Arrests for December 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
On 12/22/08, Anthony Tallarida was arrested and convicted of attempting to commit a fraudulent practice under Section 114.1 of the Workers’ Compensation Law. He was sentenced to a one-year conditional discharge and ordered to pay $3,318 in restitution. An investigation by the Frauds Bureau and the State Insurance Fund’s Division of Confidential Investigations uncovered evidence that while self-employed collecting and selling scrap metal, he was collecting workers’ compensation benefits. In addition, he submitted statements to the Fund stating that he had not worked since his job-related injury.
Albany resident Kim M. Laporte was sentenced to six months in jail and five years’ probation in Schoharie County Court on 12/3/08 after pleading guilty in July 2008 to felony 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 Laporte had moved many of her personal belongings out of the two-story 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 cause of the fire is still under investigation by the Arson Task Force.
Five insurance adjusters and four contractors were arrested on 12/2/08 for their participation in a kickback scheme involving inflated insurance claims on properties in Manhattan, Brooklyn and Staten Island. Four of the adjusters admitted accepting cash payments, as well as gifts and other gratuities, from the contractors in return for approving inflated repair estimates submitted by the contractors. Investigators said the contractors inflated the cost of repairs, kept a portion of the proceeds and gave part to the adjusters. In some cases, adjusters accepted such gifts as golf outings, golf equipment or dinners. The adjusters would then approve the inflated estimates as reasonable and pass them for payment to Chubb & Son, a division of Federal Insurance Company. Three of the adjusters who were employed by Chubb pleaded guilty to felony criminal bribe receiving and insurance fraud and were each sentenced to five years’ probation, in addition to the following forfeitures: Stephen Curtis, $70,000; James Cassino, $60,000; and John Occhiogrosso, $13,000. A fourth adjuster, Joseph Fonte, is a public adjuster with no affiliation to Chubb. He was given a one-year conditional discharge and ordered to make a $5,000 forfeiture after pleading guilty to two counts of commercial bribery. The fifth adjuster, John Brady, also employed by Chubb, pleaded guilty to commercial bribe receiving and is scheduled for sentencing on 1/13/09. The contractors sentenced and the forfeitures they were ordered to make are Arie Malina, $75,000 and five years’ probation for pleading guilty to insurance fraud and commercial bribery; Fabio Scala, $25,000 for pleading guilty to insurance fraud and commercial bribery; and Sergio Almada, condition discharge for pleading guilty to falsifying business records. The fourth contractor, Joseph Trovato, pleaded guilty to insurance fraud and commercial bribery. His sentencing was adjourned until 2/3/09. The four adjusters hired by Chubb had been employed previously by another insurer. Stephen Curtis resigned when the investigation began. John Occhiogrosso, James Cassino and John Brady were fired. The kickbacks – which are believed to have totaled an estimated $1 million – involved claims on about ten properties. In addition to the court-ordered forfeitures, contractors have already returned $600,000 to Chubb. The nine men were arrested after Chubb noticed irregularities in claims involving the adjusters and contractors. At the same time, the insurer had been contacted by another contractor who was not implicated in the schemes. That contractor complained that he had been approached by Curtis who wanted “ten points,” or $3,750, as a kickback for a $37,500 repair project he was working on at a Park Avenue condominium. Chubb asked the Frauds Bureau and the Manhattan DA’s Office to look into the case after it had conducted its own investigation that included re-inspecting the properties tied to the claims.
- STILL TRUCKING
Arrested on 12/22/08
Charged with insurance fraud in the 3rd degree, perjury in the 1st degree, offering a false instrument for filing in the 1st degree and violation of Section 114.1 of the Workers’ Compensation Law
The defendant in this case claimed to have incurred a knee injury in 2005 while employed as an over-the-road trucker and began to collect lost-wage benefits from the State Insurance Fund. During the benefit period, he submitted documents and presented testimony before the Fund stating that he had not worked in any capacity since the date of his injury. Moreover, he provided false sworn testimony at a Workers’ Compensation Board hearing about his working status. However, a joint investigation by the Frauds Bureau and the Fund revealed that the defendant continued to work as a truck driver while collecting $33,326 to which he was not entitled.
