Arrests for February 2007
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
Maxim Levin, a medical clinic operator in Buffalo, pled guilty to participating in a staged accident fraud scheme. He is the 25th suspect to plead guilty of the 30 originally arrested in a frauds sweep that took place in New York City and in the Buffalo-Niagara region in August 2005. The suspects were accused of participation 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. As part of his plea, Levin also confessed to conspiracy to possess and distribute more than 500 grams of cocaine from April 2003 to May 2004. Prosecutors said he sold cocaine to an FBI agent on several occasions
- INTERNET FRAUD
Arrested on 2/27/07
Charged with criminal diversion of prescription medications and prescriptions, criminal sale of a controlled substance and insurance fraud
An investigation into Internet drug sales by the Albany County DA's Office, working with the Frauds Bureau, the New York State Health Department and drug enforcement officials, the Florida Attorney General's Office, the U.S. Justice Department and the IRS, led to the arrest of four suspects with ties to a pharmacy in Orlando, FL., that did an estimated $6 million in business in New York State last year. Arrested during a raid on the pharmacy were the husband and wife who co-owned the business, the husband's pharmacist brother, and the company's marketing director. The pharmacy allegedly filled prescriptions for steroids and human growth hormones via the Internet in order to exploit federal and state prescription drug laws. New York has some of the strictest drug laws in the country. The prescriptions were submitted by doctors both licensed and unlicensed who did not even know their "patients." More suspects, including doctors, pharmacists and business owners, are expected to be arrested in this ongoing investigation.
- HARDLY DISABLED
Arrested on 2/22/07
Charged with insurance fraud in the 2nd degree and committing a fraudulent practice under Section 114.01 of the Workers' Compensation Law
Based on a report of suspected fraud submitted by the State Insurance Fund, the Frauds Bureau initiated an investigation into the activities of a disabled former New York State Correction Officer now living in Florida. The suspect was awarded permanent partial disability benefits on 11/18/98, following an injury on the job. A Frauds Bureau investigator traveled to Florida where further investigation revealed that the suspect owned and operated a business that took in an annual gross income of more than $1 million. Over the years between 1998 and his arrest on 2/22/07, he collected more than $100,000 in benefits to which he was not entitled. When confronted with the evidence, the suspect provided a signed statement admitting to the fraud. The investigation was conducted with the assistance of the Florida State Attorney General's Office and the Florida Division of Insurance Fraud.
- STAGED ACCIDENT
Arrested on 2/21/07
Charged with insurance fraud and falsifying business records
The defendant in this case was arrested on charges that, while working in concert with two other suspects previously arrested, he staged an accident, submitted a fraudulent accident report and signed an application for no-fault benefits. As a result, GEICO Insurance Company was billed for more than $3,000 for treatment of nonexistent injuries. The Frauds Bureau and the NYPD's Fraudulent Accident Investigation Squad pooled resources in this investigation.
- COLLECTING WHILE WORKING
Arrested on 2/20/07
Charged with falsifying business records in the 1st degree and violation of Section 114 of the Workers' Compensation Law
As a result of a work-related injury on 9/23/97, an upstate waitress began collecting workers' compensation benefits. On a number of occasions since that time, she submitted statements to AIG Insurance Company claiming that she had not returned to work of any kind. However, during an investigation by the Frauds Bureau, the Orange County Sheriff's Department and the Workers' Compensation Fraud Inspector General's Office, she was observed working as a waitress in a local diner. The suspect subsequently gave a written statement admitting to working while she was collecting benefits to which she was not entitled.
- NOT INVOLVED
Arrested on 2/19/07
Charged with insurance fraud and falsifying business records
An investigation by the Frauds Bureau and the NYPD's Fraudulent Accident Investigation Squad led to the arrest of a Bronx woman accused of submitting an application for no-fault benefits in connection with an accident in which she was not involved. As a result, her insurance company was billed for more than $3,000 for treatment of nonexistent injuries.
