Arrests for May 2005
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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- ARSON
Arrested on 5/31/05
Charged with insurance fraud in the 3rd degree, arson in the 3rd degree, grand larceny in the 4th degree and falsely reporting an incident in the 3rd degree
On May 11, 2005, a Brooklyn woman reported that her 1999 Nissan Altima was stolen from the street near her home and filed a claim with Allstate Insurance Company for the loss. At 11:50 p.m. that same night, the New York City Fire Department responded to a vehicle fire in another section of Brooklyn which was subsequently identified as the "stolen" Nissan Altima. The Fire Marshals were called in for further investigation and determined that the fire was incendiary. Further investigation by the Frauds Bureau and the FDNY revealed that the woman owned the car, paid the insurance but never drove the car. The driver was actually the owner’s granddaughter who arranged for a friend to set fire to the car without the knowledge of her grandmother. During an interview, the granddaughter admitted that she had arranged for the disposal of the car for the insurance settlement which would be far more than she would have received if she had sold or traded the car.
- "GIVE-UPS"
Arrested on 5/25/05
Charged with mail fraud and conspiracy
A two-year investigation conducted jointly by the Frauds Bureau, the U.S. Attorney’s Office, the State Police, the Buffalo and Cheektowaga Police Departments and the SIUs of eight insurance companies that were victims of the fraud led to the arrest of ten suspects accused of giving up their autos to a Lackawanna man to be totaled by fire or other damage in order to obtain the insurance settlements. The "give-ups" took place between April 2000 and June 2003 and the eight insurers paid out more than $105,000 for the losses. Nine of the cars have been recovered.
- WHAT A DIFFERENCE A DAY MAKES
Arrested on 5/25/05
Charged with insurance fraud in the 4th degree
While driving his wife’s car on May 20, 2004, a Livingston County man was involved in an accident. However, the car was not insured. So on May 21, his wife obtained the insurance coverage and then filed a claim with Progressive Insurance Company for the damage, stating that the accident had occurred on May 21, after the coverage was in place.
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UNDERCOVER "BUY"
Arrested on 5/24/05
Charged with criminal possession of forgery devices, criminal possession of a forged instrument, forgery, scheme to defraud, insurance fraud, attempted offering a false instrument for filing, criminal possession of stolen property and selling insurance with a revoked license
During an investigation by the Frauds Bureau and the NYPD’s Auto Crime Division, an undercover investigator paid $400 for auto insurance coverage and was issued an auto ID card. The investigation subsequently revealed that the ID card was fraudulent and no insurance coverage existed. The defendant, who was operating an insurance business with a license that had been revoked in 1998, had been arrested on three previous occasions for similar activities.
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FALSE DOCUMENTATION
Arrested on 5/19/05
Charged with insurance fraud in the 5th degree, making an apparently sworn false statement in the 2nd degree and violation of the Workers’ Compensation Law
Following a work-related injury at Syracuse University in 1994, an upstate landscaper began collecting disability benefits. On numerous occasions in the intervening years he provided the University and the New York State Workers’ Compensation Board with documentation stating that he was not able to work. However, an investigation by the Frauds Bureau and the State police uncovered evidence that he was indeed employed and collecting benefits to which he was not entitled.
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SUPER BOWL WINNERS AND ONE LOSER
Arrested on 5/18/05
Charged with insurance fraud in the 3rd degree
The owner/operator of a restaurant in Chafee, NY, reported that during a burglary at his business, $6,000 was stolen. The money was purportedly kept on hand to pay day-to-day operating expenses. During an investigation by the Frauds Bureau and the State Police, investigators discovered that the burglary report was bogus and the allegedly stolen cash was used to pay the winners of a Super Bowl pool.