- OFF-THE-BOOKS
Arrested on 12/18/08
Charged with grand larceny in the 3rd degree, falsifying business records in the 1st degree, offering a false instrument for filing in the 1st degree and violation of Section 114 of the Workers’ Compensation Law
An investigation by the Frauds Bureau found evidence that this suspect was working “off the books” at a textile company while collecting workers’ compensation benefits. During an interview, he admitted to a Bureau investigator that although he was working, he submitted statements in which he denied being employed. As a result of the fraud, he collected $14,088 in benefits to which he was not entitled. Since the investigation, the suspect has become a legitimate employee of the textile company.
- COLLECTING WHILE DELIVERING
Arrested on 12/17/08
Charged with grand larceny in the 3rd degree, insurance fraud in the 3rd degree and violation of Section 114.1 of the Workers’ Compensation Law
The defendant in this case provided several written statements and sworn testimony to the Workers’ Compensation Board that he had not worked since he sustained a neck injury while employed as a cook. However, during an investigation by the Frauds Bureau he was observed working as a delivery person. As a result of the fraud, he collected $3,450 in benefits to which he was not entitled.
- MANAGING THE BUSINESS
Arrested on 12/17/08
Charged with insurance fraud in the 5th degree, offering a false instrument for filing in the 1st degree and violation of Section 114.1 of the Workers’ Compensation Law
This suspect began receiving workers’ compensation benefits after claiming he suffered a back and arm injury in 1990 while working as an aide at the New York State Rome Developmental Center. He later submitted documentation stating that he had not been employed since his injury. However, a joint investigation by the Frauds Bureau, the State Insurance Fund and the Workers’ Compensation Board’s Office of the Inspector General found that he was working as the manager of a billiard room and restaurant business owned by his wife and daughter. As a result, he fraudulently collected $17,940 in workers’ compensation benefits.
- FORGED CERTIFICATE
Arrested on 12/16/08
Charged with possession of a forged instrument
A joint investigation by the Frauds Bureau, the Town of Tonawanda Police Department and the State Insurance Fund resulted in the arrest of an upstate building contractor. On 6/24/08, the suspect submitted to the Town of Tonawanda Building Department a Certificate of Insurance for workers’ compensation insurance for the period 7/16/07 to 7/16/08. However, evidence showed that his policy had been cancelled on 2/19/07 for nonpayment of premiums and the Certificate was fraudulent.
- DELIBERATE FIRE SET
Arrested on 12/16 and 12/22/08
Charged with offering a false instrument for filing in the 2nd degree, insurance fraud in the 3rd degree, attempted grand larceny in the 3rd and 4th degrees, falsifying business records and falsely reporting an incident in the 1st and 3rd degrees
On 10/30/08, defendant #1 in this case reported to the NYPD and GEICO Insurance Company that his 2007 Dodge Charger had been stolen in The Bronx. However, an investigation by the Frauds Bureau and the FDNY’s Bureau of Fire Investigations revealed that he had contracted with a co-conspirator, defendant #2, to dispose of the car. Defendant #1 was arrested on 12/16/08. Defendant #2 was arrested on 12/22/08 in Queens where the car was recovered with major fire damage.
- SUB-CONTRACTING
Arrested on 12/11/08
Charged with insurance fraud in the 3rd degree and violation of the Workers’ Compensation Law
This suspect began collecting benefits after suffering a job-related arm and shoulder injury in January 2007. He claimed he could not work because of the injury, but during an investigation by the Frauds Bureau and the State Insurance Fund, he was discovered working as a painting sub-contractor throughout 2007 and 2008. During this time, he fraudulently collected $9,200 in workers’ compensation benefits.
- LOST CONTROL
Arrested on 12/11/08
Charged with insurance fraud in the 4th degree
An Oneida County man was uninsured on 5/14/08 when he lost control of his 2007 Suzuki motorcycle and ran off a road. He was not badly hurt and used his cell phone to contact State Farm Insurance from the accident scene to obtain insurance for the motorcycle. Less than an hour later, he called the insurer again to report that he had been involved in an accident and file a damage claim. The claim was denied. An investigation by the Frauds Bureau led to his arrest.
