Arrests for March 2006
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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GUILTY
The owners of a Staten Island insurance agency, Michael and Connie Tramontano, were ordered to pay $125,000 in restitution under a plea bargain reached in State Supreme Court on 3/8/06. Mr. Tramontano pled guilty to four counts of forgery and one count of scheme to defraud, all felonies. Mrs. Tramontano pled guilty to a felony forgery charge and a misdemeanor petit larceny count. The felony charge will be vacated if the victims are repaid by the 4/17/06 sentencing date. Between April 2002 and October 2003, when authorities shut down their business, the couple defrauded about 40 clients by pocketing auto insurance premiums, issuing phony insurance identification cards and altering checks. Under the plea agreement, Mr. Tramontano will be sentenced to 45 days in jail and five years’ probation. Mrs. Tramontano will receive three years’ probation. However, both will face a maximum to 2 1/3-to-seven years in prison if they fail to make restitution. The arrests were the result of an investigation conducted by the Frauds Bureau and the Staten Island DA’s Office.
- HIS AND HERS? NEITHER
Arrested on 3/30/06
Charged with criminal possession of a forged instrument in the 2nd degree and grand larceny in the 4th degree
An investigation by the Frauds Bureau, the State Insurance Fund, the State Police and the Workers Compensation Fraud Inspector General’s Office led to the arrest of a 24-year-old student and her 27-year-old boyfriend. The student did not inform the State Insurance Fund about the death of her mother in April 2005. Instead, she continued to receive the workers’ compensation checks issued to her deceased mother, forged her mother’s signature and deposited them into the bank account of her boyfriend. The couple used the money, which totaled $2,915, for their personal expenses.
- NO WAGES LOST
Arrested on 3/28/06
Charged with insurance fraud in the 5th degree and falsifying business records in the 1st degree
On 12/21/04, the defendant in this case was injured in an accident while driving her mother’s car. In August 2005, she informed Progressive Insurance Company that she had been unable to work since the accident and applied for no-fault lost wage benefits. However, an investigation by the Frauds Bureau and Progressive revealed that the defendant had been employed during the entire time that she claimed to be unable to work. On 3/22/06, she signed a sworn statement admitting that she had provided false information to her insurer. Investigators from the Frauds Bureau and the State Police arrested her on 3/28/06.
- AGENT FRAUD
Arrested on 3/27/06
Charged with grand larceny and petit larceny
An investigation by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad resulted in the arrest of an insurance agent who was accused of collecting more than $1,000 in insurance premiums but failing to forward the money to an insurer to secure coverage for his clients.
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WHY TWO WHEELCHAIRS?
Arrested on 3/23/06
Charged with insurance fraud in the 4th degree and falsifying business records in the 1st degree
Following a fire at his home, the suspect in this case filed a claim with Wayne Cooperative Insurance Company for the loss of two wheelchairs valued at $1,600 that he said were destroyed in the fire. He informed the insurer that he had purchased both wheelchairs within the past year at a local medical supply store. However, during an investigation by the Frauds Bureau, the owner of the medical supply store stated that he had sold one wheelchair worth less than $300 to the suspect back in 1995. On 3/21/06, the suspect signed a confession admitting that the claim he submitted was fraudulent.
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70 IS FAR FROM 3
Arrested on 3/23/06
Charged with grand larceny, insurance fraud and conspiracy
An investigation by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad led to the arrest of the owner of a livery car company. He was charged with presenting documents to AIU Insurance Company stating that he owned only three vehicles when in fact he owned more than 70. He thereby defrauded the insurer of more than $1 million in premiums.
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STOLEN CHECKS
Arrested on 3/21/06
Charged with grand larceny in the 4th degree
A truck driver from Long Island was accused of cashing $1,800 in workers’ compensation benefit checks issued to his deceased mother. The Frauds Bureau and the Suffolk County DA’s Office conducted the investigation that led to his arrest.
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TWO BODY SHOPS CLOSED, OWNERS ARRESTED
Arrested on 3/21/06
Charged with insurance fraud
Following a lengthy undercover investigation, the owner of a Suffolk County auto body shop was arrested and charged with insurance fraud. The shop allegedly enhanced damages to cars in order to generate larger insurance payouts. In addition, they billed insurers for work that was unnecessary or not done at all and billed for used replacement parts that they claimed were new. This investigation also resulted in the arrest of another body shop owner on 11/4/05 on similar charges. The Frauds Bureau, the Suffolk County Police Department and the Suffolk County DA’s Office conducted the investigation with the assistance of Liberty Mutual, GEICO and Chubb Insurance Companies.
