Arrests for August 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
The defendant in this case submitted a claim to USAA Insurance Company for damages to his laptop computer that he reported had occurred during a thunderstorm. In support of the claim, he provided the insurer with a $2,252 estimate for repair to the computer. However, an investigation by the Frauds Bureau revealed that he created the document himself and the computer store named on the estimate did not exist. He was arrested on 8/31/09 and charged with insurance fraud in the 5th degree. When faced with the evidence, he admitted his guilt.
An investigation by the Frauds Bureau and the FBI resulted in the arrest of a Rochester woman on 8/21/09 for defrauding MetLife Insurance Company of $30,579. The suspect admitted that between 9/04 and 4/06, she created false medical records and submitted them to MetLife in order to continue collecting long-term disability benefits related to an injury she sustained while working in Florida. However, investigators discovered that she had returned to work in Western New York, disqualifying her from receiving further benefits. She pleaded guilty to one count of wire fraud.
- GRANDMOTHER'S CHECKS CASHED
Arrested on 8/27/09
Charged with grand larceny in the 3rd degree and criminal possession of a forged instrument in the 2nd degree
An investigation by the Frauds Bureau and the Hartford Insurance Company's SIU led to the arrest of a Buffalo man who, investigators charged, cashed disability checks issued by Hartford to his grandmother. His grandmother had died on 10/24/07 and between that date and 9/17/08, he cashed 24 checks, collecting $5,760 to which he was not entitled. He cashed the checks at a local bank where he had taken his grandmother when she was alive, advising the bank that she had become to sick to come in person.
- MISSING EIGHT
Arrested on 8/27/09
Charged with violation of Section 114.1 of the Workers' Compensation Law
The defendant in this case, doing business as a contracting company, was charged with failing to disclose to the State Insurance Fund the correct number of his employees, reporting eight fewer workers than were actually on his payroll. As a result of the fraud, the monetary loss to the Fund was $104,177 in premiums.
- MISREPRESENTATION
Arrested on 8/27/09
Charged with violation of Section 114.1 of the Workers' Compensation Law
The president and sole officer of a contracting company submitted documents to the State Insurance Fund stating that his business was a small consulting firm. However, an investigation by the Frauds Bureau and the Fund found evidence that his business involved carpentry and dry-wall work. As a result of the misrepresentation, from 8/4/95 until his policy was cancelled on 11/25/06, he defrauded the Fund of $656,929 in lost premium payments.
- TWO JOBS
Arrested on 8/26/09
Charged with violation of Section 114.1 of the Workers' Compensation Law
Following a work-related injury to her back and neck, the defendant in this case began collecting workers' compensation benefits. However, an investigation by the Frauds Bureau and the State Insurance Fund uncovered evidence that she was working as a dental assistant at two dental offices on Long Island. As a result, from 9/13/05 until the time of her arrest, she fraudulently collected $39,360.
- FORGED PRESCRIPTIONS
Arrested on 8/26/09
Charged with criminal possession of a forged instrument in the 2nd degree
The Village of Fishkill Police Department was conducting an investigation of forged prescriptions in the name of a certain upstate woman. Since the prescriptions were written by Poughkeepsie-based doctors, the PD contacted the State Police who then got in touch with the State Insurance Fund which was paying for the suspicious prescriptions. The Fund submitted a report of suspected fraud to the Frauds Bureau and an investigation was initiated. While the investigation was under way, a pharmacy advised the State Police that a woman was waiting to pick up a prescription written in the name of the upstate woman being investigated by the Fishkill Police. The woman who picked up the prescription, the defendant in this case, was an employee at a health care facility in upstate New York who shared a residence with the woman whose name was on the prescription. She was arrested after investigators learned that she had forged the prescription in the name of her housemate.
- VEHICLE FIRE
Arrested on 8/24/09
Charged with attempted grand larceny in the 3rd degree, insurance fraud in the 3rd degree, falsely reporting an incident in the 3rd degree and false written statement
The defendant in this case reported to the NYPD that her 2005 Nissan Altima was stolen and she filed a $13,380 claim with GEICO Insurance Company for the loss. The defendant claimed that all keys to the vehicle were in her possession and were never duplicated. The vehicle was factory-equipped with a transponder system that prevented the vehicle from being operated unless one of the programmed keys was used. However, FDNY Fire Marshals responding to a report of a vehicle fire found the same 2005 Nissan Altima on fire with no broken windows or glass in the surrounding area. A forensic examiner concluded that the vehicle was not forcibly entered, the keys were not duplicated and there was no visible evidence that the vehicle's door locks or ignition systems were defeated. An investigation conducted jointly by the Frauds Bureau and the FDNY Fire Marshals resulted in the arrest of the defendant.