- APPARENT ARSON
Arrested on 12/10/08
Charged with insurance fraud in the 3rd degree, conspiracy in the 4th degree and arson in the 3rd degree
The Town of Ulster Police Department requested the assistance of the Frauds Bureau with an apparent arson of a stolen 2007 Sierra pickup truck. The vehicle had been found abandoned and burned, with the license plates removed and the owner had filed a claim with State Farm Insurance Company for the loss. During the investigation, he was interviewed and confessed that he had paid someone to take the truck and set it on fire. He was arrested on 10/2/08. An additional investigation identified two other suspects who were questioned and admitted their part in the arson. These two suspects were arrested on 12/10/08.
- BARTENDER COLLECTS
Arrested on 12/10/08
Charged with violation of Section 114.1 of the Workers’ Compensation Law
An investigation by the Frauds Bureau, the Orange County Sheriff’s Department and the Workers’ Compensation Board’s Office of the Inspector General led to the arrest of an upstate woman. Evidence revealed that she was collecting workers’ compensation benefits from Clarendon National Insurance Company while employed as a bartender/waitress.
- NONPAYMENT
Arrested on 12/10/08
Charged with criminal possession of a forged instrument
The Town of Harrison hired an asbestos-removal company co-owned by the defendant in this case to remove the substance from its New York Legion Center Hall. As such she was required to provide documentation to general contractors stating that appropriate insurance was in place. However, an investigation by the Frauds Bureau uncovered evidence that the Certificate of Insurance she submitted was forged. The defendant had a workers’ compensation insurance policy with the State Insurance Fund that was cancelled in 2003 for nonpayment of premiums. As a result, she owed the Fund $38,642.
- FALSE PROOF
Arrested on 12/9/08
Charged with possession of a forged instrument in the 3rd degree
The president of a home improvement company submitted a Certificate of Insurance to a customer indicating that his company had workers’ compensation insurance as required by New York State Law. However, a Frauds Bureau investigator contacted the insurer named on the Certificate, Allstate Insurance Company, and was informed that no such coverage was in effect for the suspect’s company.
- DISABLED? NOT TOTALLY
Arrested on 12/9/08
Charged with insurance fraud in the 4th degree and forgery in the 2nd degree
An FDNY emergency medical technician was injured while working on 8/7/07. He had an existing disability income policy with Transamerica which pays benefits when the insured is totally disabled. He filed a claim with the insurer and included documents indicating that he was totally disabled as a result of the 8/7/07 injury. However, an investigation by the Frauds Bureau revealed that the examining physician in the case reported that the suspect was able to perform light duty, making him ineligible for the disability income benefits. Before the fraud was discovered, he collected $2,000 in benefits to which he was not entitled.
- UNSETTLED
Arrested on 12/9/08
Charged with grand larceny in the 3rd degree, insurance fraud in the 3rd degree, attempted grand larceny in the 2nd degree and violation of Section 114.1 of the Workers’ Compensation Law
On 7/22/00, a Brooklyn man claimed work-related injuries to his neck and back and began collecting workers’ compensation benefits. However, an investigation by the Frauds Bureau found evidence that from August 2006 to October 2007, he was driving a livery cab in Queens. During this time period, he collected $8,840 in benefits to which he was not entitled. Moreover, the investigation revealed that he attempted to unlawfully collect an additional $50,000 settlement from the State Insurance Fund.
- BAKED GOODS
Arrested on 12/9/08
Charged with violation of Section 114.1 of the Workers’ Compensation Law
Following an on-the-job injury in 2003, the defendant in this case began collecting workers’ compensation benefits. During the benefit period, she filed documents with AIG Insurance Company stating that she was unable to work in any capacity since the date of her injury. However, an investigation by the Frauds Bureau, the Orange County DA’s and Sheriff’s Offices and the Workers’ Compensation Board’s Office of the Inspector General turned up evidence that she had in fact returned to work in a bakery.
