Arrests for April 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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- GONE TOO FAR
Arrested on 4/27/06
Charged with grand larceny in the 3rd degree and scheme to defraud in the 1st degree
A special education teacher, formerly with the Cohoes City School District and now a New Hampshire resident, was accused of collecting thousands of dollars in disability benefits based on a fraudulent claim that she had cancer. She apparently shaved her head and wore a scarf to make her colleagues believe she had lost her hair from chemotherapy treatments. She filed allegedly fraudulent documents stating that she was unable to continue her employment. The defendant turned herself in to the Cohoes Police Department and was released on a $10,000 bond. An investigation by the Frauds Bureau and the Cohoes PD led to her arrest.
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UNWARRANTED BENEFITS
Arrested on 4/26/06
Charged with violation of the Workers’ Compensation Law
An investigation by the Frauds Bureau and the State Insurance Fund revealed that this suspect submitted statements to the Fund that she knew contained materially false information regarding her employment status. As a result, she collected $25,000 in benefits to which she was not entitled.
- TIGHT
Arrested on 4/26/06
Charged with insurance fraud in the 3rd degree and grand larceny in the 3rd degree
A disabled resident of Edmeston, NY, filed a claim with AIG Insurance Company, the insurer for Wal-Mart, for damage to his car. In support of his claim, he filed statements maintaining that a Wal-Mart mechanic had not properly tightened the oil plug after changing the oil in his car. AIG paid out $5,175 to reimburse him for the damage to his engine allegedly caused when the oil drained out. However, during an investigation by the Frauds Bureau and the Otsego County Sheriff’s Office, interviews were conducted and statements were taken from various parties. Among those interviewed was the mechanic who stated that his routine procedure was to tighten the oil plug and then use a torque wrench to ensure it was properly tightened. In addition, the family caseworker reported that the defendant’s wife told her that the defendant had intentionally drained the oil out of his car.
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WILD CONCOCTION
Arrested on 4/25/06
Charged with insurance fraud in the 4th degree
On 3/7/06, defendant #1 in this case submitted a claim to General Casualty Insurance Company for a slip-and-fall accident she allegedly was involved in. In support of the claim, she included four handwritten letters. The first was a cover letter from her explaining her loss. The second was from her employer, an antiques dealer, stating that she had missed three weeks of work. The third letter was from her boyfriend, defendant #2, stating that she had paid him $250 to care for her for three days due to the injury incurred in the fall. The fourth was from the boyfriend’s mother stating that she had paid her $115 to provide transportation to and from the doctor. In the course of the investigation, the Frauds Bureau obtained a sworn statement from the purported former employer stating that he closed his business in 1998 and sold the property for residential use. He further stated that the woman in question had never worked for him. On 4/25/06, defendant #1 signed a voluntary statement confessing that she and her boyfriend had concocted the entire scheme and that she had never paid the boyfriend or his mother for any care or transportation. The boyfriend subsequently confessed that he had forged the letter from the alleged former employer.
- MORTGAGE FRAUD
Arrested on 4/25/06
Charged with criminal enterprise, grand larceny in the 1st and 2nd degrees, scheme to defraud in the 1st degree and falsifying business records in the 1st degree
An investigation by the Frauds Bureau, the Attorney General’s Office, the New York State Banking Department, the Brooklyn and Suffolk County DAs’ Offices, the FBI, the U.S. Department of Labor, the New York State Department of Taxation and Finance and the New York-New Jersey Waterfront Commission led to the arrest of eight individuals for their participation in a multi-million dollar residential mortgage fraud scheme. Attorney General Spitzer also announced the filing of a civil forfeiture action seeking recovery of more than $8 million from the defendants. These defendants stole millions of dollars from banks and other financial institutions by submitting false and forged documents to secure mortgage loans. They paid people to represent themselves as legitimate real estate buyers (known as "straw buyers") and, in order to obtain the loans, provided the banks with reports that inflated individual properties by $100,000 or more. A scheme detailed in the indictment as an example involved the sale in January 2004 of a house in Brooklyn. The true purchase price was $310,000. However, this group informed the bank that the price was $450,000 and applied for a loan in that amount. The group provided the bank with false information about the financial condition of the person they paid to pose as a legitimate buyer and filed a forged appraisal report. They then pocketed the bulk of the inflated amount and allowed the loan to go into default.
