Arrests for December 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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- CONVICTED
Jeffrey Alnutt, his daughter Aubrey Alnutt-Pagan and her husband, Victor Pagan, were convicted of insurance fraud, grand larceny, reckless endangerment and conspiracy for their part in a 2004 fire at an apartment building in Gloversville, NY, owned by Jeffrey Alnutt and in which the daughter and son-in-law lived. Jeffrey Alnutt was also convicted of arson. The three 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 the stove. However, the case was reopened following a fatal fire in December 2007 at another property owned by Jeffrey Alnutt. He has been charged in a separate indictment in that fire. The case is tentatively scheduled for trial in April 2010. Alnutt is currently incarcerated in Schoharie County Correctional Facility on a federal weapons possession charge.
- GUILTY PLEAS
Pamela Ghosio, a former New York State resident currently living in Kentucky, pleaded guilty to attempted workers’ compensation fraud at her arraignment on 12/29/09. During the benefit period, she failed to report her full-time employment to the State Insurance Fund and continued to collect benefits to which she was not entitled. The case was investigated by the Frauds Bureau with the cooperation and assistance of the Kentucky Department of Insurance Fraud Unit. After Kentucky investigators contacted Ghosio, her attorney arranged her surrender and a plea agreement with the Broome County DA’s Office. Under the agreement, she forfeited all money and benefits and agreed to pay $3,000 in restitution.
On 12/8/09, Lakisha Cribb, a customer service representative for Verizon, pleaded guilty to one count of insurance fraud. Cribb admitted that she falsely reported her 2005 Dodge Stratus stolen when in fact she had arranged to have the car burned in order to collect the insurance payment.
- NINE FALSE REPORTS
Arrested on 12/29/09
Charged with grand larceny in the 3rd degree, insurance fraud in the 3rd degree and violation of the Workers’ Compensation Law
A Schenectady woman began collecting workers’ compensation benefits following a back injury suffered in 1993 while working for the New York State Health Department. Between 9/11/06 and 12/3/09, she filed nine Work Activity Reports stating that she was not employed in any capacity. However, an investigation by the Frauds Bureau and the State Insurance Fund found evidence that she began delivering newspapers for the Albany Times Union in 2006. As a result, she fraudulently collected $31,612 in benefits. The Albany Police Department and the Workers’ Compensation Board’s Office of the Fraud Inspector General also assisted in the investigation that led to her arrest.
- CASHING IN
Arrested on 12/28/09
Charged with grand larceny in the 3rd degree
A Mechanicville, NY, couple was charged with cashing more than $13,000 in workers’ compensation checks that were issued to the husband’s father. A routine audit of claims by Crum & Forster Indemnity Company revealed suspicious activity and the insurer notified the Frauds Bureau. Investigators found that the father had died on 9/4/08 but the couple failed to alert the insurance company and continued to receive and cash the checks.
- GRAND OPENING
Arrested on 12/23/09
Charged with insurance fraud in the 3rd degree and violation of the Workers’ Compensation Law
Following a work-related injury in January 2006, a New Paltz, NY, woman allegedly collected $6,749 in workers' compensation benefits to which she was not entitled. An investigation by the Frauds Bureau revealed that she was the proprietor/operator of a nail salon. Subsequent surveillance disclosed that she was actively involved in the operation of the business. In fact, she was photographed with family members and city officials for a press release issued by the City of Newburgh announcing the grand opening of the salon on 2/25/09.
- BOGUS MEDICAL RECORDS
Arrested on 12/19/09
Charged with falsifying business records in the 2nd degree and violation of the Workers’ Compensation Law
An investigation by the Frauds Bureau and the State Insurance Fund led to the arrest of an upstate doctor accused of providing false information on the medical records of an employee in his office. The doctor submitted statements to the State Fund maintaining that the employee was disabled and unable to work. However, surveillance and witness statements showed that she was in fact working in the doctor’s office while collecting $605 in workers’ compensation benefits to which she was not entitled.
- APPLICATION FRAUD
Arrested on 12/18/09
Charged with criminal possession of a forged instrument in the 2nd degree, offering a false instrument for filing in the 1st degree, insurance fraud in the 5th degree and violation of the Workers’ Compensation Law
The owner and president of a taxi company was charged with submitting an application for workers’ compensation and employment liability insurance to the State Insurance Fund that contained materially false information. The defendant named a person other than himself as the owner of the company and forged that person’s signature on the application. During a joint investigation by the Frauds Bureau and the State Insurance Fund, investigators discovered that the person whose name appeared on the application not only did not own the company but in fact has been confined to a hospital since May 2008.
- STOLEN BENEFITS
Arrested on 12/17/09
Charged with offering a false instrument for filing in the 1st degree and grand larceny in the 4th degree
A Syracuse man was incarcerated while collecting workers’ compensation benefits. However, his checks continued to be delivered to a residence that he shared with his mother. She completed Work Activity Reports in her son’s name and returned them to the State Insurance Fund stating that he was not in jail. She forged his name on benefit checks issued to her son and cashed them. She deposited the money into her own account and subsequently withdrew $1,620.91 from that account. An investigation by the Frauds Bureau and the State Insurance Fund led to her arrest.