- 55 FRAUDULENT RECEIPTS
Arrested on 8/21/09
Charged with insurance fraud in the 4th degree and petit larceny
Following an auto accident on 7/6/08, a Buffalo woman filed a claim with Erie Insurance Company for the damage. The insurer advised her that while her car was being repaired, she was covered for transportation by taxi. She subsequently submitted 56 receipts totaling $2,000.70 from three taxi companies. Erie paid the defendant $701.31 on a number of the receipts when it became suspicious and submitted the receipts to the taxi companies for review. The review showed that all but one of the receipts was fraudulent. The defendant surrendered to the Buffalo Police Department on a warrant obtained by the Frauds Bureau
- FIRE DELIBERATELY SET
Arrested on 8/20/09
Charged with arson in the 3rd degree, attempted grand larceny in the 3rd degree, insurance fraud in the 3rd degree and reckless endangerment in the 2nd degree
An investigation by the Frauds Bureau and the FDNY Fire Marshals resulted in the arrest of a Queens man who was charged with deliberately setting fire to his 2008 Lincoln Navigator SUV. The suspect was unable to make his vehicle finance and insurance premium payments. Evidence indicated that at 3:55 a.m. on 7/21/09, the suspect parked his vehicle four blocks from his residence in Queens. He poured charcoal lighter fluid on the rear seat and ignited the liquid with a long match, suffering burns to his right hand and forearm, after which he rushed home to treat his injuries. He never reported the fire loss to the NYPD or, initially, to his insurer. When he finally reported the loss to his insurer, the carrier was able to retrieve the vehicle and assess the damage and cost. After examination of the vehicle, the Fire Marshals deemed the incident incendiary. During the investigation, after the suspect was read his Miranda rights, he acknowledged that he had set the fire. He subsequently had to seek medical care for his burn injuries.
- HOUSE AFIRE
Arrested on 8/14/09
Charged with arson in the 3rd degree, assault in the 2nd degree, reckless endangerment in the 1st degree and insurance fraud in the 2nd degree
The owner of a home heavily damaged in a 7/23/09 fire was arrested and charged with deliberately setting the blaze. The home was insured through New York Central Mutual Insurance Company for more than $500,000 and, though a claim was filed, it was not paid. The arrest followed a two-week investigation into the fire at the two-story frame structure where the defendant lived with his wife and three children. No one was at home when the fire was discovered by a neighbor who called the fire department. About 75 firefighters from Oneonta and surrounding departments fought the blaze, two of whom were injured at the scene. The Oneonta Police and Fire Departments and the Frauds Bureau, with the assistance of a private investigator from New York Central, conducted the investigation that determined the fire was deliberately set
- ALTERED DATE
Arrested on 8/12/09
Charged with possession of a forged instrument, insurance fraud and attempted grand larceny
An investigation by the Frauds Bureau and AAA Insurance Company resulted in the arrest of a Cheektowaga woman who told police that when she came home on 5/2/09, here 2001 Cadillac was gone from its parking space. However, investigators learned that on 5/3/09 her husband was arrested by the Buffalo Police Department after he used the car in a drive-by shooting in which the vehicle was struck twice by return fire. The defendant knew that the insurance coverage on the car had been cancelled at 12:01 a.m. on 5/3 so she changed the date of the theft to 5/2.
- RECORD CHECKED
Arrested on 8/7/09
Charged with insurance fraud in the 5th degree
The defendant in this case submitted an application for insurance on a clothing store he owned on which he answered "No" when asked if he had a criminal record. Several months after the policy was issued, he had a burglary at the store and filed a $21,000 claim with Erie Insurance Company for the loss. However, an investigation by the Frauds Bureau revealed that the defendant had a lengthy criminal record. Had the insurer known that fact, the policy would not have been issued. The defendant subsequently withdrew the claim and no money was paid out. An investigation conducted jointly by the Frauds Bureau, Erie Insurance Company's SIU and the Chemung County Sheriff's Office led to the arrest.
- INSUFFICIENT FUNDS
Arrested on 8/6/09
Charged with larceny in the 3rd degree
The defendant in this case arranged with an agent of Allstate Insurance Company to purchase an annuity policy. He paid the initial premium of $29,000 drawn on an account that he had opened earlier the same day which had a balance of $50. The policy was issued but the check was returned for insufficient funds. However, an investigation by the Insurance Department revealed that before the insurer received the returned check, the defendant cancelled the policy and insisted on an immediate refund. Allstate issued a check for $29,000 which the defendant brought to a local check-cashing service and collected the money in cash.
- UN-SAFE
Arrested on 8/4/09
Charged with insurance fraud in the 3rd degree
A Franklin County woman reported to New York Central Mutual Fire Insurance Company on 3/8/09 that her home had been burglarized. However, an investigation was begun when the insurer reported the claim as suspicious to the Frauds Bureau. The suspect claimed that during the burglary in her home, cash and jewelry had been taken from a safe. She faces up to seven years in prison if convicted.
- HANDYMAN
Arrested on 8/4/09
Charged with violation of Section 114.1 of the Workers' Compensation Law
The defendant in this case suffered an injury while he was employed as a cable technician and began collecting workers' compensation benefits from AIG Insurance Company. However, an investigation by the Frauds Bureau found evidence that he was working as a handyman while collecting $18,600 in benefits to which he was not entitled. In addition, during the benefit period, he submitted a Work Activity Report to his insurer stating that he was unable to work because of his injury.
- BLOWN OUT
Arrested on 8/3/09
Charged with insurance fraud in the 3rd degree and falsifying business records in the 1st degree
An investigation by the Frauds Bureau and the NYPD's Auto Crime Division led to the arrest of a Staten Island man who reported to GEICO Insurance Company that his 2008 Ford Mustang had been stolen. However, during an interview with the suspect, he admitted that he had blown the engine in the car and reported it stolen in order to collect the insurance payment.