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CONFESSION
Arrested on 5/12/05
Charged with arson in the 3rd degree, insurance fraud in the 3rd degree, reckless endangerment in the 1st and 2nd degrees, attempted grand larceny in the 3rd degree, falsely reporting an incident in the 3rd degree and petit larceny
A Brooklyn man reported to the NYPD that his 2005 Chrysler mini-van was stolen from the street in front of his home in the overnight hours of 5/4/05. He claimed that he had parked it at 11:00 p.m. on 5/3 and discovered it gone at 10:45 a.m. on 5/4. He then filed a claim with Progressive Insurance Company for the loss. However, at 12:52 a.m. on 5/4, the New York City Fire Department responded to a report of a car on fire at another location in Brooklyn. The Fire Marshals were called in and after an examination and investigation they determined that the fire was incendiary. The vehicle was later identified as the min-van reported stolen by the defendant. During an interview on 5/13, the defendant admitted to setting the car on fire because he could not afford the car payments or the insurance. The Frauds Bureau and the FDNY conducted the investigation that led to his arrest.
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NO-FAULT FRAUD
Arrested on 5/12/05
Charged with insurance fraud in the 3rd degree
Following an auto accident, the suspect in this case filed an application for more than $3,000 in no-fault benefits for nonexistent injuries. This ongoing investigation is being conducted by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad. A number of arrests have been made in this case and more are expected.
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ARRANGED FIRE
Arrested on 5/9/05
Charged with insurance fraud in the 4th degree and attempted grand larceny in the 4th degree
A joint investigation by the Frauds Bureau, the State Police, the Rochester Police Department and State Farm Insurance Company resulted in the arrest of an upstate personal care assistant accused of falsely reporting that her 2000 Hyundai Accent was stolen. The car was later discovered burned and evidence uncovered by investigators indicated that she had arranged to have it destroyed in order to get the insurance settlement.
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AUTO WARRANTIES (NOT)
Arrested on 5/10/05
Charged with grand larceny in the 4th degree, falsifying business records in the 1st degree, criminal impersonation in the 2nd degree, scheme to defraud in the 1st degree and insurance fraud in the 4th degree
The defendant in this case was charged with selling a number of fraudulent auto warranties to unsuspecting vehicle owners while working as a service representative at a high-end car dealership. The Frauds Bureau and the NYPD pooled resources in the investigation that led to his arrest.
- BACK AT WORK
Arrested on 5/4/05
Charged with grand larceny in the 3rd degree
An investigation by the Frauds Bureau led to the arrest of an upstate woman who sustained a work-related injury and began collecting disability benefits in January 2003. However, she did not inform New York Life Insurance Company that she had returned to work and therefore, from September 2003 to November 2003, she collected $17,560 in benefits to which she was not entitled.
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FULLY EMPLOYED
Arrested on 5/4/05
Charged with grand larceny in the 3rd degree
A Long Island woman was arrested for collecting almost $4,400 in workers’ compensation benefits from the State Insurance Fund while she was employed. Her arrest was the result of an investigation by the Frauds Bureau and the State Fund.
PRIOR SUPPLEMENTS
APRIL 2005
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GUILTY
Benzena Dosumnu, a physician assistant at Kings County Hospital Center, was convicted on 4/28/05 of mail fraud and theft of pension plan. She was arrested in July 2004 on charges of obtaining a $250,000 life insurance policy in the name of a seriously ill patient without the patient’s consent. She applied for the policy from Guardian Life Insurance Company in September 2000, posing as the insured’s aunt, having someone representing herself as the insured take the medical exam, and naming herself as beneficiary. Dosumnu paid about $43 a month in premiums. In December 2002, an investigator with Guardian discovered significant inaccuracies in the policy application and reported the findings to the Frauds Bureau. Dosumnu has agreed to make restitution; however, sentencing is still pending.
- FRAUDULENT CLAIM
Arrested on 4/24/05
Charged with falsifying business records in the 1st degree and violation of the Workers’ Compensation Law
This suspect was accused of providing materially false information on his claim for workers’ compensation. In addition, he did not inform his insurer, Federated Mutual Insurance Company, that he had returned to work and continued to collect benefits to which he was not entitled. His arrest was the result of the efforts of the Frauds Bureau and the insurance company.
