Arrests for August 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!
*********************************************
-
SENTENCED
Antoinette Millard, an out-of-work divorcee who at times claimed to be a Saudi princess, pled guilty to insurance fraud and grand larceny and was sentenced on 8/2/05 to treatment in a psychiatric center for one year. The Manhattan DA’s Office agreed to no prison time after a psychiatrist who is often called to testify as a prosecution expert certified that the woman is bipolar, anorexic and depressed. An investigation by the Frauds Bureau and the Manhattan DA’s Office led to her arrest on 5/7/04 for attempting to defraud her insurance carrier by claiming that $262,000 worth of jewelry had been stolen in a mugging incident. However, the investigation revealed that one of the appraisal forms was forged and that one month prior to obtaining insurance on the jewelry, she actually sold 12 of the 23 items she claimed had been stolen. The grand-larceny charge was the result of her allegedly bilking American Express out of hundreds of thousands of dollars that she charged to her credit card. Millard also reached a settlement with AmEx that bars prosecutors from ordering restitution.
- TWO FOR ONE
Arrested on 8/31/05
Charged with insurance fraud in the 5th degree
The two defendants in this case submitted a fraudulent report for an accident that did not occur and then received no-fault benefits for nonexistent injuries. The Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad pooled resources in the investigation that led to the arrests.
- HIS BROTHER’S [BOOK]KEEPER
Arrested on 8/30/05
Charged with criminal possession of a forged instrument in the 2nd degree
While working as a bookkeeper at his brother’s subcontracting firm, the defendant in this case presented a forged Certificate on General Commercial Liability Insurance to a construction company as proof that his brother’s business was adequately insured. In a routine review of the Certificate by the construction company’s insurance agent, it was discovered that the Certificate was bogus and the subcontractor did not have the necessary coverage. The matter was turned over to the Frauds Bureau for an investigation that led to the arrest of the defendant.
- FALSE PROOF
Arrested on 8/29/05
Charged with falsifying business records in the 2nd degree and insurance fraud in the 5th degree
An investigation by the Frauds Bureau, the State Insurance Fund and the Onondaga County Sheriff’s Office resulted in the arrest of a licensed insurance agent who was accused of preparing a fraudulent Certificate of Insurance and presenting it to a contractor as evidence that a subcontractor had workers’ compensation insurance coverage as required by law. Moreover, the agent had been advised by the State Insurance Fund prior to submitting the fraudulent document that the Fund was responsible for providing such Certificates of Insurance.
-
ARSON
Arrested on 8/18/05
Charged with insurance fraud in the 3rd degree, criminal solicitation in the 4th degree and falsely reporting an incident in the 3rd degree
The suspect in this case reported to the Niagara Falls Police Department on 2/5/05 that her 2002 Chevrolet Avalanche was stolen from her place of business. The car was recovered later that same day by the Town of Niagara Police Department totally destroyed by fire. However, an investigation by the Frauds Bureau, the Niagara Falls Police Department, the Niagara County DA’s Office and GEICO Insurance Company revealed that the defendant was having financial difficulties and furthermore, that she paid an individual $300 to steal her car and burn it in an attempt to collect the insurance settlement.
- AGENT FRAUD
Arrested on 8/16/05
Charged with grand larceny in the 2nd and 3rd degrees, criminal possession of a forged instrument in the 2nd degree, insurance fraud in the 3rd and 4th degrees and petit larceny
A joint investigation conducted by the Frauds Bureau, the Rochester and Irondequoit Police Departments and Nationwide Insurance Company led to the arrest of a former agent for Nationwide. While acting in his capacity as an agent, this suspect allegedly misrepresented himself as two of his clients in order to implement changes of address so that all future correspondence from Nationwide would be sent to his own home address. Between July 2000 and July 2004, he systematically withdrew funds held in the individual retirement accounts and annuities of the two clients. The disbursement checks totaling more than $143,000 were sent in the clients’ names to his home and he and at least one other person (as yet not charged) forged the signatures of the clients and cashed the checks. The investigation is ongoing.
