Arrests for October 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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- CONVICTED
On 10/20/06, a Decatur, NY, man pleaded guilty to felony insurance fraud in connection with a dairy-barn fire that occurred on 4/20/03. The fire destroyed the barn and a tractor and damaged two silos, a house and a garage at the farm he owned jointly with his father. A plea deal required the man to admit guilt to insurance fraud and repay the family’s insurance company $50,000, perform community service and serve five years of felony probation. Based on a confidential tip, the Frauds Bureau and local law enforcement agencies in Otsego County initiated an investigation that revealed the farm was in deep financial difficulty at the time of the fire.
- ENHANCED CLAIM
Arrested on 10/31/06
Charged with insurance fraud in the 3rd degree, falsifying business records in the 1st degree and attempted grand larceny
An investigation by the Frauds Bureau led to the arrest of an upstate doctor who was accused of submitting a fraudulent claim to Nationwide Mutual Insurance Company. The claim provided a list of items the doctor stated were lost due to water damage in the basement of his home. However, investigators turned up evidence that his list included items not damaged, thereby enhancing the claim by $11,000.
- STOLEN CAR (NOT)
Arrested on 10/27/06
Charged with insurance fraud in the 3rd degree and falsifying business records in the 1st degree
The defendant in this case reported that her 1999 Chevrolet Trailblazer was stolen from the parking lot of her apartment building on 5/10/06. She subsequently filed a claim with GEICO Insurance Company and was reimbursed in the amount of $6,115 for the loss. However, an investigation by the Frauds Bureau and the Syracuse Police Department revealed that the car had not been stolen. In fact, the defendant was in full possession of the car when she filed the claim, when she received the reimbursement check on 6/23/06 and at the time of her arrest.
- FRAUDULENT BILLING
Arrested on 10/24/06
Charged with insurance fraud and possession of a forged instrument
An investigation by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad led to the arrest of a suspect for possessing fraudulent documents as proof that he was involved in several auto accidents. He used these documents to receive medical treatment for which a number of insurers were billed.
- NOT ENTITLED
Arrested on 10/24/06
Chargedwith insurance fraud in the 4th degree, offering a false instrument for filing in the 1st degree and violation of Section 114-1 of the Workers’ Compensation Law
This Utica, NY, suspect was injured on the job on 1/6/05 and filed for workers’ compensation benefits which he received through 8/10/06. On four separate occasions during that time, he certified to the State Insurance Fund that he had not worked in any capacity since the time of his accident. However, an investigation uncovered evidence that the suspect was indeed employed at a body shop in Poland, NY. As a result, he collected $1,410 in benefits to which he was not entitled.
- ALTERED REPORT
Arrested on 10/19/06
Charged with insurance fraud and falsifying business records
The defendant in this case was charged with submitting an altered Police Accident Report to GEICO Insurance Company in order to have his no-fault insurance claims paid. An investigation by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad led to his arrest.
- FRAUDULENT CERTIFICATE
Arrested on 10/17/06
Charged with Insurance fraud in the 5th degree, falsifying business records in the 1st degree and violation of Section 114-3 of the Workers’ Compensation Law
On 12/19/05, a Syracuse subcontractor presented a Certificate of Insurance to a contractor indicating that he had the necessary workers’ compensation coverage through the State Insurance Fund to perform the work. However, an investigation by the Frauds Bureau, the Fund and the State Police revealed that the Certificate was fraudulent and no such coverage was in place.
- NO COVERAGE
Arrested on 10/17/06
Charged with insurance fraud, falsifying business records and criminal possession of a forged instrument
In December 2005, this suspect presented an allegedly fraudulent Certificate of Insurance to a construction company as proof that he had the insurance coverage required by New York Insurance Law, when in fact no such coverage existed. The Frauds Bureau and the Queens DA’s Office pooled resources in the investigation that led to his arrest.