- STOLEN? NO, SOLD
Arrested on 4/21/05
Charged with insurance fraud in the 3rd degree, grand larceny in the 3rd degree and falsely reporting an incident in the 3rd degree
A construction worker from Newfane, NY, reported to the Niagara County Sheriff’s Department that construction tools and equipment valued at more than $5,000 had been stolen from his garage. However, investigators from the Frauds Bureau and the Sheriff’s Department discovered that the defendant had already filed a claim and been reimbursed for the loss. Moreover, the investigators found, the tools and equipment had not been stolen. Rather, he had sold them.
- BROKER NO MORE
Arrested on 4/7/05
Charged with falsifying business records and grand larceny
Following an investigation by the Frauds Bureau and the NYPD, a licensed broker was arrested and charged with collecting $1,300 in auto premiums but failing to remit the money to an insurance company.
MARCH 2005
SENTENCED
Eight of 16 people arrested in January 2005 pled guilty and have been sentenced for their participation in a motorcycle theft and fencing ring that stole more than 81 imported motorcycles valued at more than $1 million from owners in Brooklyn, Queens, Nassau, Suffolk, Connecticut and New Jersey. Eric Kohler, a former New York City Firefighter, admitted that he was a member of the ring, that he possessed at least three stolen motorcycle engines and sold them over the Internet. He was sentenced on March 30 to 1 ½-to-4 ½ years in prison for enterprise corruption. Two other "fences" who were the driving force behind the ring were also given prison terms. Christo Demetroules pled guilty to enterprise corruption and was sentenced on March 14 to a term of 3-to-9 years. The second ring leader, Michael Kontos pled guilty to enterprise corruption and on May 5 also received a sentence of 3-to-9 years in jail. Five additional defendants identified as "steal men" were also sentenced. Jose Hernandez pled guilty to enterprise corruption and burglary and was sentenced on March 28 to 4 ½-to-9 years in prison. Adam Alvarez and Philip Serrano pled guilty to attempted enterprise corruption and received conditional discharges. Gerard Beauchamp pled guilty to criminal possession of stolen property and on February 28 was sentenced to a term of 2-to-4 years. Eric Nieves pled guilty to criminal possession of stolen property and received a sentence of time served and five years’ probation.
The ring, including fences, locators and "steal men," was closed down following a nine-month undercover sting operation. The investigation began in March 2004 when a motorcycle owner reported to the NYPD that he recognized parts of his motorcycle, which had been stolen from the driveway next to his home, being offered for sale on e-Bay. The NYPD’s Auto Crime Division launched a wider investigation in conjunction with the Queens DA’s Organized Crime and Rackets Bureau and the Frauds Bureau. The defendants were accused with burglarizing homes and stealing motorcycles in New York, New Jersey and Connecticut. The steal men drove or hauled the motorcycles by van to garages in Queens where they were chopped up, identification numbers on the parts were altered, the parts were photographed for Internet sale, and then packaged for shipment to purchasers from Ohio and California, as well as Italy, Spain and Australia. Investigators executed eight court-authorized search warrants on October 20-21, 2004 at the garages and at the homes of Demetroules, Kontos, Kohler and another defendant and recovered $169,000 in cash, several computers that allegedly contained records of the ring’s Internet sales, and numerous stolen motorcycle engines and other parts, two stolen cars and tools used to dismantle vehicles and alter their identification numbers. In addition, NYPD detectives coordinated with investigators in Ohio and California for the execution of 15 "sneak and peak" search warrants which allowed law enforcement officers to covertly open packages containing stolen engines shipped by the alleged fences, photograph the contents and their identification numbers, reseal the packages and forward them to their intended destinations, enabling the investigation to continue.
