his no-fault coverage. He reported to Progressive Insurance Company that he was unable to work as a result of injuries sustained in an auto accident. However, a private investigator hired by the insurer videotaped him working for a concrete company. He initially denied the charge even when shown the videotape. He was accused of attempting to defraud Progressive of $4,480 in lost wages.
-
LIEN ON ME
Arrested on 11/24/03
Charged with forgery in the 2nd degree
The defendant in this case was accused of falsely representing himself as the lien holder of a damaged car by forging the lien holder’s name on a claim check in the amount of $2,038 and depositing the money into his checking account. An investigation by the Frauds Bureau and the Village of Cobleskill Police Department led to his arrest.
-
NO SERVICES RENDERED
Arrested on 11/21/03
Charged with health care fraud
An investigation by the Frauds Bureau resulted in the arrest of a New York City woman charged with submitting numerous fraudulent claims to Aetna Insurance Company for medical services she never received. As a result of her acts, she collected $28,000 to which she was not entitled between April 1999 and February 2001.
-
VAIN ATTEMPT
Arrested on 11/18/03
Charged with insurance fraud in the 3rd degree
This suspect allegedly filed a fraudulent damaged property claim with Chubb Insurance Company. In support of the claim, she included a receipt she is suspected of forging in an attempt to collect $9,875. The Frauds Bureau conducted the investigation that brought about her arrest.
-
SUFFOLK SWEEP
Arrested 11/17-19/03
Charged with workers’ compensation fraud and medical fraud
A sweep conducted by the Frauds Bureau, the State Insurance Fund and the Suffolk County DA’s Office over a three-day period resulted in the arrest of 12 Long Islanders for various violations of the workers’ compensation law including claimant and premium fraud. An additional person was arrested and charged with health care fraud.
- A GOOD DAY’S WORK
Arrested on 11/13/03
Charged with grand larceny, attempted grand larceny, insurance fraud, attempted insurance fraud, bribery, bribe receiving, falsifying business records, offering a false instrument for filing, forgery, attempted offering a false instrument for filing, attempted falsifying business records and official misconduct
A two-year joint investigation by the Frauds Bureau, the Bronx DA’s Office and the NYPD led to the arrest of 16 people, including four current and one former New York City Police Officers, charged with the theft of a quarter of a million dollars from seven insurance companies. More than $185,000 of the total paid out was for claims submitted by medical facilities where "victims" of alleged auto collisions were examined and treated. Evidence indicted that two partners in a Bronx barbershop supplied the names of the "victims" that appeared on fraudulent accident reports generated by the four police officers. One of the officers also prepped the "victims" in what to say when they went to various clinics for medical treatment, and what to claim when seeking compensation from the insurers. Three of the police officers were paid $250 to $1,000 for each of the fraudulent accident reports. Eight of the civilian "victims" received payments for personal injury insurance settlements ranging from $1,000 to $12,000. The insurers involved are Allstate, State Farm, Metropolitan P&C, OneBeacon, Prudential P&C, Travelers P/C and Kemper Auto and Home Group Insurance Companies.
-
DOUBLE DUTY
Arrested on 11/10/03
Charged insurance fraud in the 3rd degree, grand larceny in the 3rd degree and violation of the Workers’ Compensation Law
As a result of a work-related injury on 1/28/98, this defendant filed for workers’ compensation benefits and was granted permanent partial disability status on 11/9/00 with benefits totaling $104.20 a week. On numerous occasions between February 2002 and August 2003, she submitted documents to the State Insurance Fund stating that she was not working and was not able to work. However, an investigation by the Frauds Bureau, the Fund and the Workers’ Compensation Inspector General’s Office uncovered evidence that she was working two jobs during the time in question and as a result received more that $14,600 in benefits to which she was not entitled.
-
AGENT FRAUD
Arrested on 11/10/03
Charged with forgery in the 2nd degree
An investigation conducted by the Frauds Bureau based on a report of suspected fraud by the State Insurance Fund led to the arrest of a licensed insurance agent suspected of providing fraudulent Certificates of Insurance to a temporary service agency that provides workers to legitimate businesses. The temporary agency in turn submitted these Certificates to their customers, leading these businesses to believe that workers’ compensation coverage was in effect when in fact no coverage existed. The investigation also revealed that after an unsuccessful attempt to obtain legitimate coverage in New York State, the licensee sought coverage for the temporary service agency from the Pennsylvania Department of Labor and Industry by providing false information on his application. When this attempt also failed, he allegedly generated the fraudulent Certificates of Insurance.
