Arrests for August 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!
*********************************************
- SENTENCED
Kingston resident Erika Bravo was sentenced on 8/23/10 to six months in jail and five years’ probation and ordered to pay $34,900 in restitution for fraudulently collecting workers’ compensation benefits while she was employed. Following a workers’ compensation hearing at which Bravo testified that she was not working, her former employer noticed her working at a local fast food restaurant. An investigation by the Frauds Bureau and the Town of Ulster Police Department subsequently revealed that she had been working for two years using the name of a distant relative, as well as a fictitious address and Social Security number.
Jeffrey Alnutt, who was convicted on 5/10/10 of charges that he set a fire in 2007 at a home he owned in which a tenant died, was sentenced on 8/19/10 for those charges. Alnutt received a sentence of 25 years to life on a murder conviction; 5 to 15 years on second-degree manslaughter; 25 years on second-degree arson; 5 to 15 years on third-degree arson; and time served on second-degree reckless endangerment. He had previously been convicted of setting fire to another home he owned in 2004 and is serving 5 to 15 years in that case. All the sentences are to be served concurrently. Alnutt’s daughter and son-in-law also got jail time for their part in the 2004 scheme. The jury convicted them of conspiring to set fire to the home in order to collect an insurance payment of $210,000 on a claim they filed for the loss. An investigation conducted jointly by the Frauds Bureau, the Fulton County DA’s Office, the Gloversville Police and Fire Departments, the State Police and the State Office of Fire Prevention and Control resulted in successful conclusions in these cases.
Anna Healey, a 79-year-old Warren County woman, was sentenced on 8/16/10 to a three-year conditional discharge and ordered to pay $242,000 in restitution. Healey began collecting workers’ compensation death benefits after the job-related death of her husband. An investigation by the Frauds Bureau and the State Insurance Fund’s Confidential Investigation Unit found evidence that she had remarried, rendering her ineligible for the benefits. However, she failed to notify the State Fund of her remarriage and continued to accept the benefits for more than 30 years. She was arrested on 5/5/10 and pleaded guilty on 6/21/10 to a charge of offering a false instrument for filling for submitting written statements to the State Fund falsely reporting that she was not married.
Brian Finley of Monroe County was convicted of insurance fraud and sentenced on 8/9/10 to a year’s probation and ordered to repay $6,200 to the Excellus Health Plan. He was arrested on 5/10/10 for naming his ex-wife as his spouse on an application for employer-sponsored health insurance although they were no longer married. As a result, Excellus paid more than $29,000 in medical benefits to which the ex-wife was not entitled. The Frauds Bureau conducted the investigation that resulted in his arrest.
- CONVICTED
Akiva Abraham, a former physician whose license was revoked in 2005, was convicted of insurance fraud on 8/25/10 in connection with a fire at a commercial property he owned in Saratoga, NY. At the same time, he was acquitted on charges of arson and reckless endangerment. The property in question, the Saratoga Winners nightclub, was closed at the time of the fire and had been vacant for three years prior to Abraham’s purchase. He falsely valued the property in order to obtain a $475,000 mortgage and insured the property based on the bogus mortgage. After the fire, he filed a “Property Loss Notice” in an attempt to collect more than $380,000 in insurance proceeds. He faces up to 15 years in prison when sentenced on 10/15/10. He was arrested on 5/27/09 following an investigation by the Frauds Bureau, the Town of Colonie Police and Fire Departments, the State Police, the Albany County DA’s Office, the State Office of Fire Prevention and Control and the Albany County fire coordinator.
- GUILTY PLEA
Lisa Kline, of Albany, NY., pleaded guilty on 8/4/10 to grand larceny in the 2nd degree for her part in stealing $474,000 from Progressive and Mercury Insurance Companies over a ten-year period. The scheme was carried out between 2000 and 2006 while Kline was employed as a claims examiner by Progressive and later when she worked for Mercury. (She was fired last December.) She issued insurance company checks for supplemental payments to policyholders to whom legitimate claims had already been paid. She used false claim numbers, or in some cases, no claim numbers, on the checks. She then forged claimants’ signatures and countersigned the checks, making them payable to herself, or gave the checks to her two co-defendants whom she enlisted to cash checks made out to legitimate claimants who were unaware the checks had been issued. The cases against her co-defendants are pending.
