Arrests for April 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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- FALSE INFORMATION
Arrested on 4/23/07
Charged with insurance fraud in the 3rd degree and grand larceny in the 3rd degree
After sustaining a work-related injury, the defendant in this case submitted a statement to Travelers Insurance Company in support of his workers’ compensation claim that allegedly contained materially false information regarding the extent of his injuries and the level of his disability. An investigation by the Frauds Bureau led to his arrest.
- BROTHERS
Arrested on 4/23/07
Charged with insurance fraud in the 3rd degree, attempted grand larceny in the 3rd degree, falsifying business records in the 1st degree and conspiracy in the 5th degree
The Frauds Bureau and the Attorney General’s Office conducted an investigation that led to the arrest of two brothers suspected of filing a fraudulent no-fault auto insurance claim. The claim stated that while repairing a gas leak on a 1998 Chevrolet Blazer insured by New York Central Mutual Insurance Company, one of the brothers was set on fire. However, the investigation uncovered evidence that the injury actually occurred while they were doing repair work on an uninsured dump truck.
- SIX AND COUNTING
Arrested on 4/19/07
Chargedwith insurance fraud
A New York City woman was the sixth suspect to be arrested in this ongoing investigation involving staged accidents and medical mills. A fifth suspect was arrested on 3/12/07. The investigation is being conducted jointly by the Frauds Bureau, the Manhattan DA’s Office and the NYPD’s Fraudulent Accident Investigation Squad.
- NOT INVOLVED
Arrested on 4/17/07
Chargedwith insurance fraud and falsely reporting an incident
The two defendants in this case submitted an allegedly fraudulent Police Accident Report to Allstate Insurance Company stating that they were involved in an auto accident after which they received medical treatment under no-fault insurance coverage. However, an investigation by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad revealed that although the suspects were present at the scene of the accident, neither was in any way involved.
- OH, DEER
Arrested on 4/17/07
Chargedwith insurance fraud in the 3rd degree and falsifying business records in the 1st degree
A self-employed laborer reported to New York Central Mutual Fire Insurance Company that his car struck a deer, causing it to roll over and incur extensive damage. The insurer paid out $7,000 for the loss. However, an investigation by the Frauds Bureau turned up evidence that the defendant was not driving the car at the time of the accident. Investigators suspect that the driver was his son, who has had his license suspended numerous times for violations. The operator who towed the car to his shop took photos of the car, none of which showed signs that a deer was involved in the accident. It seems that the defendant did not have collision coverage on the car so in order to have the damage covered by his insurer, he planted deer hair on the car to make it appear that a deer had been involved.
- THREE STRIKES, YOU’RE OUT
Arrested on 4/16/07
Chargedwith insurance fraud in the 3rd degree and grand larceny in the 3rd degree
An investigation by the Frauds Bureau, the Greece Police Department and Allstate Insurance Company’s SIU resulted in the arrest of a Rochester man for filing three fraudulent homeowner claims. On 12/2/06, he reported to Allstate that four factory wheels and tires and a floor jack had been stolen from his backyard. The items were valued at $3,000 but because of a policy limit for vehicle parts not attached to a vehicle, Allstate issued a check for $1,200. The defendant then filed a second claim stating that four factory wheels and tires were removed from his vehicle and stolen. This time, Allstate issued a check for $3,364 for the loss. A day after receiving the second check, he filed a third claim, stating that in addition to the wheels, tires and floor jack stolen on 12/2/06, the thieves got away with about $1,000 in jewelry and coins. The defendant was interviewed and subsequently confessed to the fraud.
- STOLEN CHECK
Arrested on 4/12/07
Chargedwith forgery in the 2nd degree and petit larceny
The Frauds Bureau received a complaint on 2/16/07 from a woman who stated that a homeowners insurance claim check issued to her and her daughter on a property they owned jointly had been stolen. The check contained three signatures: hers which she knew was a forgery and her daughter’s which she knew was forged because her daughter had died a few months earlier. The third signature was that of a man with whom the daughter had been living at the property in question. The man had continued to live there after her death. It was to that property that the check had been mailed. The Frauds Bureau initiated an investigation and during questioning, the suspect admitted that he had forged the signatures, cashed the check and deposited $867.14 into his credit union.