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ARSON
Arrested on 4/22/06
Charged with insurance fraud in the 3rd degree, attempted grand larceny in the 3rd degree and falsely reporting an incident
The defendant in this case reported his 1996 Mercedes-Benz stolen in Queens, NY. Approximately one minute later, the vehicle was recovered burning in the Bronx. The FDNY determined that arson was the cause of the fire. In addition, an engineer’s report revealed that the steering column and ignition had not been tampered with and the car doors showed no signs of forced entry. At the time of his arrest, the defendant gave a statement admitting to insurance fraud. The Frauds Bureau and the NYPD pooled resources in this investigation.
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CONSPIRACY
Arrested on 4/21/06
Charged with insurance fraud in the 4th degree
An upstate farmer was arrested following a joint investigation conducted by the Frauds Bureau, the State Police, and Progressive Insurance Company. When his daughter was involved in an accident with a truck in December 2005, this defendant came to the scene to assist her in reporting the incident. However, the driver of the truck, Louis Felder, was driving a company-owned truck without official approval when he collided with the young woman in a shopping mall parking lot. Concerned that he might lose his job for unauthorized use of a company vehicle, Felder conspired with the father to report to the State Police and Felder’s insurer, Progressive, that he was driving his own personal vehicle at the time of the accident. Felder was arrested and in February 2006 pled guilty to falsely reporting an incident in the 3rd degree. His case is currently pending in the Town of Seneca Falls Court. The farmer was arrested on 4/21/06 and will appear in Court at a later date.
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FRAUDULENT CERTIFICATES
Arrested on 4/21/06
Charged with offering a false instrument for filing in the 1st degree
The defendant in this case presented to the Babylon Town Clerk’s Office Certificates of Workers’ Compensation Insurance that he knew contained false information. The Certificates were offered as proof that there was adequate workers’ compensation coverage in place for his employees when in fact there was not. His arrest was the result of an investigation by the Frauds Bureau and the State Insurance Fund.
- CORRECTION OFFICER NABBED
Arrested on 4/18/06
Charged with grand larceny, insurance fraud, perjury and tax evasion
A former correction officer at Sing Sing prison sustained a work-related injury to his knee in 2000 and began collecting workers’ compensation benefits. However, during a lengthy investigation by the Frauds Bureau, the Westchester County DA’s Office and the Workers’ Compensation Board, evidence was uncovered indicating that the suspect performed nearly $750,000 worth of home improvement construction at a number of locations in the County at the same time that he was collecting more than $110,000 in compensation benefits. Moreover, during numerous examinations under oath at workers’ compensation hearings, he repeatedly denied any such activity.
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CAR FIRE
Arrested on 4/18/06
Charged with insurance fraud and falsely reporting an incident
A New Jersey man reported to the NYPD on 3/12/06 that his 2005 Cadillac had been stolen. His mother, the registered owner of the vehicle, filed a claim with Allstate Insurance Company for the loss. However, an investigation by the Frauds Bureau revealed that the car had been found on fire by the FDNY on 3/8/06.
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NOT EVEN CLOSE
Arrested on 4/13/06
Charged with insurance fraud and falsifying business records
An investigation by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad resulted in the arrest of a Bronx man who was accused of fraudulently stating that he was a passenger in a vehicle that was involved in an accident. This defendant then sought and received medical treatment for nonexistent injuries under the no-fault portion of his auto insurance coverage.
- ALTERED REPORT
Arrested on 4/11/06
Charged with insurance fraud, conspiracy and falsifying business records
A Brooklyn laborer allegedly conspired with others previously arrested to alter a legitimate Police Accident Report to state that he was a passenger in a car that was involved in an accident when in fact he was not. Then in order to collect no-fault benefits, he received treatment for injuries that he never sustained.
