Arrests for July 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
- STAGED BURGLARY
Arrested on 7/27/07
Chargedwith insurance fraud in the 3rd degree
On 8/14/06, the defendant in this case reported to the Canandaigua Police Department that his home was broken into and $70,000 worth of jewelry was stolen. He subsequently filed a claim with Sterling Insurance Company maintaining that the items stolen were valued at $157,000. Investigators from the Frauds Bureau and the State Police interviewed the defendant during their investigation and he confessed to staging the burglary. He said he was having financial difficulty and planned to use the insurance proceeds to pay his bills.
- AIN’T LOVE GRAND
Arrested on 7/27/07
Chargedwith insurance fraud in the 5th degree
A joint investigation conducted by the Frauds Bureau, the Niagara County DA’s Office, the North Tonawanda Police Department and New York Central Mutual Insurance Company’s SIU resulted in the arrest of an upstate nurse accused of no-fault fraud. On 11/17/06, the suspect received treatment for a fractured wrist at the hospital where she was employed. A month later, she filed a no-fault application with New York Central Mutual stating that she had driven a car belonging to her boyfriend’s mother to the grocery store. The application further stated that when she returned to her boyfriend’s mother’s house, she fell out of the car, injuring her wrist. However, the investigation revealed that the injury she sustained on 11/17/06 was the result of a fight she had had with her boyfriend.
- CAR FIRE
Arrested on 7/26/07
Charged with arson in the 3rd degree, insurance fraud in the 3rd degree and endangering the welfare of a child
On 6/18/07, this suspect reported to the NYPD that his 2004 Chrysler Pacifica had been stolen. However, an investigation indicated that on 6/20/07 he used a flammable liquid to set the car on fire. While in the act, he suffered burns to his hands, arms, right leg, chest and face for which he was subsequently treated at Westchester Medical Center. At the time he set the fire, his 13-year-old son was present and waiting in a nearby vehicle. The Frauds Bureau and the State Police conducted the investigation that led to his arrest.
- ALLEGED THEFT
Arrested on 7/18/07
Charged with insurance fraud in the 3rd degree, attempted grand larceny in the 3rd degree, offering a false instrument for filing in the 1st degree and submitting a false written statement
A Bronx woman reported to the NYPD at 8:45 pm on 4/27/07 that her 2003 Honda Civic had been stolen. She stated that she had last seen the car at 10:00 am that same day. However, a review of FDNY documents by investigators from the Frauds Bureau and the NYPD’s Auto Larceny Unit disclosed that the FDNY extinguished a fire in her car on 4/23/07, nearly four full days before the alleged theft.
- A COUPLE OF EX’S AND A GIRLFRIEND
Arrested on 7/17/07
Chargedwith insurance fraud in the 3rd degree
On 1/3/07, a woman and her ex-husband reported to the Eden Police Department that her 1997 Dodge Ram pick-up truck had been stolen from the ex-husband’s driveway and she filed a claim with GEICO Insurance Company for the loss. However, an investigation conducted jointly by the Frauds Bureau, the Eden Police Department and GEICO’s SIU uncovered evidence that the ex-husband and his girlfriend had driven the truck to a deserted country road where they had arranged to have it “stolen” by a person presently unknown. The ex-husband stated that audio equipment was in the truck at the time of the theft. But investigators recovered the audio equipment from a man who said he had purchased it from the ex-husband. Investigators also learned that these actions took place with the full knowledge and consent of the ex-wife so that she could collect an insurance payout.
- ALTERED CONTRACT
Arrested on 7/17/07
Chargedwith insurance fraud in the 3rd degree and grand larceny in the 3rd degree
A self-employed contractor reported that a grapple was stolen from an excavator that he owned. He subsequently submitted a claim that included a sales contract and agreement purporting that he paid $17,000 for the grapple. During an investigation by the Frauds Bureau, the State Police and the Rochester Police Department evidence was uncovered that indicated the grapple, worth about $7,000, had been included in the cost of the excavator, and the sales contract was fraudulent. When interviewed, the suspect told investigators that he had altered the contract to reflect the value of the grapple at the time of the theft. The grapple was never recovered.
- COLLECTING WHILE WORKING
Arrested on 7/17/06
Chargedwith grand larceny in the 4th degree, offering a false instrument for filing in the 1st degree and committing a fraudulent practice under Section 114.00 of the Workers’ Compensation Law
The suspect in this case sustained a work-related injury and filed for workers’ compensation benefits. During the period in which she was collecting benefits, she submitted documents to the State Insurance Fund indicating she was not working. However, an investigation by the Frauds Bureau and the State Fund revealed that she was in fact employed.
- NOT EVEN CLOSE
Arrested on 7/16/07
Chargedwith insurance fraud in the 3rd and 4th degrees
A Schenectady County resident reported that he injured his knee when he was involved in an auto accident. He filed a claim with Allstate Insurance Company and received $1,500 in medical benefits. He subsequently initiated a lawsuit against MetLife, the insurer of the other driver involved in the accident, in an attempt to collect a $50,000 settlement. Evidence uncovered during the investigation indicated that the defendant was not driving the car, nor was he in the car, when the accident occurred. In fact, another family member was the actual driver. The Frauds Bureau assisted the State Police in the investigation that led to his arrest.