- FALSE DENIAL
Arrested on 10/17/06
Charged with grand larceny, insurance fraud, falsifying business records and offering a false instrument for filing
On an application for workers’ compensation insurance coverage from the State Insurance Fund, the defendant in this case denied that he had any previous policies with the Fund. However, a policy search conducted during an investigation by the Frauds Bureau and the Queens DA’s Office indicated that the defendant did have a prior policy that was cancelled with a balance due.
- 16-YEAR FRAUD
Arrested on 10/17/06
Charged with grand larceny, insurance fraud, and falsifying business records
The alleged nephew of a workers’ compensation beneficiary continued to cash her benefit checks for 16 years after her death. As a result of the fraud, he collected $178,579 to which he was not entitled. An investigation by the Frauds Bureau and the Queens DA’s Office led to his arrest.
- MATERIAL MISREPRESENTATION
Arrested on 10/16/06
Charged with grand larceny, insurance fraud, falsifying business records 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 Brooklyn man who denied on an application for workers’ compensation insurance with the State Insurance Fund that he had any prior policies with the Fund. However, evidence uncovered during the investigation showed that he had two prior policies with a total balance due of almost $26,300.
- ARSON FIRE
Arrested on 10/12/06
Charged with arson in the 3rd degree, insurance fraud in the 3rd degree, attempted grand larceny in the 3rd degree, making a punishable false written statement and falsely reporting an incident
On 9/4/06, an upstate hospital aide reported to the Town of Tonawanda Police Department that his 2006 Chevrolet Cobalt had been stolen from his residence and filed a $15,000 claim with Progressive Insurance Company for the loss. On 9/6/06, the car was recovered completely destroyed by fire by the Niagara Frontier Transportation Authority in Buffalo. A detective with the Tonawanda PD suspected arson for insurance money and reported his suspicions to the Frauds Bureau. The Buffalo Fire Department’s Fire Marshals agreed to assist in the investigation. And on 10/12/06 at the Fire Marshal’s Office, the suspect confessed to setting fire to his car in an effort to collect on his auto insurance policy.
- FOR OTHER AUTHORITIES
Arrested on 10/10/06
Charged with insurance fraud
As a result of an ongoing investigation being conducted jointly by the Frauds Bureau, the NYPD’s Document Fraud Squad, and the State of Pennsylvania prosecutor’s office, a Brooklyn man was arrested (FOA – “for other authorities”) on charges of insurance fraud on a warrant issued by the State of Pennsylvania.
- WORKERS’ COMP FRAUD
Arrested on 10/10/06
Charged with grand larceny in the 4th degree, insurance fraud in the 4th degree, falsifying business records in the 1st degree, offering a false instrument for filing and violation of Sections 114-1 and 96-1 of the Workers’ Compensation Law
This defendant was injured at his work place in an altercation with another employee in September 2004 and began collecting workers’ compensation benefits on 10/6/04. On numerous occasions from that time until his arrest, he certified to the State Insurance Fund that he was not employed. However, he was observed working at a supermarket in Queens. As of a result of the fraud, he received $2,784 in benefits to which he was not entitled. An investigation by the Frauds Bureau and the Queens DA’s Office led to his arrest. - HOUSE AFIRE
Arrested on 10/06/06
Charged with arson in the 3rd degree
An investigation by the Frauds Bureau and the State Police led to the arrest of an upstate man accused of setting fire to his home. The suspect filed a claim with New York Central Mutual Insurance Company for $130,000 for the loss and stated that he did not know the cause of the fire. However, the fire was ruled incendiary and the suspect later admitted to law enforcement officials that he had poured gasoline around his bed and lit the fire.
- WORKING WHILE COLLECTING
Arrested on 10/05/06
Charged with violation of Section 114-1 of the Workers’ Compensation Law
Following a work-related injury, the defendant in this case began collecting workers’ compensation benefits. On numerous occasions between May 2002 and June 2006, he certified to the State Insurance Fund that he was not employed. But evidence proved otherwise. As a result of the fraud, he collected more than $78,000 in benefits to which he was not entitled. The Frauds Bureau and the State Fund conducted the joint investigation that led to his arrest.