- BORROWED EQUIPMENT
Arrested on 4/3-4/07
Chargedwith forgery, criminal possession of a forged instrument and insurance fraud
An investigation by the Frauds Bureau and the Monroe County Sheriff’s Office led to the arrest of two men accused of participating in a homeowners insurance fraud scheme. Defendant #1 borrowed approximately $3,500 worth of sound equipment from a local community center. But the equipment was subsequently stolen when his car was broken into on 8/22/06. He was liable for repaying the center but had no money to do so. Defendant #2 in this case, a friend who worked at the center, created a bogus receipt for the purchase of the equipment using the center’s letterhead which defendant #1 then included in support of a claim that he submitted to Nationwide Insurance Company against his parents’ insurance policy. On 3/27/07, he gave a voluntary written statement to investigators admitting the fraud. On 4/3/07, he surrendered at the Sheriff’s Office and was charged with insurance fraud in the 4th degree and criminal possession of a forged instrument in the 2nd degree. On 3/29/07, defendant #2 provided a voluntary oral confession and on 4/4/07, he surrendered and was charged with forgery in the 2nd degree and criminal possession of a forged instrument in the 2nd degree.
PRIOR SUPPLEMENTS
MARCH 2007
- SENTENCED
When the brother of a home health care worker was shot and seriously wounded in June 2001, her co-worker, who was also an agent for Combined Life Insurance Company of New York, persuaded her to take out an accident and disability policy and name herself as beneficiary. The insurance agent backdated the application to a date prior to the shooting and the policy was issued. The home health care worker filed a claim with Combined Life and was paid a settlement of $15,500. The agent was arrested on 5/31/06 and her accomplice on 5/30. On 3/16/07, the agent was sentenced to a three-year conditional discharge and ordered to pay $15,500 in restitution. Her co-worker received a sentence of five years’ probation and restitution already paid. Cooperation among investigators from the Frauds Bureau, the State Police and Combined Life led to the arrests.
- FRAUDULENT CERTIFICATE
Arrested on 3/30/07
Chargedwith insurance fraud in the 4th degree, falsifying business records in the 1st degree and fraudulent practices under Section 114-3 of the Workers’ Compensation Law
In November 2005, the owner of a home set-up and repair business submitted a Certificate of Insurance indicating that he had the necessary workers’ compensation insurance coverage to perform a contracting job. However, an investigation by the Frauds Bureau, the State Insurance Fund and the State Police revealed that no such coverage was in place.
- NO PAYMENT
Arrested on 3/29/07
Chargedwith insurance fraud in the 4th degree, attempted grand larceny in the 4th degree and conspiracy in the 5th degree
On 1/9/07, suspect #1 in this case reported to the Niagara County Sheriff’s Department that his 2000 Bombadier Snowmobile had been stolen from his back yard where he had left it chained to a tree. He subsequently filed a claim with Nationwide Insurance Company for the loss. However, an investigation by the Frauds Bureau, the Niagara County DA’s Office and Sheriff’s Department and Nationwide’s SIU uncovered evidence that he had conspired with suspect #2 to have his car stolen for the insurance proceeds. As a result of the investigation, Nationwide was spared a $2,815 payout.
- ARSON
Arrested on 3/1/07
Chargedwith arson in the 3rd degree, insurance fraud in the 3rd degree and grand larceny in the 4th degree
The defendant in this case reported to the police and her insurer that her 2005 Mitsubishi Eclipse had been stolen on 1/22/07. However, an investigation conducted jointly by the Frauds Bureau and the FDNY’s Bureau of Fire Investigation turned up evidence that she arranged to have the car deliberately set on fire in order to collect an insurance settlement. One clue was that she made conflicting statements as to the time she had last driven the car. She admitted the fraud during an interview with investigators.
FEBRUARY 2007
- ALL IN THE FAMILY
Arrested on 2/28/07
Chargedwith insurance fraud in the 2nd degree and submitting a false written statement
A Connecticut resident reported to the police and his insurer that his 2006 BMW had been stolen. However, an investigation by the Frauds Bureau and the Yonkers Police Department revealed that he acted in concert with his brother and sister to have his car deliberately destroyed by fire in the Bronx where it was found on 1/6/07.