- FALSE CLAIM
Arrested on 2/14/07
Charged with insurance fraud in the 3rd degree and attempted grand larceny in the 3rd degree
On 9/1/06, this defendant reported to the Lockport Police Department that while he was walking behind the gas pumps at a local service station, a vehicle backed into him, striking his left leg and knee, causing him to fall and land on his tailbone. He stated that the driver had left the scene without identifying herself. On 9/11/06, the defendant submitted an application for no-fault benefits to Erie Insurance Company and included Verification of Self-Employment Income and Mileage Reimbursement of Out-of-Pocket Expenses forms in support of his claim. In the meantime, the Lockport Police Department located the driver in question who stated that she didn't realize she had backed into the defendant. During an investigation conducted jointly by the Frauds Bureau, the Lockport Police Department and the Niagara County DA's Office, a review of surveillance tapes at the service station made clear that the purported accident never happened. In addition, the supporting documents submitted with the no-fault application were fraudulent. The value of the claim was $7,764.
- EX-WIFE
Arrested on 2/14/07
Charged with insurance fraud in the 3rd degree
On 12/1/05, the owner of a bowling alley in Brockport submitted an application for health insurance stating that a woman who shared his last name was his wife. In October 2006, after a number of claims had been submitted in the "wife's" name, her medical provider contacted Excellus Health Plan to verify her coverage and was informed that the suspect and his "wife" were divorced. An investigation by the Frauds Bureau revealed that as part of the divorce settlement, the suspect was ordered to provide health insurance for his ex-wife. By including her on his health insurance plan, he avoided a more costly individual plan.
- CAUGHT ON THE INTERNET
Arrested on 2/9/07
Charged with insurance fraud in the 3rd degree
Following an investigation by the Frauds Bureau and the Schoharie County DA's Office, a Sharon Springs couple was arrested in connection with a suspected fraudulent auto insurance claim submitted to Progressive Insurance Company. Defendant #1 allegedly drove her 2001 Dodge Durango into a ditch either late on 12/30 or early on 12/31/06. At the time, she was driving without insurance because it had been cancelled on 12/27/06 for nonpayment of premiums. So defendant #2 obtained insurance for the car on 1/2/07 and filed the claim on 1/3. Progressive's claims adjuster examined the car on 1/4 and determined from the rust build-up that the accident had to have occurred more than one day before. What tipped off investigators, in part, were photos of the accident scene reportedly posted on MySpace.com before the claim was made with the caption: "This is what happens when you drink and drive."
- COLLECTING IN JAIL
Arrested on 2/9/07
Charged with insurance fraud in the 4th degree and fraudulent practices under the Workers' Compensation Law
A Syracuse man already serving a prison sentence on an unrelated charge was arrested for workers' compensation fraud. He stated on State Insurance Fund forms that he was not incarcerated nor convicted of a crime at the same time he was serving two-to-four years for a felony drug conviction. Checks mailed to his home were cashed by a family member who gave the money to him or redirected it to others at his request. As a result of the scam, the suspect collected $4,018 in benefits from the Fund to which he was not entitled. He was transported from the Oneida Correctional Facility and arraigned in Onondaga County Supreme Court. In addition to the Frauds Bureau, the State Fund, the Workers' Compensation Fraud Inspector General's Office and the Onondaga County Sheriff's Office cooperated in the investigation that led to his arrest.
- NO COVERAGE
Arrested on 2/8/07
Charged with forgery in the 2nd degree and criminal possession of a forged instrument in the 2nd degree
In February 2003, the defendant in this case applied for and received a building permit for a property in the town of Pittsford. Several months later, the home and property were sold. When the homeowner experienced problems with the foundation and filed a claim against the builder, he discovered that the builder had no liability insurance coverage. An investigation by the Frauds Bureau revealed that the Certificate of Insurance the builder submitted to the town of Pittsford with his application for the building permit was altered to show that insurance coverage was in place. On 1/31/07, the defendant gave a statement to Frauds Bureau investigators admitting that he had altered the Certificate of Insurance because he could not afford the insurance premiums. On 2/8/07, he turned himself in to the State Police and was charged.