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SERIOUS ARSON
Arrested on 4/11/06
Charged with insurance fraud in the 2nd degree and arson in the 3rd degree
A former part owner and full-time manager of a retail/wholesale tire store on Oneonta was charged for his alleged role in a fire that occurred at the store in August 2002. Dozens of firefighters spent hours risking their lives to extinguish the blaze. Selective Insurance Company paid out $480,000 for the losses the business incurred as a result of the fire. The investigation was conducted by the Frauds Bureau and the Otsego County DA’s Office, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New York State Arson Bureau and the State Police, as well as local and county fire investigators.
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FORGED CHECKS
Arrested on 4/10/06
Charged with grand larceny in the 3rd degree
An investigation conducted by the Frauds Bureau led to the arrest of a retired resident of Suffolk County accused of grand larceny. From May 2003 to February 2005, he allegedly cashed workers’ compensation benefit checks totaling more than $3,000 that were issued to his deceased father.
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NO EXCUSE
Arrested on 4/6/06
Charged with insurance fraud in the 3rd degree, grand larceny in the 3rd degree, arson in the 3rd degree and falsely reporting an incident
A couple was arrested on charges that on 10/10/05, the wife, with the knowledge of her husband, hired another person to steal their 2002 Chevrolet Venture and arrange to have it burned on the Tuscarora Indian Reservation. They filed a claim with State Farm Insurance Company which paid off the lien holder in the amount of $13,089. When arrested, the couple admitted that they were having financial difficulties and were unable to keep up the $350 monthly payments. Their arrest was the result of an investigation by the Frauds Bureau and the Niagara Falls Police Department.
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BAD TIMING
Arrested on 4/6/06
Charged with arson in the 3rd degree, grand larceny in the 3rd degree, insurance fraud in the 3rd degree and falsely reporting an incident
This suspect reported on 1/12/06 that her 2001 Chevrolet Cavalier was stolen in the Bronx where she had last seen it on 1/11/06. An investigation by the Frauds Bureau, the FDNY and Nationwide Insurance Company revealed that the FDNY had responded to an alarm in the Bronx on 1/10/06 where they found the suspect’s car on fire. During an examination under oath, the suspect admitted that she had deliberately destroyed the car for the insurance settlement.
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TOO LATE
Arrested on 4/4/06
Charged with insurance fraud in the 4th degree and falsifying business records
This defendant struck a guardrail with his pick-up truck on 1/6/06. At the time, the truck had only liability coverage. He immediately contacted Progressive Insurance Company and added comprehensive and collision insurance to his policy without informing the insurer about the accident. On 1/7/06, he parked the damaged truck in a shopping mall parking lot and reported to the Town of Clay Police Department that his truck was struck while parked unattended. He subsequently filed a $2,884 claim for the damage. An investigation by the Frauds Bureau and the Clay PD resulted in his arrest.
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ONE RING, LOST TWICE
Arrested on 4/4/06
Charged with insurance fraud in the 4th degree and falsifying business records
On 11/29/05, this suspect filed a claim with Nationwide Mutual Fire Insurance Company stating that she had lost her diamond engagement ring while on a camping trip. In support of the claim, she submitted an appraisal from the store where she had purchased the ring. The document reported that the ring had been purchased in 1988 and was valued at $1,600. However, an investigation by the Frauds Bureau and the State Police revealed that the suspect had reported losing the same ring in 1994 and was reimbursed by her insurer for the loss. On 3/27/06, she signed a confession admitting that the second claim was fraudulent.
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PRESCRIPTION DRUG FRAUD
Arrested on 4/4/06
Charged with criminal possession of a forged instrument in the 2nd degree, petit larceny and criminal possession of stolen property in the 5th degree
A Long Island construction worker forged or altered two drug prescriptions and presented them to a local pharmacy. The Frauds Bureau and the Queens DA’s Office combined efforts in the investigation that led to his arrest.