- BAD ACTOR
Arrested on 12/17/09
Charged with insurance fraud in the 3rd degree, falsifying business records in the 1st degree, perjury in the 1st degree and violation of the Workers’ Compensation Law
The defendant in this case reported an injury to his left eye on 1/4/06 while he was employed at a cement plant. He claimed that his condition worsened until he lost all vision in his left eye and had minimal vision in his right eye which was extremely light sensitive. He reported that he spent his days at home in total darkness because any light caused him great pain. He appeared at a workers’ compensation hearing wearing dark glasses and being led by a companion. However, video surveillance conducted during a year-long investigation by the Frauds Bureau and the Workers’ Compensation Board’s Office of the Fraud Inspector General showed him attending a gym, driving and generally acting as a seeing person. It is estimated that he would have been paid $700,000 in benefits for the eye injury if the investigation had not uncovered evidence of the fraud.
- MONEY OWED
Arrested on 12/16/09
Charged with offering a false instrument for filing in the 1st degree and violation of the Workers’ Compensation Law
An investigation by the Frauds Bureau resulted in the arrest of the president of a security/investigative services company who was charged with submitting an application for workers’ compensation coverage that contained material misrepresentations about his involvement with the company, as well as other names under which the company previously did business. Moreover, he allegedly failed to report that he had a prior policy with the State Insurance Fund on which more than $40,000 was owed.
- HOME-WORK
Arrested on 12/16/09
Charged with perjury in the 1st degree and violation of the Workers’ Compensation Law
Following a work-related injury on 2/8/94, the suspect in this case began collecting workers’ compensation benefits. In October 2008, the State Insurance Fund conducted a routine check of her case because of the length of her benefit period. Investigators discovered that while she was receiving benefits, she was operating a child care service out of her home. As a result, she collected $11,255 in benefits to which she was not entitled. When confronted with the evidence, the suspect submitted a signed statement admitting that she had been operating the service from September 2007 to the time of her arrest.
- CHIROPRACTOR CAUGHT
Arrested on 12/15/09
Charged with grand larceny in the 3rd degree, insurance fraud in the 3rd degree and falsifying business records in the 1st degree
An investigation by the Frauds Bureau, the Queens DA’s Office and Empire Blue Cross and Blue Shield led to the arrest of a Queens chiropractor charged with insurance fraud after investigators found evidence that he convinced a “patient” to fabricate injuries and then billed Empire Blue Cross and Blue Shield more than $26,000 for medical treatments over a three-month period. He allegedly paid a $1,000 kickback to the “patient” who was actually an undercover investigator. According to the charges, the defendant met the undercover at his office on 9/16/08 where he instructed the undercover to fabricate back and knee injuries in order to obtain insurance payments. He allegedly offered the undercover the kickback at that meeting.
- WORKING THE BAR
Arrested on 12/14/09
Charged with insurance fraud in the 3rd degree and violation of the Workers’ Compensation Law
An upstate factory worker filed a workers’ compensation insurance claim on 6/23/86. On at least one occasion, he submitted a Work Activity Report to the State Insurance Fund stating that he was not employed. However, an investigation by the Frauds Bureau revealed that he was working at a local bar in Utica, NY. During the investigation period, he fraudulently collected $3,580 in benefits.
- OWNER OF TWO SUBWAYS
Arrested on 12/11/09
Charged with violation of the Workers’ Compensation Law
After sustaining a back injury on the job, a former correction officer filed for workers’ compensation benefits on 5/30/05. However, an investigation by the Frauds Bureau, the Workers’ Compensation Board and the Suffolk County DA’s Insurance Crimes Bureau found evidence that he bought and operated two Subway Restaurant franchises, one in June 2005 and the second in January 2006. As a result, he collected $15,485 in benefits to which he was not entitled.
- IN THE SHOP
Arrested on 12/10/09
Charged with insurance fraud in the 3rd degree and falsely reporting an incident in the 3rd degree
On 6/9/09, the defendant in this case reported to the Mount Vernon Police Department and Chubb Insurance Company that her 2006 Infiniti M45 had been stolen. However, an investigation by the Frauds Bureau, the Westchester County Auto Crime Task Force and the Westchester County DA’s Office revealed that the defendant had the car towed to an Infiniti dealership in Melbourne, FL, on 3/2/09 for repairs. The car remains at that location.
- BARTENDER ON DUTY
Arrested on 12/9/09
Charged with insurance fraud in the 3rd degree, grand larceny in the 3rd degree and offering a false instrument for filing
An investigation by the Frauds Bureau, the Niagara Falls Police Department and the State Insurance Fund’s Division of Confidential Investigations resulted in the arrest of a upstate man charged with fraudulently collecting nearly $10,000 in benefits from the State Insurance Fund. The man allegedly was working as a bartender at a local bar in Niagara Falls between 10/9/08 and 2/30/09 while fraudulently collecting the benefits.
