Arrests for July 2008
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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- SENTENCED TO REHAB
A Schoharie County couple, David and Ann Clark, was sentenced to a drug rehabilitation program on 7/23/08 for filing a fraudulent $20,000 insurance claim for a car they reported stolen in January 2008. They claimed that someone had broken into their home, taken their car keys and made off with the car. However, the police had actually discovered the car the day before the theft report was submitted. The couple had earlier pleaded guilty to felony insurance fraud for attempting to cash in on the bogus claim. Responding to a 911 call, police found the car unattended in a field where it had crashed into a tree. Police also found a six-pack of beer placed in the snow next to the car and footprints leading to the couple’s home. But police said there was no sign of forced entry into the home. Mr. Clark subsequently admitted he drove the car into the tree and fled the scene. If the couple violates the rehabilitation program, the judge said he would impose a maximum seven-year prison sentence on Mr. Clark and a one-year prison sentence against his wife. The Schoharie County District Attorney commended the Insurance Department for its Special Prosecutor’s program, which assisted local authorities in investigating the case. Under the program, the Department provides assistance to resource-strained upstate counties in an effort to combat insurance fraud.
- GUILTY PLEA
An Albany woman pleaded guilty on 7/21/08 to insurance fraud and falsifying business records in an attempt to collect a $38,000 payment under her renter’s insurance policy. She was arrested on 10/4/07 following an investigation by the Frauds Bureau and the Cobleskill Police Department into an April 2007 fire at the home in which she had previously resided. The Schoharie County Arson Task Force discovered that the defendant had moved many of her personal belongings out of the two-story frame house the day before the fire. In addition, investigators found that she had falsified an earlier claim for damages resulting from the collapse of a garage on the property. The Task Force is still investigating the cause of the fire.
- DATES ALTERED
Arrested on 7/30/08
Charged with forgery in the 3rd degree
In June 2007, the defendant in this case allegedly forged a Certificate of Insurance for her husband’s business. She was accused of altering the dates to falsely indicate that the business had the required commercial general liability insurance when in fact no such coverage existed. In the course of the investigation conducted by the Frauds Bureau, the defendant confessed that she forged the Certificate in order to hide from her husband the fact that they were having financial difficulties.
- NOT ENTITLED
Arrested on 7/29/08
Charged with falsifying business records in the 1st degree and committing a fraudulent practice under Section 114-1 of the Workers’ Compensation Law
Following a work-related injury, a construction worker with the New York State Thruway Authority began collecting workers’ compensation benefits. During the benefit period, he submitted documents to the State Insurance Fund stating that he was not working. However, an investigation by the Frauds Bureau revealed that he was employed but continued to collect $2,700 in benefits to which he was not entitled.
- DECEASED
Arrested on 7/29/08
Charged with grand larceny in the 4th degree
On 1/17/08, this suspect submitted to the State Insurance Fund a form stating that she was her deceased husband. As a result, she continued to receive workers’ compensation benefits paid by the Fund in her husband’s name from January to July 2008. During an investigation by the Frauds Bureau and the Fund, she voluntarily admitted to investigators that she collected the benefits because she needed the money.
- CLAIMS REP ARRESTED
Arrested on 7/17/08
Charged with grand larceny in the 2nd degree
An investigation by the Frauds Bureau and Nationwide Insurance Company resulted in the arrest of a former claims representative for the insurer. Investigators found that during the period from 2000 to 2006, he submitted numerous fraudulent requests for claim settlement payments using fictitious names which he inserted into legitimate claim histories. Checks totaling $296,000 were made out to these fictitious names which closely resembled his own. He cashed the checks and deposited the money into his personal account.
- STAGED ACCIDENT
Arrested on 7/16/08
Charged with insurance fraud in the 4th degree and two counts of conspiracy in the 5th degree
Three Syracuse residents were accused of staging a two-car accident in an unsuccessful attempt to collect a $4,632 insurance payout. They allegedly caused the accident purposefully using cars they were driving on 12/26/06. One of the suspects then filed a claim with Esurance Online Auto Insurance for the damage to his car. Investigators allege that the three planned to share the insurance proceeds. The Frauds Bureau and the Syracuse Police Department pooled resources in the investigation that led to the arrests.