- WANTED: SNOW-PLOWING CONTRACT
Arrested on 8/31/10
Charged with forgery in the 2nd degree
The wife of a remodeling business owner faxed an ACORD Certificate of Insurance to a contractor as proof that the business had workers’ compensation and general liability insurance coverage as required by New York State Law. However, an investigation by the Frauds Bureau revealed that she had altered the effective coverage dates on an outdated Certificate when in fact, no such coverage existed. During an interview, the defendant admitted that she had forged the Certificate so that her husband could maintain a snow-plowing contract. On 8/31/10, she surrendered herself at the Monroe County Sheriff’s Office and was charged.
- DAUGHTER OUT-LAW
Arrested on 8/30/10
Charged with criminal possession of a forged instrument in the 2nd degree
When the State Insurance Fund reported checks issued to a beneficiary had been cashed after the beneficiary had died, the Frauds Bureau initiated an investigation. Evidence indicated that the defendant had forged the signature on nine checks issued to her father-in-law and cashed them after his death. She was arrested and released on an appearance ticket returnable on 9/2/10.
- DRIVER NOT RETIRED
Arrested on 8/26/10
Charged with violation of Section 114 of the Workers’ Compensation Law
Following a job-related injury, an Albany County man began collecting workers’ compensation benefits. On several occasions during the benefit period, he submitted Work Activity Reports to the State Insurance Fund stating that he was unable to work as a result of his injury. However, an investigation by the Frauds Bureau revealed that he was working as a driver at a local retirement center while collecting $60,534 to which he was not entitled.
- WORKING AND COLLECTING
Arrested on 8/26/10
Charged with violation of Section 114 of the Workers’ Compensation Law
The defendant in this case provided materially false information to the Workers’ Compensation Board stating that his job-related injury prevented him from working. However, Frauds Bureau investigators learned that he had worked at several construction sites as a mason and general laborer while he fraudulently collected $8,480 in benefits.
- PAST PREMIUMS DUE
Arrested on 8/26/10
Charged with offering a false instrument for filing in the 1st degree
A health care worker submitted an application to the State Insurance Fund for workers’ compensation insurance coverage for a health care services company on which he stated that he was not involved in the operation of the business. However, an investigation by the Frauds Bureau turned up evidence that the suspect was the sole owner/operator of the company and allegedly lied to avoid paying more than $11,000 in premiums he owed to the Fund for a previous policy issued in the name of another company.
- FRAUDULENT CERTIFICATE
Arrested on 8/26/10
Charged with offering a false instrument for filing in the 1st degree
In order to obtain a building permit to put a roof on a local residence, an upstate roofer submitted a Certificate of Insurance to the State Insurance Fund as proof that he had workers’ compensation insurance coverage as required by New York State Law. However, an investigation by the Frauds Bureau and the State Fund revealed that the Certificate was fraudulent and no coverage was in place.
- OFF DUTY
Arrested on 8/25/10
Charged with violation of Section 114 of the Workers’ Compensation Law
The defendant in this case reported to his supervisor on 2/18/10 that he had back pain due to a pre-existing condition and was assigned to light duty. He failed to report to work on 2/19 but reported after the weekend on 2/22. He told his supervisor that he had slipped on ice on his way to work and was taking pain medication. He was instructed to leave work and not to report back until he had a physician’s note stating he was fit for duty. An investigation by the Frauds Bureau and the Tompkins County Sheriff’s Office found evidence that on 3/29/10, he filed a claim for workers’ compensation benefits stating that he had sustained a job-related back injury on 2/19/10, a day on which he had not reported to work at all.
- NO EXPENSES INCURRED
Arrested on 8/19/10
Charged with insurance fraud in the 4th degree and falsifying business records in the 1st degree
Following an auto accident on 1/14/10, a self-employed resident of Saratoga County applied to Erie Insurance Company for reimbursement of $2,800 in expenses under the no-fault portion of his auto insurance coverage. On the application, he stated that the expenses included day care for his children which was purportedly being provided by his live-in girlfriend, the children’s mother. He also listed transportation expenses and included a receipt from a local taxi company. However, an investigation by the Frauds Bureau and Erie’s SIU revealed that his girlfriend lived out of state and did not move to New York until March 2010. In addition, the taxi receipt had allegedly been completed by the defendant.