- DOUBLE DIPPING
Arrested on 7/13/07
Chargedwith grand larceny in the 3rd degree and insurance fraud in the 3rd degree
An investigation by the Frauds Bureau led to the arrest of a Troy woman. The sequence of events in this case is as follows: the suspect was pregnant and stayed at home to care for her children. She applied for a child-care subsidy which the Rensselaer County Department of Social Services denied on 5/2/06 based on a policy that states if you are not working and are at home caring for your children, no child-care subsidy is provided. Her new child was born on 6/24/06. On 7/1/06, she was involved in an auto accident and on 8/1/06, she applied for no-fault benefits. She said that she was unable to care for her children because of the injuries sustained in the accident. She further stated that since the accident occurred, she had been paying a babysitter for child-care services. She requested reimbursement for these services and State Farm Insurance Company paid out more than $3,000 for the period 7/23/06 through 2/8/07. She then reapplied to the Department of Social Services and began collecting a child-care subsidy at the same time she was receiving benefits from State Farm. The charges against this suspect include grand larceny in the 3rd degree and insurance fraud in the 3rd degree, both class D felonies. If convicted, she faces up to seven years for each charge.
- FRAUDULENT CERTIFICATES
Arrested on 7/12/07
Chargedwith eight counts each of forgery in the 2nd degree, grand larceny in the 3rd degree and insurance fraud in the 3rd degree
The Frauds Bureau initiated an investigation after receiving a report of suspected fraud from the brother-in-law of the defendant in this case, a licensed insurance broker. Evidence uncovered during the investigation indicated that the defendant had issued several fraudulent Certificates of Commercial General Liability Insurance to a number of companies for which he either overcharged the policyholders or did not obtain the coverage.
- WHAT A PAIR
Arrested on 7/11/07
Chargedwith insurance fraud in the 3rd degree and attempted grand larceny in the 3rd degree
On 3/16/07, this suspect reported to the Niagara County Sheriff’s Department that her car had been stolen while she was at a local club in Lewiston, NY, and she filed a $12,486 claim with GEICO Insurance Company for the loss. However, an investigation into the matter revealed that her boyfriend had been driving the car at the time of the reported theft. The boyfriend was driving with a suspended license and was charged with leaving the scene of an accident. Both were arrested and charged with insurance fraud and attempted grand larceny. The Frauds Bureau, the Lewiston Police Department, the Niagara County DA’s Office and GEICO’s SIU pooled resources in this investigation.
- IDENTITY THEFT
Arrested on 7/5/07
Chargedwith identity theft, forgery, grand larceny and falsifying business records
The defendant, a licensed broker, stole the identities of 13 former policyholders in order to secure a $60,000 loan purportedly for policies in their names. However, he did not forward the money to any insurance company and no coverage was ever placed. The efforts of the Frauds Bureau and the NYPD’s Identity Theft Task Force led to his arrest.
- ARSON DAMAGE
Arrested on 6/20/07
Chargedwith grand larceny in the 3rd and 4th degrees, insurance fraud in the 3rd and 4th degrees and falsifying business records in the 1st degree
The Frauds Bureau and the NYPD’s Auto Crime Unit conducted an investigation that led to the arrest of this suspect on charges related to a fire that occurred at 8:45 pm on 12/27/06 in which his car sustained major interior and exterior damage. However, investigators discovered that the suspect had reported to the NYPD and to GEICO Insurance Company that he had last seen his car on 12/30-31/06 where he had left it parked. He reported it stolen on 1/2/07.
- FRAUDULENT CLAIM
Arrested on 6/12/07
Chargedwith insurance fraud in the 3rd degree, attempted grand larceny in the 3rd and 4th degrees and falsifying business records in the 1st degree
The defendant in this case reported to the Suffolk County Police Department that her 2004 Nissan Murano had been stolen from a local street where she had left it parked at 8:30 pm on 3/25/07. On 4/5/07, she filed a claim with Drivers Insurance Company for the car’s market value of $24,000. However, records indicated that the FDNY had responded to the scene of a fire at 9:53 pm on 3/24/07 at which the suspect’s car was found burning. The arrest came as a result of the efforts of the Frauds Bureau and the NYPD’s Auto Crime Unit.
- WORKERS’ COMP FRAUD
Arrested on 5/23/07
Chargedwith falsifying business records in the 1st degree and violation of Section 114 of the Workers’ Compensation Law
A Newburgh, NY, resident sustained an injury on the job and filed for workers’ compensation benefits. During the period in which she was collecting benefits, she submitted several statements to AIG Insurance Company claiming that she had not returned to work since her injury. However, an investigation conducted by the Frauds Bureau and the Workers’ Compensation Fraud Inspector General’s Office revealed that she was operating a catering business out of her residence.