Arrests for September 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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- COUNTERFEIT
Arrested on 9/29/09
Charged with grand larceny and identity theft
A Suffolk County financial consultant has been charged with defrauding TD Bank of $6,900. An investigation by the Frauds Bureau and the Suffolk County Police Department’s Identity Theft Unit revealed that the defendant produced three computer-generated “Group Health Inc.” (GHI) checks in July 2009. She made the checks payable to herself and deposited them into her bank account. GHI verified that they were not official company checks and banks are liable when they cash counterfeit checks.
- WORKERS’ COMP FRAUD
Arrested on 9/28/09
Charged with violation of Section 114 of the Workers’ Compensation Law
Following an injury to her back and hip in 1993 while working as a self-employed food server, this suspect started collecting workers’ compensation benefits. During the benefit period, she submitted documents to the Fund stating that she was not employed. However, an investigation by the Frauds Bureau and the State Insurance Fund revealed that she had returned to work at a local tree care business. As a result of the fraud, she collected $129,965 in benefits to which she was not entitled.
- ALTERED DOCUMENTS
Arrested on 9/24/09
Charged with insurance fraud in the 4th degree
An upstate man was charged with altering a $1,512 repair estimate for his car transmission by marking it “Paid Cash,” indicating that the repair work had been completed when in fact it had not. He also allegedly altered a towing bill by changing the charge from $150 to $1,503. An investigation by the Frauds Bureau led to his arrest.
- CAUGHT
Arrested on 9/23/09
Charged with insurance fraud in the 3rd degree and violation of the Workers’ Compensation Law
Following a work-related injury in March 2004, the defendant in this case began collecting wage-replacement benefits. However, investigators from the Workers’ Compensation Board’s Office of the Fraud Inspector General with the assistance of the Frauds Bureau conducted surveillance that observed the defendant working as a mechanic at a local auto shop. As a result of the fraud, he collected $3,229 in benefits to which he was not entitled.
- ACCOMPLICE COOPERATES
Arrested on 9/17/09
Charged with wire fraud and mail fraud
A Brooklyn man was arrested for participating in a scheme involving the setting up and funding of false no-fault claims and stealing the profits. According to investigators, he and an accomplice set up a “slush” fund through the use of several vendors, some of whom did not exist. They then cashed the checks through several different check-cashing establishments in New York and Pennsylvania. The accomplice was arrested at an earlier date on the same charges and cooperated in the investigation which was conducted jointly by the Frauds Bureau, the FBI and U.S. Attorney’s Office.
- FOUR EMPLOYERS
Arrested on 9/16/09
Charged with insurance fraud in the 3rd degree, perjury in the 1st degree and violation of Section 114.1 of the Workers’ Compensation Law
A licensed practical nurse was injured on the job on 12/2/97 and began collecting workers’ compensation benefits. During the benefit period, she submitted two Work Activity Reports to the State Insurance Fund stating that she had not worked since her injury. In addition, on 8/3/06 she testified under oath at a Workers’ Compensation Board hearing that she was not working. However, an investigation by the Frauds Bureau found evidence that she was employed as a nurse for four different employers while fraudulently collecting $38,000 in benefits.
- WORKING
Arrested on 9/14//09
Charged with grand larceny in the 3rd degree, insurance fraud in the 3rd degree, falsifying business records in the 1st degree, offering a false instrument for filing, perjury in the 1st degree and violation of Section 114.1 of the Workers’ Compensation Law
An investigation by the Frauds Bureau led to the arrest of a Long Island construction worker who was accused of defrauding the State Insurance Fund. On 6/6/07, he suffered an injury to his foot and began collecting workers’ compensation benefits. However, investigators discovered that he had returned to work for an apartment management company in August 2008. As a result of the fraud, he collected $7,175 in benefits to which he was not entitled.
- FAILURE TO DISCLOSE
Arrested on 9/14/09
Charged with violation of the Workers’ Compensation Law
The owner of a Long Island residential carpentry business was charged with failing to disclose more than $900,000 in gross sales and accurate payroll information to the State Insurance Fund. As a result, he paid $44,000 less in workers’ compensation premiums than he rightfully owed the Fund for his coverage. His arrest was the result of an investigation by the Frauds Bureau.
- OWNER GIVE-UP
Arrested on 9/14/09
Charged with insurance fraud in the 3rd degree, grand larceny in the 3rd degree, falsely reporting an incident in the 3rd degree and making a punishable false written statement
The suspect in this case reported to the NYPD and GEICO Insurance Company that his 2002 Ford Explorer had been stolen. However, an investigation by the Frauds Bureau revealed that the NYPD’s Auto Crime Division had obtained the car in an owner give-up sting operation prior to the report of the theft.
- CLERKING
Arrested on 9/14/09
Charged with offering a false instrument for filing in the 1st degree and violation of the Workers’ Compensation Law
While collecting workers’ compensation benefits, the suspect, who now resides in Virginia, submitted six Work Activity Reports to the State Insurance Fund stating that she was not working in any capacity. However, an investigation by the Frauds Bureau, the Fund’s Division of Confidential Investigations, the Broome County Sheriff’s Office and the Virginia State Police revealed through surveillance and W-2 tax forms that she had been working as a clerk in a Walgreens Department Store for the past five years. As a result, she fraudulently collected $36,000 in benefits. The Virginia State Police assisted in locating and interviewing the suspect.