- TEACHER, TEACHER AIDE CAUGHT IN FRAUD
Arrested on 8/16/05
Charged with insurance fraud in the 4th degree
A building trades teacher and a teacher’s aide, both of whom worked for the Genesee Valley BOCES (Board of Cooperative Educational Services), were charged with conspiring to commit insurance fraud. The two filed a claim with Liberty Mutual Insurance Company falsely stating that the motorcycle owned by the aide was damaged when the teacher accidentally ran over it with his truck at an open house they were conducting for students and school administrators on 6/3/05. However, an investigation by the Frauds Bureau and the Genesee County Sheriff’s Department revealed that the aide allowed the teacher to ride his motorcycle, which the teacher crashed causing $1,400 worth of damage. The aide was previously arrested on 8/2/05.
-
MATERIAL MISREPRESENTATION
Arrested on 8/15/05
Charged with insurance fraud in the 2nd degree, offering a false instrument for filing and committing a fraudulent practice as defined in the Workers’ Compensation Law
Following a work-related injury, a laborer from Waverly, NY, began to collect workers’ compensation benefits. However, an investigation initiated by the Frauds Bureau based on a report submitted by the State Insurance Fund uncovered evidence that the suspect who claimed to be a disabled auto service technician was working for a local masonry company. On several occasions during the time he was collecting benefits while employed, he submitted documents to the Fund that he knew contained materially false information as to his employment status.
-
WHAT A GAMBLE
Arrested on 8/12/05
Charged with insurance fraud in the 3rd degree, attempted grand larceny in the 3rd degree, offering a false instrument for filing in the 2nd degree and making a punishable false written statement
An upstate woman reported to the North Tonawanda Police Department on 6/4/05 that during a burglary at her home, jewelry worth $30,000 was stolen. She subsequently filed a claim with MetLife for the loss. However, during an investigation by the Frauds Bureau and the North Tonawanda Police Department, a pawnbroker stated in an interview that the defendant pawned jewelry valued at $30,000 on 6/2/05 and received $2,500 in cash which she used for gambling at a local casino.
-
ARSON 2
Arrested on 8/8/05
Charged with arson in the 3rd degree, attempted grand larceny in the 3rd degree, insurance fraud in the 3rd degree and falsely reporting an incident in the 3rd degree
An investigation conducted by the Frauds Bureau and the New York City Fire Marshals led to the arrest of a Queens man for attempting to defraud GEICO Insurance Company. The defendant reported to the NYPD that his 2004 Toyota truck had been stolen on 7/2/05 at 2:20 p.m. However, on 7/2/05 at 8:13 p.m., the FDNY responded to a vehicle fire in Brooklyn, where it was discovered that the vehicle contained a registration and vehicle ID that were later identified as belonging to the defendant’s truck. The Fire Marshals were subsequently notified by the New York City Department of Sanitation that the truck had been removed from the street by an authorized contractor. The contractor informed the Frauds Bureau that the fire was intentionally set and an investigation was initiated by the Frauds Bureau and the Fire Marshals. During the investigation, the suspect was interviewed and he confessed that he had arranged to have his truck deliberately burned for the insurance settlement.
-
BOGUS POLICY
Arrested on 8/8/05
Charged with insurance fraud and possession of a forged instrument
The defendant in this case was charged with purchasing an auto insurance policy in the name of another person without the knowledge or consent of that person. He subsequently staged an accident, produced the bogus policy as proof of insurance coverage and then he and others who participated in the staged accident received medical treatment for nonexistent injuries under the no-fault portion of the policy. This investigation is ongoing.
- ARSON 3
Arrested on 8/8/05
Charged with insurance fraud and possession of a forged instrument
The defendant in this case was charged with purchasing an auto insurance policy in the name of another person without the knowledge or consent of that person. He subsequently staged an accident, produced the bogus policy as proof of insurance coverage and then he and others who participated in the staged accident received medical treatment for nonexistent injuries under the no-fault portion of the policy. This investigation is ongoing.