- COMPANY PAYS PREMIUM
Arrested on 12/8/09
Charged with insurance fraud in the 3rd degree and grand larceny in the 3rd degree
A Rochester man responsible for employee benefits and accounts payable/receivable was accused of submitting an application to his employer for health insurance coverage for his daughter and arranging to have company funds pay her monthly premium. However, his daughter was not an employee of the company. When confronted with the evidence, the defendant admitted the fraud. His arrest was the result of an investigation by the Frauds Bureau and the Monroe County DA’s Office.
- A DAY LATE
Arrested on 12/8/09
Charged with insurance fraud in the 5th degree
The defendant in this case was involved in an auto accident but had no insurance coverage at the time. She allegedly renewed her policy through Progressive Insurance Company on the day of the accident and later reported that the accident had occurred the following day. However, the Police Accident Report and Progressive’s records confirmed that the accident occurred before the policy was renewed. The Frauds Bureau pooled resources with the City of Elmira Police Department and Progressive in the investigation that led to her arrest.
- OWNER GIVE-UP
Arrested on 12/8/09
Charged with arson in the 3rd degree, insurance fraud in the 3rd degree, falsely reporting an incident in the 3rd degree and false written statement
A Brooklyn man reported to the NYPD that his 2005 Toyota Camry had been stolen and subsequently filed a claim with United Automobile Insurance Company for the loss. However, an investigation by the Frauds Bureau and the FDNY Bureau of Fire Investigations revealed that the defendant had poured gasoline into the passenger compartment and set the car on fire in order to collect an insurance payout.
- A TRIO OF CONSPIRATORS
Arrested on 12/4/09
Charged with criminal mischief in the 2nd degree, auto stripping in the 3rd degree and conspiracy in the 5th degree
An investigation by the Frauds Bureau and the FDNY Bureau of Fire Investigations resulted in the arrest of a Brooklyn man who allegedly was paid $750 by the owner of a 2006 Pontiac G6 to dispose of the car. A second defendant facilitated the arrangement by introducing the other two. The owner of the car was previously arrested in this case.
- FALSE REPORT
Arrested on 12/3/09
Charged with grand larceny, insurance fraud and false written statement
The Frauds Bureau received information from the NYPD’s Bronx Auto Larceny Unit in June 2009 stating that a car had been reported stolen at 8:00 p.m. on 5/25/09. However, the car, which was registered to the defendant in this case, was recovered at 6:30 a.m. on 5/25/09, some 13 ½ hours before the theft report. The defendant was arrested and charged with grand larceny, insurance fraud and false written statement.
- NO DOCTOR
Arrested on 12/3/09
Charged with unauthorized practice of a profession
A doctor has been arrested in connection with a medical facility in Staten Island where an unlicensed man represented himself as a doctor and treated several patients, using the tax ID numbers of licensed physicians associated with the clinic. This was allegedly done with the knowledge of those physicians who were sometimes present during treatment. The unlicensed man and another doctor were previously arrested in this case.
- HOME ENGINE REPAIR
Arrested on 12/2/09
Charged with grand larceny in the 3rd degree, insurance fraud in the 3rd degree, falsifying business records in the 1st degree and violation of the Workers’ Compensation Law
The defendant in this case began collecting workers’ compensation benefits after injuring his back working as a diesel mechanic. However, investigators discovered that he was working as a diesel mechanic out of his home while claiming his injury prevented him from working. As a result of the fraud, he collected more than $10,000 in benefits to which he was not entitled.
- NO COLLISION COVERAGE
Arrested on 12/2/09
Charged with insurance fraud in the 3rd degree
An investigation by the Frauds Bureau and the NYPD’s Robbery Squad led to the arrest of a Staten Island man who reported that his car was stolen at gunpoint. However, investigators found evidence that the suspect had been involved in an accident in which the car rolled over. Blood samples taken from the car and DNA samples matched the suspect’s. Furthermore, he did not have collision coverage at the time of the accident.
- FRAUDULENT CERTIFICATE
Arrested on 12/2/09
Charged with possession of a forged instrument, falsifying business records, grand larceny and insurance fraud
A Queens painter was charged with submitting a fraudulent Certificate of Insurance to a contractor as proof that he had workers’ compensation insurance as required by New York State Law. However, an investigation by the Frauds Bureau revealed that the Certificate was fraudulent. As a result, he defrauded the State Insurance Fund of $1,214 in lost premiums.
- LET’S DANCE
Arrested on 12/1/09
Charged with insurance fraud in the 3rd degree
A Poughkeepsie man filed a claim for lost-wage benefits under the no-fault portion of his auto insurance after being injured in an accident. He reported to New York Central Mutual Insurance Company that he was unable to work as a result of his injuries. However, during the course of an investigation by the Frauds Bureau, evidence was uncovered that the defendant was working as a dance instructor at several local dance studios. As a result of the fraud, he collected more than $10,000 in lost wages to which he was not entitled.
PRIOR SUPPLEMENTS
November 2009
- 19 ARRESTED SO FAR
Arrested on 11/30/09
Charged with insurance fraud, grand larceny, falsifying business records and offering a false instrument for filing
In an ongoing investigation involving staged accidents, two defendants were charged with intentionally crashing their vehicles into other vehicles. The defendants then billed insurers for medical treatment of their nonexistent injuries. Seventeen others have previously been arrested in this case.