- WHAT A COUPLE
Arrested on 10/03/06
Charged with insurance fraud in the 3rd degree
In August 2005, while riding a motorcycle owned, registered to, and insured by the girlfriend in this case, the boyfriend was involved in an unreported, at-fault accident causing damage to the motorcycle. At the time of the accident, no collision coverage was in place. Together they brought the motorcycle to the repair shop where they were told the damage could not be repaired. It was a total loss. During an investigation by the Frauds Bureau, the State Police Auto Theft Unit and Progressive Insurance Company’s SIU, investigators learned that the couple retrieved the motorcycle from the repair shop and, six months later, in February 2006 the girlfriend re-insured it with Progressive with full coverage. In April 2006, the boyfriend reported to the Rochester Police Department that the motorcycle had been stolen from a location in Rochester where he had left it parked. The girlfriend filed a claim with Progressive for the loss. When confronted with the evidence, both confessed to attempting to defraud Progressive of $6,600.
- PREMIUMS DUE
Arrested on 10/02/06
Charged with violation of Section 114-3 of the Workers’ Compensation Law
An investigation by the Frauds Bureau and the Suffolk County DA’s Office led to the arrest of a Long Island man charged with workers’ compensation fraud. It is alleged that he, while working in concert with another person not arrested, presented an application for workers’ compensation and employers’ liability insurance to the State Insurance Fund that he knew contained materially false information about a prior policy with the Fund. Evidence uncovered during the investigation revealed that he had a prior policy cancelled with a balance of more than $27,000 in premiums due.
- NO-FAULT FRAUD
Arrested on 10/02/06
Charged with insurance fraud, falsifying business records and conspiracy in the 6th degree
Using a Police Accident Report that she had altered, the defendant in this case sought and received medical treatment under the no-fault portion of her auto insurance coverage which was subsequently billed to her insurer. Her arrest was the result of the combined efforts of the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad.
PRIOR SUPPLEMENTS
SEPTEMBER 2006
- FORGED CERTIFICATE
Arrested on 9/26/06
Charged with criminal possession of a forged instrument in the 2nd degree and forgery in the 2nd degree
In August 2006, the Frauds Bureau received a letter from a Buffalo insurance agency with an attached Certificate of Liability Insurance for a floor design company owned by the suspect in this case. The period covered by the Certificate was purportedly 6/1/06 through 6/1/07. The sender stated that the suspect had not been a client of his agency since 2001. An investigation initiated by the Frauds Bureau and the Cheektowaga Police Department uncovered evidence that the suspect submitted a forged Certificate of Insurance to a contractor as proof of workers’ compensation coverage through Reliance Insurance Company and a second forged Certificate for liability coverage through Selective Insurance Company. Further investigation revealed that Reliance had not done business in New York State since December 2001 and that the suspect had not had a liability insurance policy with Selective since September 2000.
- FALSE REPORT
Arrested on 9/22/06
Charged with attempted grand larceny, insurance fraud, offering a false instrument for filing and making a punishable false written statement
The husband of a New Jersey woman reported to the NYPD that her car had been stolen in the Bronx between 2:00 p.m. and 9:00 p.m. on 6/11/06. However, an investigation by the Frauds Bureau revealed that her car had been recovered on fire by the FDNY at 3:55 a.m. that same day, many hours before the alleged theft.
- NONEXISTENT INJURIES
Arrested on 9/22/06
Charged with insurance fraud in the 3rd degree
This suspect was involved in a staged accident after which he sought and received more than $14,000 in medical treatment for nonexistent injuries under the no-fault portion of his auto insurance coverage. The Frauds Bureau teamed up with the NYPD’s Fraudulent Accident Investigation Squad in this investigation.