- IDENTITY THEFT
Arrested on 12/9/08
Charged with identity theft in the 1st degree
An investigation by the Frauds Bureau found that this suspect assumed the identity of another person about 20 years ago. Then in 1990, using the stolen identity, he purchased disability income insurance from UNUM Provident Insurance Company. In 1999, he filed a claim under his policy coverage and from March 1999 through April 2007, he collected $1,460 a month, a total of $141,620, in benefits checks issued to the person whose identity he had assumed. The investigation further revealed that this suspect had two felony convictions prior to 1980. However, on his application for the disability income benefits, he answered “no” when asked if he had ever been arrested or convicted of a crime. The policy would not have been issued if UNUM had been aware of his criminal record.
- FULL-TIME STUDENT
Arrested on 12/9/08
Charged with perjury in the 1st degree and violation of Section 114.1 of the Workers’ Compensation Law
A 27-year-old Cortland woman was arrested following an investigation by the Frauds Bureau, the Workers’ Compensation Board’s Office of the Inspector General and the State Insurance Fund. She was charged with making false statements to the Workers’ Compensation Board in order to receive benefits. She claimed that an April 2006 back injury she suffered while she was a health aide prevented her from working or attending school. However, investigators learned that she was attending school full- time.
- MISREPRESENTATION BIG-TIME
Arrested on 12/8/08
Charged with insurance fraud in the 2nd degree
On 6/25/07, an Arizona woman submitted an application for an Allstate Landlord Insurance Policy that contained material misrepresentations. For example, she listed the purchase price of a house – located in the Village of Monticello in Sullivan County, NY – at $200,000 when she had actually purchased it for $42,000. In addition, she stated that the house had not been vacant for 30 days or more when in fact it had been vacant for a year. The fraudulent application allowed her to obtain $135,000 in insurance coverage. The house was inspected on 7/13/07 but failed the inspection because of its poor condition and vacancy status. Three days later the house was destroyed by a fire, the cause of which is currently inconclusive. The policy remained in effect for 30 days after the failed inspection and the defendant filed a claim for the loss based on her fraudulent application. An investigation by the Frauds Bureau led to her arrest on 12/8/08 by Sullivan County detectives when she unexpectedly returned from Arizona. She was later indicted by a grand jury and is being held in the county jail on $75,000 bail.
- SHORT STAY
Arrested on 12/5/08
Charged with insurance fraud in the 4th degree and attempted grand larceny in the 4th degree
An investigation by the Frauds Bureau, the State Insurance Fund and the Workers’ Compensation Board’s Office of the Inspector General resulted in the arrest of a Niagara Falls man who was accused of submitting altered medical records in an unsuccessful attempt to collect $2,298 in workers’ compensation benefits. The altered documents falsely stated that he was hospitalized from 7/10/07 through 8/1/07, when he was actually hospitalized for only seven days. He was never paid the benefits.
- DIZZY
Arrested on 12/4/08
Charged with grand larceny in the 3rd degree, possession of a forged instrument in the 2nd degree, insurance fraud in the 3rd degree and falsifying business records.
This suspect claimed that she was unable to work due to dizziness, allergies, a sore throat and heart palpitations. She filed a claim under her disability insurance policy with State Farm Insurance Company. She submitted numerous statements allegedly from her doctors confirming her disability status. However, an investigation by the Frauds Bureau revealed that her doctors had not prepared the disability forms that she had submitted to her insurer. They were in fact fraudulent. As a result of the fraud, from 9/9/04 to 9/20/06, she collected $37,750 to which she was not entitled.
- NO COVERAGE
Arrested on 12/4/08
Charged with forgery in the 2nd degree, offering a false instrument for filing in the 1st degree and insurance fraud in the 5th degree
An investigation by the Frauds Bureau, the Orange County DA’s and Sheriff’s Offices and the Workers’ Compensation Board’s Office of the Inspector General resulted in the arrest of a contractor after he turned himself in. He was charged with submitting two forged Certificates of Insurance. The Certificates were meant as proof of insurance coverage required for a sub-contracted siding job his company was to perform when in fact no such coverage was in place.
- HEAVY LOAD
Arrested on 12/4/08
Charged with insurance fraud in the 3rd degree
In 1995, the owner/operator of a marble and ceramic business claimed that he sustained a work-related back injury. He was awarded workers’ compensation benefits of $325 a week after it was determined that he was permanently partially disabled. However, during an investigation by the Frauds Bureau, he was observed carrying building materials (including granite slabs) and installing a hot tub. While providing written statements to the State Insurance Fund that maintained he was not working, he fraudulently collected $22,230 in benefits.
