Arrests for March 2004
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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SENTENCED
- Beatrice Kaufman was sentenced on 3/25/04 to 52 weekends in jail for cheating an insurance company, the Federal Emergency Management Agency (FEMA) and two charities by falsely claiming that her home and business were damaged in the September 11 attack on the World Trade Center. In addition, her plea bargain, entered into in January 2004, required her to admit that she received the money through false pretenses, to make restitution to Chubb Insurance Company from which she received more than $58,700, and to the charities. She received $8,000 each from FEMA and the American Red Cross and $10,000 from Safe Horizon. She was also fined $169,620. An investigation by the Frauds Bureau, FEMA, the Manhattan DA's Office and Chubb led to her arrest in November 2002.
- Kathleen J. Caunter of Lake George, NY, pled guilty to insurance fraud in the 3rd degree on 3/3/04 and was sentenced to five years felony probation and restitution. Caunter intentionally set her car on fire and filed claims totaling more than $20,000 with Progressive and North Country Insurance Companies. Her arrest followed an investigation by the Frauds Bureau, the State Police and the Warren County DA's Office.
- THE WHEELS ARE OFF THE CAR
Arrested on 3/31/04
Charged with insurance fraud in the 4th degree and attempted grand larceny in the 4th degree
An unemployed Rochester man was charged with submitting fraudulent invoices in support of a theft claim in the amount of $2,728 to Liberty Mutual Insurance Company for four tires and rims that he said were stolen from his car on 11/3/03. His arrest was the result of an investigation by the Frauds Bureau and Liberty Mutual.
- POLICE OFFICER
Arrested on 3/22/04
Charged with insurance fraud in the 3rd degree
An investigation by the Frauds Bureau and the Pelham Manor Police Department resulted in the arrest of a now-suspended New York City Police Officer for submitting allegedly fraudulent receipts in support of a $10,000 claim for electronic equipment that he reported stolen from his home.
- BAKED GOODS
Arrested on 3/16/04
Charged with insurance fraud in the 5th degree and violation of the Worker's Compensation Law
One of the defendants in this case was accused of working at a bakery during February and March 2001 while at the same time he collected workers' compensation benefits. The owner/operator of the bakery was arrested on 3/19 and charged with violation of the Workers' Compensation Law. Both parties reported to the Workers' Compensation Board that the first defendant was not employed at the bakery during the time in question. An investigation by the Frauds Bureau, the Workers' Compensation Board Fraud Inspector General's Office and the Onondaga County DA's Office led to their arrests.
- BUSINESS AT HOME
Arrested on 3/9/04
Charged with insurance fraud in the 3rd degree, grand larceny in the 4th degree and violation of the Workers' Compensation Law
An upstate telemarketer was charged with fraudulently collecting nearly $7,365 in disability benefits from Selective Insurance Company of America. An investigation by the Frauds Bureau, the Workers' Compensation Fraud Inspector General's Office, the City of Tonawanda Police Department and Selective uncovered evidence that the suspect was operating a business out of his home while collecting the benefits to which he was not entitled.
- 100-COUNT INDICTMENT
Arrested on 3/5/04
Charged with scheme to defraud, money laundering, grand larceny, insurance fraud and falsifying business records
An investigation by the Frauds Bureau and the Attorney General's Office led to a 100-count indictment charging 11 people and 7 corporations with engaging in a far-reaching no-fault scheme to defraud insurance carriers of an estimated $1 million. Those arrested included five health care providers, two attorneys and a network of recruiters. New York's no-fault law allows reimbursement to medical facilities for services provided to those injured in auto accidents. The defendants in this case manipulated New York's no-fault system by soliciting auto accident victims to use a particular medical facility and submit fraudulent claims for treatment that had not been provided and for medical procedures that were unwarranted.
- CAUGHT
Arrested on 3/5/04
Charged with grand theft
A former star on the Buffalo Destroyers arena football team allegedly submitted fraudulent documents to collect nearly $15,000 that he was not entitled to receive. He began collecting New York workers’ compensation benefits following a career-ending injury in 1999. However, an investigation by the Frauds Bureau, the State Insurance Fund Division of Confidential Investigations and the Workers’ Compensation Board Fraud Inspector General’s Office revealed that after moving to California in January 2002, the suspect began to work for the City of South Lake Tahoe. The New York Insurance Department was informed of his activities and contacted the authorities in California to have him arrested.
- NO COVERAGE
Arrested on 3/5/04
Charged with insurance fraud, offering a false instrument for filing and violation of the Workers' Compensation Law
The defendant in this case, the owner of a now-defunct pizza shop in Spring Valley, NY, was arrested for allegedly submitting false workers' compensation documents stating that he was a sole proprietor and had no employees. However, an investigation by the Frauds Bureau, the Clarkstown Police Department and the Workers' Compensation Fraud Inspector General's Office uncovered evidence that he actually employed two workers and the fraudulent documents were an attempt to avoid paying into the workers' compensation system.
- NYC CORRECTIONS OFFICER ARRESTED
Arrested on 3/4/04
Charged with insurance fraud in the 3rd degree, grand larceny in the 3rd degree and falsifying business records in the 1st degree
An investigation by the Frauds Bureau, the NYPD's Fraudulent Accident Investigation Squad, the Attorney General's Office and the New York City Department of Corrections Inspector General's Office led to the arrest of a Corrections Officer on charges that she participated in a staged accident and then submitted a fraudulent no-fault insurance application in an effort to obtain benefits.
