Arrests for January 2009
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 PLEAS
Mark Winkler of Dutchess County pleaded guilty to felony insurance fraud on 1/6/09 for his part in having his 2007 Sierra pickup truck destroyed by fire and fraudulently reporting it stolen. The Ulster Town Police Department responded to a report of a vehicle fire at 11:47 p.m. on 12/8/08 where they found the pickup truck engulfed in flames. Winkler reported to the Dutchess County Sheriff’s Office on 12/9 that the truck, which he valued at $30,000, had been stolen during the night. However, an investigation by the Ulster Town Police with the assistance of the Frauds Bureau revealed that Winkler had paid a co-conspirator, Anthony Latty, $1,000 to get rid of the truck so he could collect insurance money. Latty enlisted a third person, Anthony Waiters, to help with the fraud. Both men were charged with felony arson.
Three Ulster County residents pleaded guilty on 1/5/09 to charges that they set fire to a 2005 Chevy Trail Blazer and then filed a fraudulent claim for the loss. An investigation by the Frauds Bureau and the Town of Ulster Police Department found evidence that Rebecca Williams, the owner of the vehicle, paid Roy Nugent and Jeremy Cullen $500 each to stage the theft of her vehicle from the parking lot of a local mall where she had left it with the keys inside. Nugent and Cullen drove the car to an apple orchard and used gasoline to set the fire while Williams went to Atlantic City overnight to establish an alibi. All three pleaded guilty to felony insurance fraud. In addition, Nugent pleaded guilty to felony charges of attempted arson and possession of a controlled substance. Cullen pleaded guilty to attempted arson. Frauds Bureau Assistant Counsel William Andrews prosecuted the case for the Ulster County DA’s Office.
- PAYMENT AVOIDED
Arrested on 1/30/09
Charged with violation of the Workers’ Compensation Law
An investigation by the Frauds Bureau and the Workers’ Compensation Board’s Office of the Inspector General led to the arrest of the owner of a Yonkers, NY, bus service. Investigators found evidence indicating that the suspect in this case employed 25 workers from 2006-2008 but did not have workers’ compensation coverage. Section 52(1A) of the Workers’ Compensation Law makes it a felony to employ more than five workers without coverage. As a result of his fraudulent act, the defendant avoided paying an estimated $130,000 in workers’ compensation premiums.
- LEFT THE SCENE
Arrested on 1/30/09
Charged with insurance fraud in the 3rd degree and offering a false instrument for filing in the 2nd degree
The defendant in this case left the scene of a multiple-car accident in which his 2005 Toyota Camry was involved at 12:47 a.m. on 1/2/09. He subsequently reported that it had been stolen from a location in front of his home. However, an investigation by the Frauds Bureau and the NYPD’s Auto Crime Division found that the car had been recovered at the accident scene by the NYPD.
- STOLEN CHECKS
Arrested on 1/29/09
Charged with grand larceny in the 3rd degree
A Rochester man was accused of cashing more than $15,000 in workers’ compensation checks issued to his deceased mother. During an investigation by the Frauds Bureau, the State Insurance Fund and the Workers’ Compensation Board’s Office of the Inspector General, the defendant, who is unemployed, admitted to investigators that he had not advised the Insurance Fund that his mother had died in April 2007 and continued to receive and cash the checks until August 2008.
- CO-DEFENDANTS CAUGHT
Arrested on 1/28 and 1/21/09
Charged with insurance fraud in the 4th degree and attempted grand larceny in the 4th degree
An investigation by the Frauds Bureau and Progressive Insurance Company’s SIU resulted in the arrest of an upstate woman when she surrendered to the Depew Police Department on 1/28/09. The investigation revealed that on 7/17/08, the defendant’s car accidentally struck a parked car owned by a co-worker who is a co-defendant in this case. After learning that her auto insurance policy with Allstate Insurance Company had been cancelled, she purchased coverage from Progressive. She and the co-defendant than allegedly changed the date on the Police Accident Report to 7/24/08 and filed a claim for $1,640. Progressive denied the claim after contacting a witness that provided proof that the actual date of the accident was 7/17/08. The co-defendant surrendered on 1/21/09.