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ALL IN THE FAMILY
Arrested on 3/15/06
Charged with enterprise corruption, insurance fraud, falsifying business records, grand larceny and conspiracy
A two-year investigation led to the arrest on 3/15 of a well known Albany area prizefighter and his wife, father, sister, brother and sister-in-law for staging accidents and filing fraudulent insurance claims. The matriarch of the family was arrested the following day. They are suspected of staging hundreds of accidents over the past 15 years, targeting elderly and drunken drivers. They then filed claims and collected as much as $750,000 in phony insurance payouts. They were able to escape detection for so long because they kept the accidents relatively minor and filed claims for relatively small insurance payments. The arrests were the result of the joint efforts of members of an auto fraud task force that included the Frauds Bureau, the Albany Police Department, the Albany DA’s Office and the Department of Motor Vehicles.
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A FRIEND IN NEED
Arrested on 3/14/06
Charged with criminal possession of a forged instrument
On three occasions during 2005, the defendant in this case presented forged prescriptions at pharmacies for the controlled substance Norco. An investigation by the Frauds Bureau and the Monroe County DA’s Office revealed that a dentist friend of the suspect gave him the prescriptions written on the pads of two partners in his dentistry practice. The suspect subsequently admitted that he received the prescriptions in exchange for some repair work he did on the dentist’s car. The dentist himself was arrested on 1/10/06 on charges that, on six occasions between January 2004 and March 2005, he forged the names of his partners on prescriptions he had made out to himself. These prescriptions were filled and subsequently billed to Excellus Health Plan under his personal health insurance policy.
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A.K.A.
Arrested on 3/13/06
Charged with criminal possession of a forged instrument and offering a false instrument for filing
An investigation by the Frauds Bureau and the Queens DA’s Office resulted in the arrest of a New York City security guard who was accused of applying for a New York State driver’s license under two different names and dates of birth. He was also in possession of an allegedly fraudulent driver’s license.
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EMPLOYEE FRAUD
Arrested on 3/8/06
Charged with grand larceny in the 2nd degree
A personal injury claims unit manager employed by AIG Insurance Company was charged with defrauding her employer of $125,000. She issued claim checks in her granddaughter’s name and the name of a friend, sent them to her own home and deposited them into her account. The investigation was initiated after AIG’s internal affairs unit learned that the suspect’s granddaughter was issued a check. The suspect subsequently confessed to the crime and was remanded to the Albany County Correctional Facility without bail. The Frauds Bureau made the arrest with the assistance of the State Police.
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REPAIRS NEEDED
Arrested on 3/6/06
Charged with insurance fraud in the 3rd degree and attempted grand larceny in the 3rd degree
On 7/8/05, an upstate office worker reported to the Niagara County Sheriff’s Department that his 1996 Lincoln Town Car was stolen from the parking lot at work. In a sworn affidavit and in an examination under oath, he stated that his car was in excellent condition at the time of the theft. However, an investigation by the Frauds Bureau and the Niagara County District Attorney’s Office found evidence that the car required major repair because of damage caused by overheating. During an interview, the suspect admitted that he had materially misrepresented the true condition of the car in the affidavit and at the examination. However, he denied any involvement in the theft.
- FORGED CERTIFICATE
Arrested on 3/3/06
Charged with violation of the Workers’ Compensation Law
The defendant in this case presented a Certificate of Insurance to the State Insurance Fund that he knew was forged in an effort to avoid paying $9,100 in owed premiums. The Frauds Bureau and the State Fund pooled resources in this investigation.
- BACK PREMIUMS DUE
Arrested on 3/1/06
Charged with violation of the Workers’ Compensation Law
An investigation by the Frauds Bureau and the State Insurance Fund led to the arrest of a Long Island machine operator who was accused of knowingly presenting a Certificate of Insurance to the State Fund that contained materially false information in order to avoid paying $5,100 in back premiums.
PRIOR SUPPLEMENT
FEBRUARY 2006
- NO-FAULT FRAUD
Arrested on 2/23/06
Charged with insurance fraud
The defendant in this case, while acting in concert with another person not yet apprehended, sought and received medical treatment for nonexistent injuries under the no-fault portion of his auto insurance coverage. The Frauds Bureau and the NYPD's Fraudulent Accident Investigation Squad jointly conducted the investigation that led to his arrest.