- WORKERS’ COMP FRAUD
Arrested on 7/14/08
Charged with falsifying business records in the 1st degree and committing a fraudulent practice under Section 114-1 of the Workers’ Compensation Law
The defendant in this case was arraigned before a Cambridge Village Justice and accused of collecting $2,288 in workers’ compensation benefits to which he was not entitled. An investigation by the Frauds Bureau and the State Insurance Fund revealed that he was employed while collecting benefits, although he had submitted documents to the Fund stating that he was not working.
- NO COVERAGE
Arrested on 7/10/08
Charged with falsifying business records in the 1st degree, criminal possession of a forged instrument in the 2nd degree and insurance fraud in the 3rd degree
An investigation by the Frauds Bureau turned up the following information. At 6:30 a.m. on 3/19/08, this suspect was involved in an auto accident. However, his car was uninsured at the time. At 4:20 p.m. the same day, he contacted Progressive Insurance Company via e-mail and applied for insurance coverage. The company issued a policy which took effect at 6:59 p.m. that evening. On 3/20/08 at 1:55 p.m., he called Progressive to report that he had been in an accident at about 8:00 p.m. on 3/19/08. The insurer requested a copy of the Police Accident Report. On 4/4/08, the suspect submitted a copy of the report which stated that the accident had occurred on 3/19/08 at 6:30 p.m. On 4/15/08, the suspect gave a written statement to an investigator from Progressive’s SIU stating that the accident had happened at about 8:00 p.m. on 3/19/08 and on 4/16, he produced another Police Accident Report which stated that the accident occurred 10:30 p.m. Both Reports were fraudulent. Progressive obtained a copy of the original Accident Report from the Syracuse Police Department which indicated that the accident had occurred on 3/19 at 6:30 p.m., before the insurance coverage took effect.
- NOT DISABLED
Arrested on 7/9/08
Charged with insurance fraud in the 2nd degree and grand larceny in the 2nd degree
The defendant in this case submitted a claim for long-term disability benefits that included a completed questionnaire containing materially false information as to his disability status. As a result, from 8/12/03 to 6/28/07, he collected $54,505 in benefits to which he was not entitled. An investigation by the Frauds Bureau, the Niagara County DA’s Office and Hartford Insurance Company’s SIU uncovered evidence that he was gainfully employed while fraudulently collecting benefits.
- STOLEN ID
Arrested on 7/2/08
Charged with insurance fraud and identity theft
An investigation by the Frauds Bureau and the NYPD's Fraudulent Accident Investigation Squad led to the arrest of the defendant in this case. She was accused of using another person’s driver’s license and social security card, without permission, to obtain no-fault medical benefits.
- NO COVERAGE IN PLACE
Arrested on 7/1/08
Charged with violation of Section 114-1 of the Workers’ Compensation Law
An electrician from Long Island allegedly submitted to the State Insurance Fund a Certificate of Insurance on which he had altered the period of coverage to indicate that he had the required workers’ compensation insurance when, in fact, no such coverage was in effect.
PRIOR SUPPLEMENTS
June 2008
- STAGED ACCIDENT TWO
Arrested on 6/11/08
Charged with insurance fraud
This suspect was involved in a staged auto accident and subsequently sought and received more than $1,000 in no-fault medical benefits to which he was not entitled. The Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad pooled resources in this investigation.
May 2008
- TWO CAUSED ACCIDENTS
Arrested on 5/28/08
Charged with grand larceny in the 3rd degree, insurance fraud in the 3rd degree and conspiracy in the 5th degree
A Brooklyn laborer was charged with conspiring with others to intentionally cause two auto accidents. The first, which occurred on 1/28/04, caused Statewide Insurance Company to be fraudulently billed $23,000 in no-fault medical benefits and Liberty Mutual Insurance Company to be fraudulently billed in the amount of $35,000 in no-fault benefits. Following the second accident, which took place on 10/13/07, GEICO Insurance Company was fraudulently billed $4,000 in no-fault benefits. The Frauds Bureau and the NYPD conducted the investigation that led to his arrest.
April 2008
- CONSPIRACY
Arrested on 4/24/08
Charged with grand larceny in the 3rd degree, insurance fraud in the 3rd degree, conspiracy in the 5th degree and offering a false instrument for filing in the 5th degree
A joint investigation by the Frauds Bureau and the NYPD resulted in the arrest of a Brooklyn resident who was charged with conspiring with others to cause an auto accident with the intent of defrauding Liberty Mutual Insurance Company of $12,000 and GEICO Insurance Company of $2,000 for treatment of alleged injuries.