- FOUR FRAUDULENT REPORTS
Arrested on 1/27/09
Charged with grand larceny in the 3rd degree, offering a false instrument for filing in the 1st degree and violation of the Workers’ Compensation Law
Following a work-related injury in January 2006, the suspect in this case began collecting workers’ compensation benefits. During the period 1/1/06 to 12/18/08, he submitted four Work Activity Reports to the Fund stating that he was unable to work. However, an investigation by the Frauds Bureau and the Broome County Sheriff’s Department revealed that he was operating a small engine repair company. As a result, he collected nearly $21,372 in benefits to which he was not entitled.
- NOT ENTITLED
Arrested on 1/20/09
Charged with violation of the Workers’ Compensation Law
A Suffolk County man who claimed a job-related back injury was charged with fraudulently collecting $7,150 in workers’ compensation benefits. During the benefit period, he submitted signed statements to the Fund claiming he was unable to work. However, an investigation by the Frauds Bureau, the State Insurance Fund and the Workers’ Compensation Board’s Office of the Inspector General uncovered evidence that he was working as a porter and maintenance attendant while collecting benefits.
- ALL IN THE FAMILY
Arrested on 1/16/09
Charged with arson, insurance fraud in the 2nd and 3rd degrees, grand larceny in the 2nd and 3rd degrees, reckless endangerment and conspiracy
Three family members were arrested in connection with a January 2004 fire at an apartment building in Gloversville, NY. The indictment charged that the building owner and his daughter and her husband, who were tenants in the building, knowingly set fire to the property. They subsequently filed an insurance claim and were paid $210,000 for the loss. The fire was originally blamed on cooking oil that had been accidentally left heating on a stove. However, the case was reopened following a fatal fire in December 2007 at another property owned by the defendant. The property owner, who is in jail on a federal weapons possession charge, was named a “person of interest” in the 2007 arson fire which remains under investigation. The arrests were the result of a team effort by the Frauds Bureau, the Gloversville and Johnstown Police Departments, the Fulton County DA’s Office, the Gloversville Fire Department, the State Police and the New York State Office of Fire Prevention and Control.
- NO COVERAGE IN PLACE
Arrested on 1/16/09
Charged with criminal possession of a forged instrument in the 2nd degree
A Rochester man presented an allegedly fraudulent Certificate of Insurance to a contractor as proof that he had workers’ compensation insurance as required by New York State law. An investigation by the Frauds Bureau, the State Insurance Fund and the Monroe County Sheriff’s Office found evidence that the Certificate was forged and no such coverage was in place. The suspect subsequently confessed to the fraud.
- AFTER THE FACT
Arrested on 1/14/09
Charged with insurance fraud and falsifying business records
Following an investigation by the Frauds Bureau and the State Police, the defendant in this case was arrested when the investigation revealed that he bought auto insurance after being involved in an accident. He rented a 2004 Chevrolet Malibu on 9/1/08 and declined to purchase optional insurance coverage from the rental car company. On 9/19/08, he purchased insurance to cover the car from Progressive insurance Company. Three days later, he filed a claim, reporting that he struck a deer while driving from the insurance agency. However, witnesses told investigators they noticed damage to the defendant’s rental car when it was parked in front of his home prior to the time he purchased insurance. His $1,280 claim was not paid.
- WORKING THE PUB
Arrested on 1/13/09
Charged with grand larceny in the 3rd degree
A Putnam County pub owner was injured on the job in May 1995 and began collecting workers’ compensation benefits. On 9/10/08, he completed and submitted a questionnaire to the State Insurance Fund stating that he had not worked since the date of his accident. The Fund contracted investigators to conduct surveillance that revealed that the suspect was working at his pub. As a result of the fraud, he fraudulently received $11,160 in benefits. An investigation by the Frauds Bureau and the Fund led to his arrest.
- EMPTY CAR
Arrested on 1/13/09
Charged with insurance fraud and falsifying business records
The defendant in this case reported that he was in his car when it was one of two parked cars that were struck by a moving vehicle in an accident that occurred on 1/20/07. However, an investigation by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad located three witnesses who stated that the defendant was not in his car at the time of the accident. When faced with the evidence, the suspect admitted the falsehood.
