Arrests for April 2010
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 4/19/10, Howard Bagdorf and Franklin Pearl, co-owners of The JLS Group, Inc., a New York City insurance agency, pleaded guilty to multiple counts of grand larceny in the 2nd and 3rd degrees and were sentenced to five years’ probation. They were arrested on 12/10/09 on allegations that from 8/1/07 to 2/1/09, they wrote insurance policies on 33 different companies and failed to remit premiums of more than $2 million.
- CONVICTED
On 4/29/10, Reginald Lockwood of Bainbridge, NY, was found guilty of insurance fraud in the 3rd degree following a three-day trial. Lockwood was accused of having his 1999 Jeep burned in an attempt to collect a $3,800 insurance payment. He arranged for another person or persons to take the vehicle from Binghamton and drive it to a rural area where the car was found burned in January 2007. Investigators later discovered that a flammable substance was used to burn the vehicle, but no one other than Lockwood was ever charged. The Frauds Bureau, the Broome County Sheriffs Department and the Broome County Fire Investigation Bureau conducted the investigation that resulted in his arrest on 2/23/09.
- TICKETED
Arrested on 4/28/10
Charged with insurance fraud in the 3rd degree
The defendant in this case was involved in an auto accident on 1/17/10 and was issued several tickets at the scene, including a ticket for being unlicensed and uninsured. On 1/18/10, he purchased auto insurance through Progressive Insurance Company and submitted a $3,905 claim on 1/23/10 for the damage that resulted from the 1/17/10 accident. However, an investigation by the Frauds Bureau and Progressive’s SIU revealed that he allegedly stated on the claim that the accident had occurred on 1/18/10, the day the coverage became effective. Progressive obtained a copy of the Police Accident Report which listed the date of the accident as 1/17/10, contradicting the accident date the defendant reported on the claim.
- NOT LEGALLY MARRIED
Arrested on 4/28/10
Charged with insurance fraud in the 2nd degree
In May 2007, an employee at the Rochester Psychiatric Center listed her ex-husband on her employer-sponsored health insurance contract as her legal husband, although they had been divorced since the 1980s. On 4/1/10, she met with investigators from the Frauds Bureau and the Rochester Police Department and admitted that she had named her ex-husband as her spouse though they were not legally married because he needed medical care and did not have health insurance. As a result of the fraud, Excellus Health Plan paid out $162,126 in medical benefits to which the defendant’s ex-husband was not entitled. She surrendered herself at the Rochester Police Department and was charged with insurance fraud in the 2nd degree.
- NO PAYMENT DUE
Arrested on 4/21/10
Charged with insurance fraud in the 4th degree and grand larceny in the 4th degree
The defendant in this case was involved in an auto accident while driving his 2004 Nissan Quest valued at $24,000. He subsequently reported to the NYPD and Allstate Insurance Company that the car had been stolen in an attempt to cash in on the insurance proceeds. The Frauds Bureau and Allstate’s SIU pooled resources in the investigation that led to his arrest.
- INFLATED CLAIM
Arrested on 4/20/10
Charged with insurance fraud in the 3rd degree
A Tioga County contractor filed a $7,800 claim with Chartis Insurance Company after he installed a faucet that proved to be defective and caused water damage to a house he was working on. However, an investigation uncovered evidence that the defendant inflated the claim above the $1,000 actual cost of the damage.
- TRUMPED UP
Arrested on 4/19/10
Charged with arson in the 3rd degree and insurance fraud in the 2nd degree
A two-year investigation conducted jointly by the Frauds Bureau, the Town of Kent Police Department and the Putnam County DA’s Office led to the arrest of a liquor-store owner accused of arson and insurance fraud. He originally reported that he was assaulted, robbed, tied up and left in his burning store by four unknown persons on 5/24/08. However, the investigation revealed that his business was in financial ruin. The bank had begun foreclosure proceedings and he owed $39,000 in unpaid state taxes. He was seen running from the store before the fire triggered an alarm at 11:40 p.m. When the police arrived, they found him standing outside the store with his hands bound behind his back. He was charged with setting the fire deliberately in an unsuccessful attempt to collect an insurance payment.
- FALSE REPORT
Arrested on 4/19/10
Charged with insurance fraud in the 3rd degree and offering a false instrument for filing
Following an accident involving his 2002 Cadillac Escalade, a Staten Island man allegedly reported to the NYPD and Progressive Insurance Company that the car had been stolen in order to collect the insurance payout. His arrest was the result of an investigation by the Frauds Bureau and Progressive’s SIU.
- OVERCHARGED
Arrested on 4/16/10
Charged with offering a false instrument for filing
The owner of a body shop in Queens was arrested for allegedly enhancing a bill for repairs to a 2008 Infiniti. An investigation by the Frauds Bureau and GEICO Insurance Company revealed that the defendant had overcharged GEICO by $1,450 by billing for new parts when he had actually only repaired old parts.
- GOTCHA!