- OFF THE BOOKS
Arrested on 8/19/10
Charged with offering a false instrument for filing and violation of Section 114.3 of the Workers’ Compensation Law
An investigation by the Frauds Bureau led to the arrest of an upstate business owner for knowingly providing false employment information to the Workers’ Compensation Board and the Broome County Health Department. He stated that he had no employees and, therefore, had no need for workers’ compensation insurance coverage. However, investigators learned that he actually had three employees who were being paid “off the books.” During an interview, the defendant admitted the crime but refused to sign a statement.
- OFF THE BOOKS 2
Arrested on 8/12/10
Charged with offering a false instrument for filing in the 1st degree and violation of Section 114.2 of the Workers’ Compensation Law
An investigation into a suspicious claim led to an investigation by the Frauds Bureau and the State Insurance Fund that resulted in the arrest of the owner of a home repair business. Investigators discovered that the business owner did not have workers’ compensation insurance coverage and was paying his employee “off the books.” When that employee sustained a work-related injury, the business owner submitted false documentation to the State Insurance Fund and the Workers’ Compensation Board in order to conceal the employee’s work history and hinder the investigation.
- $6.7 MILLION STOLEN
Arrested on 8/5/10
Charged with grand larceny in the 1st degree and scheme to defraud in the 1st degree
The owner and president of a title abstract company and his company were indicted on charges of stealing more than $6.7 million in connection with more than 105 real estate transactions. His company acted as a title agent for various title insurance companies, primarily Stewart Title Insurance Company. Between November 2006 and April 2008, he and his company allegedly failed to record the deeds, mortgages and other documents on 105 real estate closings, diverted the money to various accounts and then depleted the accounts. Stewart Title, having been obligated by the defendant and his company to insure the transactions, ultimately sustained the loss from the thefts and paid nearly $5.4 million to cover unpaid fees and taxes. The Frauds Bureau and the Manhattan DA’s Office pooled resources in the investigation that led to the arrest.
- FORGED CHECKS CASHED
Arrested on 8/3/10
Charged with insurance fraud in the 4th degree
The wife of a workers’ compensation benefit recipient who had died on 2/23/10 failed to notify the State Insurance Fund of his death. She continued to collect and cash five benefit checks totaling $1,500 that were issued to her husband after his death. Moreover, she submitted a Work Activity Report to the Fund stating that her husband was still alive. Her arrest resulted from an investigation by the Frauds Bureau and the State Fund.
- FRIEND FLEES SCENE
Arrested on 8/3/10
Charged with insurance fraud in the 4th degree, offering a false instrument for filing in the 1st degree, making a punishable false written statement and falsely reporting an incident in the 3rd degree
An investigation by the Frauds Bureau and the NYPD’s Auto Crime Division resulted in the arrest of a Queens woman who lent her father’s car to a friend who was later involved in an accident with three other vehicles and fled the scene. The defendant told her father that the car had been stolen and he reported the theft to the NYPD. During an interview, the defendant admitted that the car had not been stolen but had in fact been involved in an accident.
PRIOR SUPPLEMENTS
June 2010
- RESTITUTION PAID
The owner of the Yellow Taxi Company of Syracuse, Inc., was originally charged on 12/18/09 with submitting an application for workers’ compensation and employer’s liability insurance 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. However, an investigation conducted jointly by the Frauds Bureau and the State Insurance Fund revealed 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. On 6/28/10, the charges against the defendant were dismissed in satisfaction of the company’s arrest, conviction, sentencing, and payment of $5,000 in restitution.
May 2010
- OWNER GIVE-UP
Arrested on 5/21/10
Charged with arson in the 3rd degree and larceny
The defendant in this case reported to the Suffolk County Police Department and to Allstate Insurance Company that his 1998 Ford Windstar had been stolen. However, an investigation by the Frauds Bureau and the PD revealed that he allegedly set fire to the car in an effort to obtain a $3,000 insurance payment.