- IN DENIAL
Arrested on 12/4/08
Charged with offering a false instrument for filing
On 10/21/07, this suspect reported to the State Insurance Fund that he was thrown from a horse at Finger Lakes Race Track where he worked as an exercise trainer for horses. He sustained back and neck injuries and collected workers’ compensation benefits until 4/23/08. During the benefit period, he submitted documents to the State Insurance Fund stating that he had not worked in any capacity since the date of his injury. Moreover, he testified under oath at a Workers’ Compensation Board hearing on 7/22/08 that he was not employed from 10/21/07 until 4/23/08 when he said he had resumed work. However, during an investigation by the Frauds Bureau, sworn depositions were obtained from various witnesses at the race track stating that the suspect was in fact working and collecting a pay check. When questioned on 12/4/08, he denied to investigators that he had worked during the benefit period. As a result of the fraud, he received $9,072 in lost-wage benefits to which he was not entitled. Additional charges are pending against this suspect.
- VIDEOTAPED
Arrested on 12/3/08
Charged with insurance fraud, grand larceny, offering a false instrument for filing and violation of the Workers’ Compensation Law
An Ulster County man started collecting workers’ compensation benefits from the State Insurance Fund after claiming he suffered an on-the-job back injury. However, investigators captured videotaped images showing him engaged in various physical activities without the cane he used when he appeared for medical exams or hearings held in connection with his workers’ compensation benefits. From May 2003 until September 2006, he fraudulently collected more than $77,800 in benefits. The Frauds Bureau, the Workers’ Compensation Board’s Office of the Inspector General and the State Fund pooled efforts in the investigation that led to the arrest.
- DELIVERY MAN
Arrested on 12/3/08
Charged with violation of Section 114.1 of the Workers’ Compensation Law
A Nassau County man was determined to be permanently partially disabled and was awarded workers’ compensation benefits of $400 a week following a work-related injury. However, a Frauds Bureau investigator observed him working, delivering caskets for a local business. While providing written documents stating that he was not working, he fraudulently collected $12,400 in benefits from the State Insurance Fund.
- HORSE TRANSPORTER
Arrested on 12/3/08
Charged with grand larceny in the 3rd degree, insurance fraud in the 3rd degree, perjury in the 1st degree, falsifying business records in the 1st degree, offering a false instrument for filing and violations of the Workers’ Compensation Law
The defendant in this case claimed an injury to his knee, elbow and hip while employed as an exercise jockey at Belmont Race Track. He was awarded workers’ compensation benefits totaling $150 a week. He testified at a Workers’ Compensation Board hearing that was not working in any capacity. However, an investigation by the Frauds Bureau found that he was employed transporting horses. From January 2003 to October 2006, he collected approximately $32,000 in benefits to which he was not entitled.
- FRAUDULENT BILLS
Arrested on 12/2/08
Charged with possession of a forged instrument in the 2nd degree, insurance fraud in the 3rd degree and attempted grand larceny in the 3rd degree
A Manhattan man was arrested for submitting fraudulent towing and repair bills totaling more than $3,500 for his 2002 BMW.
- FORGED INSPECTION REPORT
Arrested on 12/2/08
Charged with falsifying business records in the 2nd degree and insurance fraud in the 5th degree
This suspect was involved in an accident but did not have comprehensive coverage at the time. When she filed a claim for the damage to her car, the insurer asked for a copy of the photo and cargo inspection report. Such documents are required within ten days after applying for comprehensive coverage in order to demonstrate to the insurer that the car has no damage that could be claimed later. She informed the insurer that she had previously submitted a copy. The insurer had no record of her report and requested another copy. The insurer’s SIU suspected that the newly submitted report had been altered and contacted the body shop that purportedly performed the inspection. The body shop’s records produced an inspection report for the suspect’s car from the year before. A comparison of the two reports indicated that the name of the insurer and the inspection dates were changed. In addition, the shop’s control number was the same on both reports and so was the mileage. When confronted with the evidence, the suspect confessed that she altered the report in an attempt to prove that she had comprehensive coverage when the accident occurred.