- NONEXISTENT INJURIES
Arrested on 2/7/07
Charged with insurance fraud and falsifying business records
A Brooklyn man, while acting in concert with two others not yet arrested, allegedly conspired to stage an accident by purposely driving their car into another car. The three then sought and received medical treatment for nonexistent injuries for which the insurer was billed more than $10,000. His arrest was the result of an investigation by the Frauds Bureau and the NYPD's Fraudulent Accident Investigation Squad.
- 3 DAYS, NOT 30
Arrested on 2/2/07
Charged with insurance fraud in the 5th degree and falsifying business records in the 1st degree
A man injured while he was a passenger in an auto accident filed a claim with Nationwide Insurance Company for disability benefits. In support of his claim, he included a copy of a document of patient instructions that he received from the hospital where he was treated. However, an investigation by the Frauds Bureau revealed that he altered the document to say that he could not return to work for 30 days, up from the 3 days the hospital had recommended. On 2/1/07, the suspect provided a signed statement in which he admitted that he had altered the document in an effort to extend the term of his disability benefits.
- TOTALED, NOT
Arrested on 2/1/07
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 this suspect who was accused of submitting a fraudulent accident report to Allstate Insurance Company. The report falsely claimed that his car had been totaled in an accident. Allstate paid out $12,412 for replacement of the car.
- IDENTITY THEFT
Arrested on 2/1/07
Charged with insurance fraud in the 5th degree, identity theft in the 2nd degree and offering a false instrument for filing in the 1st degree
On 9/15//06, a car insured by GEICO Insurance Company struck another car in the City of Rochester, causing damage. The driver fled the scene but witnesses provided the license plate number of the fleeing vehicle to the Rochester Police Department. Subsequently, a woman purporting to be the owner of the car reported to GEICO that the car had been stolen on a date prior to the hit-and-run. However, an investigation by the Frauds Bureau, the Rochester Police Department's Auto Theft Unit and GEICO's SIU found evidence that the owner of the car in question was dead and her granddaughter had assumed her identity and registered and insured the car with GEICO. In written statements to the insurer, the defendant represented herself as her grandmother. She eventually confessed to identity theft and to filing a fraudulent damage claim.
PRIOR SUPPLEMENTS
JANUARY 2007
- CAR FIRE
Arrested on 1/30/07
Charged with insurance fraud in the 3rd degree and falsely reporting an incident in the 3rd degree
On 10/3/06, a Niagara Falls man reported to the Niagara Police Department that his 2006 Chevrolet Equinox had been stolen from his residence. A week later, on 10/10, the car was recovered in Buffalo destroyed by fire. During an investigation conducted by the Frauds Bureau and the Niagara Falls and Buffalo Police Departments, the suspect denied any knowledge of the theft but he admitted giving a can of gasoline to someone to burn the car. In a follow-up investigation in Niagara Falls, the person to whom the suspect said he had given the gasoline denied any involvement in the theft or the fire. The suspect was arrested and charged with the crimes.
- COOLER GONE
Arrested on 1/22/07
Charged with insurance fraud in the 3rd degree
A Schenectady restaurant owner filed an allegedly fraudulent claim for nearly $12,000 for a cooler she said was stolen. The suspect stated that the cooler was illegally taken in an ongoing dispute with a neighboring business owner and that when returned, the cooler and an electric line were damaged and all the food inside was destroyed. An investigation by the Frauds Bureau revealed that the cooler had been on the neighboring property and for months she had been told to remove it. When she did not, the neighboring businessman had it removed. The cooler, valued at $3,000, was located by the police who made arrangements for its return. Yet, the suspect filed the claim.
- PRE-EXISTING DAMAGE
Arrested on 1/20/07
Charged with insurance fraud in the 3rd degree and attempted grand larceny
A joint investigation by the Frauds Bureau, the Rochester Police Department's Field Investigative Services and Clarendon Insurance Company's SIU led to the arrest of a Rochester man accused of trying to defraud Clarendon of almost $3,700. This defendant reported that on 8/18/06, his 1994 Lincoln Continental was stolen from the driveway of his home. When the car was subsequently recovered and returned to him, he claimed that the engine and other mechanical components had been damaged by the thief. However, the investigation found evidence that the damage pre-existed the theft and the suspect had full knowledge of that fact.