- EYE WITNESSES
Arrested on 9/10/09
Charged with leaving the scene of an accident and offering a false instrument for filing in the 1st degree
On 6/4/09, several people reported to the Albany Police Department that they had witnessed a hit-and-run accident. One of the witnesses managed to get the license plate number of the car involved. The PD located the owner of the car but when questioned he gave a written statement to the police and an affidavit to GEICO Insurance Company stating that he had no knowledge of the accident. However, the Police Department and the Frauds Bureau showed a photo spread to the witnesses and they identified the defendant.
- SURVEILLANCE SHOWS
Arrested on 9/9/09
Charged with grand larceny in the 4th degree, insurance fraud in the 4th degree, falsifying business records in the 1st degree and violation of the Workers’ Compensation Law
The defendant in this case was charged with defrauding the State Insurance Fund of $1,700 in workers’ compensation benefits. An investigation conducted by the Frauds Bureau, the Workers’ Compensation Board’s Office of the Fraud Inspector General and the Colonie Police Department found evidence that he submitted a Work Activity Report stating that he was not employed in any capacity. However, surveillance observed him working while fraudulently collecting benefits.
- STIFF PENALTY
Arrested on 9/2/09
Charged with offering a false instrument for filing in the 1st degree
The owner of a pizza parlor in Westchester County reported to the Workers’ Compensation Board that he had no employees. However, an investigation by the Frauds Bureau and the Board’s Office of the Fraud Inspector General found evidence that he had at least one employee for 11 years, for whom he avoided paying $2,500 in premiums. As a result, the Board assessed a $97,000 penalty for failure to maintain proper workers’ compensation coverage.
- STOLEN IDENTITY
Arrested on 9/2/09
Charged with identity theft, insurance fraud and falsifying business records.
A Bronx man with no medical insurance allegedly used the identity he stole from an acquaintance to obtain $70,000 in medical treatment and sue a landlord for injuries he suffered when he fell from a fire escape trying to get into his mother’s locked apartment in January 2007. An investigation by the Frauds Bureau revealed that the suspect received emergency care and follow-up medical treatment for leg injuries under the identity he assumed without that person’s knowledge. He was also charged with using the stolen identity to file a negligence lawsuit against the landlord. He claimed he suffered his injuries when he fell on an interior stairway. The landlord’s insurance company contacted the Frauds Bureau after discovering discrepancies in the lawsuit. That led investigators to look into the health insurance claims the suspect filed with Fidelis Healthcare, his former acquaintance’s health insurer.
- HOME CARE
Arrested on 9/2/09
Charged with grand larceny and violation of the Workers' Compensation Law
Following a work-related injury, a Wayne County woman began collecting workers’ compensation benefits. During the benefit period, she submitted a Work Activity Report to the State Insurance Fund stating that she was not working. However, during an investigation, she admitted to investigators that from September 2007 to June 2008 she was being paid by her uncle to care for the home-bound spouse of a family friend. As a result of the fraud, she collected $9,126 to which she was not entitled.
- SUV FIRE
Arrested on 9/2/09
Charged with attempted grand larceny in the 3rd degree, insurance fraud in the 3rd degree, falsifying business records in the 1st degree, offering a false instrument for filing in the 1st degree and falsely reporting an incident in the 3rd degree
The defendant in this case reported to the NYPD that she had parked her 2004 BMX SUV on a Manhattan street at 7:00 p.m. on 8/18/09 and when she returned at 10:40 the next morning it was gone. She subsequently filed a claim with Tri-State Insurance Company for the loss. However, FDNY records revealed that units had responded to a vehicle fire in the Bronx at 10:21 p.m. on 8/15/09. The car was identified as the SUV belonging to the defendant. Further, there was no active alarm on the vehicle, proving that the car had not been reported stolen at the time of the fire. The Frauds Bureau, the NYPD and the FDNY collaborated in this investigation.
PRIOR SUPPLEMENTS
August 2009
- TORCHED
Arrested on 8/11/09
Charged with attempted grand larceny in the 3rd and 4th degrees, insurance fraud in the 3rd and 4th degrees, falsifying business records in the 1st degree, offering a false instrument for filing in the 1st degree, falsely reporting an incident and false written statement
An investigation conducted by the Frauds Bureau and the NYPD’s Auto Crime Division led to the arrest of a Queens man charged with a lengthy list of crimes related to disposing his 2005 Nissan Pathfinder by fire. After being read his Miranda rights, the defendant admitted to investigators that he borrowed money from someone and offered his vehicle as collateral. He claimed he didn’t know the name or the whereabouts of the person from whom he borrowed the money but when he couldn’t come up with the repayment, his vehicle was torched. In an effort to cover his tracks, he subsequently reported the vehicle stolen.
- STRIPPED AND BURNED
Arrested on 8/11/09
Charged with arson in the 3rd degree
The defendant in this case reported to the NYPD that he parked his 2004 Toyota Corolla at 11:50 p.m. on 6/12/09 and when he returned at 8:10 a.m. on 6/13/09, it was missing. He subsequently filed a claim with GEICO Insurance Company for the loss. However, at 12:40 a.m. on 6/13/09, the purportedly stolen vehicle was found burning in the Jamaica Bay Wildlife Refuge by the U.S. Park Police. The vehicle was surgically stripped of its front fender and bumper and the license plate was wired to a bumper support. During an investigation by the Frauds Bureau, the NYPD’s Auto Crime Division and the Park Police, the defendant was read his Miranda rights and admitted that he gave his vehicle to another person to be stripped and disposed of by fire.