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MOVEABLE DATES
Arrested on 4/4/06
Charged with insurance fraud in the 3rd degree, arson in the 3rd degree and falsely reporting an incident
The defendant in this case reported to the NYPD on 1/19/06 that her 2002 Jaguar had been stolen in Manhattan. She stated that she had last driven the car on 1/18/06. However, during an investigation by the Frauds Bureau, it was discovered that her Jaguar had been recovered by the FDNY on 1/7/06 burned and abandoned, 11 days before she claimed to have last driven it.
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NO COMMUNICATION
Arrested on 4/4/06
Charged with grand larceny and fraud
An investigation by the Frauds Bureau, the State Comptroller’s Office and the Albany County DA’s Office led to the arrest of a Brooklyn contractor who was awarded more than 70 no-bid, emergency State contracts because he undercut competitors by allegedly underpaying workers and lying about how many employees worked for him. In February 2004, investigators learned that he had been prohibited from doing work for the federal government because he allegedly once attempted to bribe federal inspectors. However, the State Office of General Services did not check his background and there is no system connecting New York State with the federal list of questionable companies. Several counts of the 21-count indictment accuse him of stealing more than $50,000 from the State.
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DELIBERATE DAMAGE
Arrested on 4/1/06
Charged with insurance fraud in the 4th degree and falsifying business records in the 1st degree
A volunteer firefighter from Milford, NY, filed a claim with Nationwide Mutual Insurance Company reporting that extensive damage was done to a volunteer fire department emergency vehicle light bar, which was mounted on the roof of his personal auto, when his garage door malfunctioned. However, an investigation by the Frauds Bureau turned up evidence that this suspect intentionally caused the damage in an effort to collect an insurance payout.
PRIOR SUPPLEMENTS
MARCH 2006
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FRAUDULENT APPLICATION
Arrested on 3/27/06
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 New Jersey man charged with knowingly making false statements on an application for worker’ compensation insurance.
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WORKING WHILE COLLECTING
Arrested on 3/24/06
Charged with insurance fraud in the 4th degree and committing a fraudulent practice in violation of the Workers’ Compensation Law
While working at a female detention home, a hairdresser from Ithaca, NY, sustained an injury and began collecting workers’ compensation benefits. However, an investigation by the Frauds Bureau revealed that at the same time she was working at a local hair salon. As a result, she collected nearly $3,800 in benefits to which she was not entitled.
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WHAT ARE FRIENDS FOR
Arrested on 3/16/06
Charged with falsely reporting an incident in the 3rd degree and falsifying business records in the 2nd degree
This suspect reported that his car had been stolen from his residence and submitted a claim to Progressive Insurance Company for the loss. The car was subsequently recovered in a damaged state. An investigation by the Frauds Bureau revealed that the car had not been stolen at all. In fact, the suspect had lent the car to a friend, rendering the claim fraudulent.
FEBRUARY 2006
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OLD DAMAGE
Arrested on 2/22/06
Charged with insurance fraud in the 4th degree and falsifying business records in the 1st degree
An investigation by the Frauds Bureau resulted in the arrest of an upstate woman accused of submitting a fraudulent claim in the amount of $1,619 to Allstate Insurance Company for damage to her car that she said was caused in an auto accident. Evidence uncovered during the investigation revealed that State Troopers called to the scene found no damage to either vehicle from the accident. The suspect’s car had damage from a previous accident and she tried to claim that the damage was caused by the other vehicle’s hitch. However, investigators discovered that the hitch was recessed and could not have caused the damage. The suspect filed a claim in an effort to collect an insurance settlement.
JANUARY 2006
- ALTERED INVOICE
Arrested on 1/30/06
Charged with possession of a forged instrument in the 2nd degree and insurance fraud in the 5th degree
The defendant in this case was involved in an auto accident and when he filed a claim with Erie Insurance Company, he included an invoice that he had altered to increase the amount of his reimbursement. He was arrested following an investigation by the Frauds Bureau.