- ARSON 3
Arrested on 8/2/05
Charged with insurance fraud in the 3rd degree, attempted grand larceny in the 3rd degree, making a punishable false written statement in the 3rd degree and filing a false written statement
At 11:07 p.m. on 6/11/05, the NYPD responded to a vehicle fire in the Bronx. Because of the suspicious nature of the fire, the New York City Fire Marshals were notified and an Origin and Cause examination on 6/13/05 determined that three fires were deliberately set inside the vehicle. After conferring with the Fire Marshals, the Frauds Bureau made database inquiries that disclosed that the vehicle in question belonged to the defendant who had arranged for his car to be destroyed and subsequently filed a fraudulent loss claim with GEICO Insurance Company stating that the car had been stolen. Based on the evidence, the defendant was arrested and charged in this case.
-
TASK FORCE SCORES
Arrested on 8/2/05
Charged with conspiracy to commit mail fraud and health care fraud
An investigation by the Frauds Bureau and other members of the Federal Health Care Task Force, which includes federal, state and local law enforcement agencies, led to the arrest of 29 suspects in a frauds sweep that took place in both New York City and in the Buffalo-Niagara region. The suspects were accused of participating in a series of staged accidents in Western New York in which the drivers and several passengers in each car falsely claimed they were injured and sought medical treatment at clinics that were involved in the scheme. In some cases, the suspects who claimed injury were miles away in Brooklyn at the time of the alleged accidents. Another round of indictments, including doctors and lawyers who were involved in the medical mill operation, is expected in this continuing investigation.
-
ARSON 4
Arrested on 8/1/05
Charged insurance fraud in the 3rd degree, attempted grand larceny in the 3rd degree and falsely reporting an incident
The NYPD responded to a vehicle fire at 4:47 a.m. on 7/17/05 in Queens. The fire officer at the scene deemed the fire suspicious and referred the matter to the New York City Fire Marshals who, upon examination, determined that the cause of the fire was incendiary. An investigation by the Frauds Bureau and the Fire Marshals disclosed that the vehicle belonged to a Bronx man who had reported his vehicle stolen and filed a fraudulent claim for the loss with his insurer. During an interview with the Fire Marshal on 8/1/05 the defendant admitted that he was having problems with the vehicle and he therefore made arrangements with a man known to him only by his first name to have the car burned. He has agreed to cooperate in the investigation into the activities of the other man involved in the case. The case was referred by the Queens County DA’s Office to the Bronx County DA’s Office which will conduct the prosecution.
PRIOR SUPPLEMENTS
JULY 2005
- STAGED ACCIDENT
Arrested on 7/28/05
Charged with grand larceny and insurance fraud
A Bronx woman was accused of allowing her name to be added to a fictitious Police Accident Report after which she received more than $5,000 in medical treatment for nonexistent injuries under her no-fault insurance coverage. The combined efforts of the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad led to her arrest.
-
NO-FAULT FRAUD
Arrested on 7/12/05
Charged with insurance fraud and conspiracy
An unemployed woman from New Hyde Park, NY, was arrested and charged with participating in staged accidents in order to receive no-fault benefits to which she was not entitled. This is an ongoing investigation being conducted by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad in which prior arrests have been made.
MAY 2005
-
ARSON 5
Arrested on 5/24/05
Charged with arson in the 3rd degree, grand larceny in the 4th degree and insurance fraud in the 3rd degree
At 4:21 p.m. on 4/29/05, the NYPD responded to a vehicle fire in Brooklyn. Due to the suspicious nature of the fire, the fire officer on the scene referred the matter to the New York City Fire Marshals for further investigation. An examination on 5/2/05 disclosed that the fire was intentionally set. A Brooklyn man was arrested when an investigation by the Frauds Bureau and the Fire Marshals uncovered evidence that the defendant had set the fire himself and then filed a fraudulent claim with Liberty Mutual Insurance Company for the loss.