- WORK CONTINUED
Arrested on 1/13/09
Charged with violation of Section 114(1) of the Workers’ Compensation Law
An investigation by the Frauds Bureau, the State Insurance Fund and the Workers’ Compensation Board’s Office of the Inspector General led to the arrest of an upstate cabinet maker who was accused of working while collecting workers’ compensation benefits. On four separate occasions between May and July 2008, the suspect submitted Work Activity forms to the Fund stating that he was not engaged in any work activity. However, investigators found evidence that he was working at a local kitchen supply business. At the same time, he collected $2,448 in benefits to which he was not entitled.
- FRAUDULENT CLAIM
Arrested on 1/8/09
Charged with insurance fraud in the 3rd degree and signing a false written statement.
A Steuben County woman was arrested following an investigation by the Frauds Bureau. She filed a homeowners claim stating that her home was burglarized and $75,000 worth of property was stolen. However, investigators uncovered evidence that the claim was fraudulent.
- THE EYES HAVE IT
Arrested on 1/8/09
Charged with violation of Section 114 of the Workers’ Compensation Law
On 8/13/08, a counselor for the New York State Office of Children and Family Services, suffered an on-the-job injury to his right eye and was subsequently awarded a temporary total disability by the State Insurance Fund. However, an investigation revealed that this suspect called his employer on 10/24/08 stating that the injury for which he was awarded the disability determination was in his left eye, not his right eye as previously reported. He insisted that the injury report be changed. Further investigation found evidence that an eye examination at a local vision center wrongfully diagnosed a possible carcinogen in his left eye, a condition totally nonwork-related. However, the suspect had no insurance coverage for what he believed could be a very expensive course of medical treatment and he took steps to have the information changed on his injury report. The Fund noticed the discrepancy between the two reports and asked for and received a signed and notarized affidavit from the suspect attesting that the injury was in his left eye. Interviews conducted with persons connected to the original injury and subsequent treatment confirmed suspicions that the changed report was fraudulent. When faced with the evidence gathered in the investigation, the suspect admitted that the claim was fraudulent.
- ANONYMOUS TIP
Arrested on 1/7/09
Charged with insurance fraud in the 3rd degree
The defendant in this case reported to GEICO Insurance Company that on 9/23/08, her 2001 Ford Escape was damaged as a result of a hit-and-run incident while it was parked and unoccupied outside her residence. She filed a claim in the amount of $3,784 for the loss. However, the Carthage Police Department received an anonymous call informing them that the defendant had struck a parked vehicle on a local street and fled the scene. During an interview, the defendant confessed that she had filed a false Police Accident Report and filed a fraudulent insurance claim. The Frauds Bureau and the Carthage Police pooled resources in this investigation.
- SURVEILLANCE DOES IT
Arrested on 1/2/09
Charged with grand larceny in the 3rd degree
Following a job-related injury in July 2005, an Orange County farm worker began collecting workers’ compensation benefits. During the benefit period, the suspect submitted a written document to the State Insurance Fund stating that he had not worked since the date of his accident. However, surveillance conducted by the Fund revealed the he was indeed employed at a farm in a nearby town. As a result, he fraudulently collected $41,480 in benefits.
PRIOR SUPPLEMENT
December 2008
- ARSON
Arrested on 12/30/08
Charged with arson in the 3rd degree, insurance fraud in the 3rd degree, grand larceny in the 3rd degree, attempted grand larceny in the 3rd degree and falsifying business records in the 1st degree
An investigation conducted jointly by the Frauds Bureau, the State Police, the New York State Office of Fire Prevention and Control and the Steuben County Fire Investigation Team resulted in the arrest of a Corning man in connection with a fire that occurred on 6/6/06 at his former residence in Campbell, NY. He allegedly filed a series of fraudulent insurance claims related to the 6/6/06 fire, as well as claims made in connection with a 6/16/07 fire that destroyed the residence in Campbell. The 6/16/07 fire is still under investigation.
- GIRLFRIEND GONE
Arrested on 12/7/08
Charged with insurance fraud in the 3rd degree and filing a false written statement
A Staten Island man reported to the NYPD and GEICO Insurance Company that he had left his vehicle running and unattended, with the keys in the ignition, while he briefly returned to his residence. He reported that when he returned, the car was missing. However, during an investigation by the Frauds Bureau and the NYPD, the suspect admitted that he had given his vehicle to his girlfriend and she never returned it. He reported the false information in an effort to have his insurance claim paid.