- KEEPING IT IN THE FAMILY
Arrested on 3/3/04
Charged with insurance fraud and attempted grand larceny
This suspect was driving her car in September 2003 when it was struck by another car. The driver of the second car insisted that the defendant was alone in her car at the time of the accident. However, Progressive Insurance Company, which insured the second car, received no-fault claims from two other women who claimed they were passengers in the defendant's car. Furthermore, witnesses stated that these two women, relatives of the suspect, arrived on the scene after the accident and entered the vehicle before the Buffalo Police arrived. They were taken to a local hospital and Progressive was subsequently billed for nearly $6,000 for "injuries" allegedly sustained in the accident. All three were arrested following an investigation by the Frauds Bureau, Progressive Insurance Company and Travelers (which insured the defendant's car).
- FRAUD ON THE WEST COAST
Arrested on 3/2/04
Charged with false statement supporting a claim, grand theft and forgery under the California Penal Code
The defendant in this case sustained an on-the-job injury in October 1987 while working for a law firm in Nassau County. She began receiving workers' compensation benefits and subsequently relocated to California. However, an investigation by the Frauds Bureau, with the assistance of the California Insurance Department, revealed that she submitted allegedly altered receipts for prescription medications to the New York State Insurance Fund. The investigation further disclosed that the defendant received her prescriptions from a free clinic in San Diego and she was not charged for the medications.
- AUTO ARSON
Arrested on 3/1/04
Charged with insurance fraud in the 3rd degree, attempted grand larceny in the 3rd degree and falsely reporting an incident
A suspect from Pound Ridge, NY, reported to the police that his car was stolen from a Queens street corner on 11/11/03 at about 4:50 p.m. At about 10:30 that evening, the car was set on fire by an unknown suspect. FDNY and NYPD personnel who responded to the scene identified the car as the one reported stolen earlier by the suspect. The fire was classified as incendiary. This arrest was the result of an investigation by the Frauds Bureau and the FDNY's Bureau of Fire Investigation.
PRIOR SUPPLEMENTS
FEBRUARY 2004
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SENTENCED
Michael Cammarota, a former life insurance agent and sublicense of a financial services agency, was sentenced on 2/10/04 to three years in jail for his role in a scheme in operation since 1997, in which he convinced his clients, many of them senior citizens, to invest in annuities and other investment products. However, Cammarota used the money to support his extravagant lifestyle. The scheme worked for awhile because Cammarota made occasional interest payments to his early clients from the money entrusted to him by his new investors. His arrest in May 2003 was the result of an investigation by the Frauds Bureau, the Suffolk County DA's Economic Crimes Bureau and the Nassau County DA's Consumer Frauds Bureau.
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INDICTED
Indicted on 2/5/04
Charged with 32-counts including mail fraud, wire fraud, obstruction of justice and witness tampering
A federal grand jury indicted two New York businessmen for defrauding at least 12 clients of more that $20 million in insurance premiums. The indictment charged that between 1998 and February 2003, these defendants offered insurance through several insurance brokerage firms they owned, collected premiums, but never actually obtained the coverage. In other instances they obtained coverage but later cancelled the policies, replacing them with less expensive and less valuable coverage. They also collected premiums to pay for one client's insurance and then used those funds to pay for insurance issued to another client. The cash was allegedly spent on vacation homes, gambling sprees and yachts. The investigation was conducted by the Frauds Bureau and the Manhattan DA's Office.
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ARSON
Arrested on 2/25/04
Charged with insurance fraud in the 5th degree, reckless endangerment in the 1st degree and arson in the 3rd degree
A New York State Corrections Officer reported that his 1976 Camper Truck caught fire, causing damage to the vehicle and the camper. The defendant stated that the fire occurred while no one was in or near the vehicle and that the cause of the fire was unknown. He filed a $2,500 damage claim with Progressive Insurance Company. However, during an investigation by the Frauds Bureau and the Cayuga County Sheriff's Office, the defendant gave a statement admitting he had intentionally set the fire by pouring gasoline into the motor compartment and igniting it.
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STAGED ACCIDENT
Arrested on 2/19/04
Charged with insurance fraud in the 3rd degree, grand larceny in the 3rd degree and falsifying business records in the 1st degree
Four suspects were arrested and charged with participation in a staged accident. The four then submitted allegedly fraudulent no-fault insurance applications in an effort to collect benefits to which they were not entitled. This investigation was conducted jointly by the Frauds Bureau, the NYPD's Fraudulent Accident Investigation Squad, the Attorney General's Office and the New York City Department of Corrections Inspector General.
DECEMBER 2003
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WHAT MISFORTUNE
Arrested on 12/11/03
Charged with insurance fraud in the 2nd degree
An investigation by the Frauds Bureau led to the arrest of a Dobbs Ferry, NY, man for filing fraudulent insurance claims on four different occasions. In October 1985, the defendant submitted a claim with Travelers Insurance Company stating that while on vacation, a sun filter slipped off the lens of a telescope causing the loss of sight in his right eye. In June 1992, he submitted a claim with BCS Insurance Company maintaining that he sustained a solar burn in his right eye causing the loss of sight. He received an initial payment of $25,000 from BCS and an additional payment of $57,000 in settlement of a civil suit. In March 1997, he filed claims with J.C. Penney Life and U.S. Life Insurance Companies, stating that while on a cruise ship, a bottle of champagne exploded striking him in the right eye and causing loss of sight. The defendant received $500,000 from each carrier. Then, in April 2002 he again filed a claim, this time with National Union Fire Insurance Company, stating that while on a cruise ship he was struck in the right eye by a frisbee causing blindness. A $500,000 claim was not paid in this case.