Arrested on 4/15/10
Charged with insurance fraud in the 4th degree
A sting operation conducted by the Frauds Bureau and the Suffolk County DA’s Office, with the assistance of Hartford and OneBeacon Insurance Companies, led to the arrest of a body shop owner suspected of enhancing vehicle damage. OneBeacon supplied a 2001 BMW X-5 and Hartford supplied a pretext insurance policy to be used in the sting. A Frauds Bureau investigator, working undercover, drove the vehicle to a parking area on a Suffolk County road. The undercover called the suspected body shop and created a scenario in which he was driving to McArthur Airport to catch a flight and when he swerved to avoid an oncoming car, he hit a guard rail, causing the vehicle to become disabled. The car had been deliberately damaged beforehand so that the damage would be consistent with this type of accident and a certified appraiser determined the amount of the damage was $2,729. The vehicle was kept under constant surveillance in the parking area and some time later investigators observed the vehicle being picked up by the body shop owner. Hartford’s adjuster subsequently went to the body shop and appraised the damage at $4,610.88. Hartford paid the claim and when the damage was repaired, the undercover picked up the vehicle. The investigation revealed that the body shop had overcharged Hartford by $2,100 by enhancing the original damage and by billing for new parts when they had actually only repaired old parts.
- FAILURE TO DISCLOSE
Arrested on 4/14/10
Charged with violation of Section 114.1 of the Workers’ Compensation Law
An investigation by the Frauds Bureau and the State Insurance Fund resulted in the arrest of a flooring contractor who allegedly failed to disclose accurate sales and payroll information on an application for workers’ compensation insurance coverage. As a result of the fraud, the State Insurance Fund suffered $33,672 in lost premiums.
- MORE TO COME
Arrested on 4/13/10
Charged with grand larceny in the 3rd degree, insurance fraud in the 3rd degree, falsifying business records in the 2nd degree and offering a false instrument for filing in the 2nd degree
An ongoing no-fault investigation resulted in the arrest of a New York City man who was charged with intentionally crashing his vehicle into another vehicle. This defendant sought and received medical treatment for nonexistent injuries for which Esurance Company was billed more than $63,000. Twenty-one other defendants have previously been arrested in connection with this investigation, which is being conducted by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad.
- FOUND IN THE BRONX
Arrested on 4/10/10
Charged with false and fraudulent insurance claim and false report to law enforcement under Florida statute
The defendant in this case reported his car stolen, stating that he had last seen the vehicle on 9/5/08 in front of his residence in Florida. However, an investigation by the Frauds Bureau, the Florida Division of Insurance Fraud and the Pinellas County Sheriff’s Office revealed that the vehicle was discovered in a Bronx parking garage with the original key and a parking stub stamped with a date and time of 9/4/08 at 2:34 p.m. The defendant was arrested on 4/10/10 by the authorities in Florida.
- NO JOB
Arrested on 4/9/10
Charged with insurance fraud in the 3rd degree and falsifying business records in the 1st degree
An investigation by the Frauds Bureau led to the arrest of a Rome, NY, man for filing an allegedly fraudulent no-fault claim. Following an auto accident on 12/7/08, the suspect filed a claim with Nationwide Insurance Company for lost-wage benefits. He state on the claim that he was scheduled to start a job at a local tavern on 12/8/08 at 30 hours a week but that injuries he suffered in the accident prevented him from doing so. However, the investigation revealed that he was never employed at the tavern and as a result of the fraud, he collected $6,090 in benefits to which he was not entitled. The tavern owner at first told investigators that the suspect was an employee but later admitted that he was not.
- OWNER WAS DRIVER
Arrested on 4/6/10
Charged with insurance fraud in the 3rd degree, offering a false instrument for filing in the 1st degree and falsely reporting an emergency
A Staten Island man reported that his car was stolen and subsequently filed a claim with GEICO Insurance Company for the loss. However, an investigation by the Frauds Bureau, the NYPD’s Auto Crime Division and the FDNY Fire Marshals revealed that the car was recovered in Brooklyn destroyed by fire. A forensic examination determined that the ignition was not defeated and that the original key, which had not been duplicated, was used to drive the car.
- EYE WITNESS ACCOUNTS
Arrested on 4/6/10
Charged with insurance fraud in the 5th degree and falsely reporting an incident in the 3rd degree
At 12:47 p.m. on 2/24/10, an upstate woman reported that her car had been stolen from her residence. It was later learned that at 10:22 a.m. on that same day, the car had been involved in an accident. Moreover, during interviews conducted in the course of an investigation by the Frauds Bureau and the Niagara Falls Police Department, witnesses stated the suspect was driving her car when it was involved in the accident and she fled the scene. Records showed that she had no comprehensive coverage at the time of the accident.
- ALTERED DATES
Arrested on 4/5/10
Charged with insurance fraud in the 4th degree
A self-employed construction worker was arrested when it was discovered that he submitted an altered Certificate of Insurance to the State Insurance Fund. He was charged with changing the dates of coverage from 7/17/08-7/17/09 to 7/17/06-7/1709. When faced with the evidence, the defendant admitted the fraud and paid the $2,025 in premiums due to the State Fund. The arrest was the result of an investigation by the Frauds Bureau.