-
CHECK THAT STATEMENT
Arrested on 11/10/03
Charged with grand larceny, petit larceny, insurance fraud and falsifying business records
The charges in this case alleged that a Guilderland dentist charged his patients for services never rendered, sometimes using their credit or debit cards without their knowledge or consent. He was also charged with upcoding, i.e., billing for simple procedures under more expensive codes. The investigation, conducted jointly by the Frauds Bureau and the State Police, is ongoing.
-
TOO LATE
Arrested on 11/6/03
Charged insurance fraud in the 3rd degree and falsely reporting an incident
A Bronx woman’s car was set on fire in her driveway on 10/14/03 by an unknown person. The owner, fully aware that her car insurance had lapsed, contacted GEICO Insurance Company on 10/15, reinstated her coverage and later reported that the fire occurred on 10/19. The Frauds Bureau and members of the Bureau of Fire Investigations Auto Squad Arson Initiative pooled resources in this investigation.
-
NURSE FEELGOOD
Arrested on 11/5/03
Charged with criminal possession of a forged instrument in the 2nd degree and insurance fraud in the 5th degree
A nurse from Marietta, NY, while employed in a doctor’s office, stole prescription forms and wrote prescriptions using the names of legitimate patients and their pertinent insurance information. She then had them filled at a local pharmacy, illegally taking possession of the drug Ultram, and had the pharmacy bill the insurers directly without the knowledge or consent of the patients. Her arrest came about as a result of an investigation by the Frauds Bureau and the Town of Geddes Police Department.
-
OUCH!
Arrested on 11/5/03
Charged with insurance fraud in the 3rd degree
This suspect was accused of filing a document with Progressive Insurance Company in support of his no-fault claim stating that his car was struck by another vehicle in a parking lot. He called the EMS and complained of neck, back, shoulder and knee injuries. Evidence uncovered during the investigation by the Frauds Bureau and the Albany County Sheriff’s Department indicated that the accident had never taken place and there were no legitimate injuries.
-
BOUNCED!
Arrested on 11/4/03
Charged with insurance fraud in the 3rd degree, offering a false instrument for filing in the 1st degree and fraudulent practices under the Workers’ Compensation Law
A Syracuse laborer was injured in an auto accident on 11/11/00. Claiming to be unable to work, he filed for workers’ compensation benefits and on at least four occasions gave sworn testimony at Workers’ Compensation hearings that he had not worked since the date of his injury. However, an investigation by the Frauds Bureau, the State Insurance Fund and the Workers’ Compensation Inspector General’s Office revealed that during the time in question, he had been employed as a bouncer at a local bar and also had taken work as a landscaper. As a result, he fraudulently collected more than $15,000 in benefits.
PRIOR SUPPLEMENTS
OCTOBER 2003
-
ARSON
Arrested on 10/30/03
Charged with arson in the 3rd degree, insurance fraud in the 3rd degree, reckless endangerment in the 2nd degree and falsely reporting an incident in 3rd degree
This defendant, along with another person not apprehended, was accused of entering into a contract to dispose of his car by setting it on fire. He then reported the car stolen to the NYPD and GEICO Insurance Company. The Frauds Bureau and staff from the Bureau of Fire Investigations Auto Squad Arson Initiative joined forces in the investigation that led to his arrest.
-
LATE PAYMENTS
Arrested on 10/13/03
Charged with insurance fraud in the 2nd degree and falsifying business records in the 1st degree
When she fell behind on the lease payments for her 2000 Mercedes Benz, an upstate woman reported the car stolen. However, an investigation by the Frauds Bureau and the Syracuse Police Department uncovered evidence that she knew her estranged husband was in possession of the car in Brooklyn but fearing the car would be repossessed, she filed a theft claim with Progressive Insurance Company for $70,000.
-
NO-FAULT FRAUD
Arrested on 10/7/03
Charged with insurance fraud in the 3rd degree, grand larceny in the 3rd degree, falsifying business records in the 1st degree, offering a false instrument for filing in the 1st degree, official misconduct and falsely reporting an incident in the 3rd degree
A New York City Police Officer was charged with preparing and submitting a fraudulent Police Accident Report. The Report was used to file a fraudulent no-fault claim on which GEICO Insurance Company paid out more than $10,000. His arrest was the result of an investigation by the Frauds Bureau and the NYPD.
