Arrests for February 2012
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 1-888-372-8369
CAUGHT!
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- SENTENCED
Thomas Douglass, a former Newburgh City Police Officer, was sentenced on 2/10/12 to 1-to-3 years in prison and ordered to pay $13,000 in restitution to State Farm Insurance Company. After an eight-day trial, he was convicted on 11/23/11 of insurance fraud and falsifying business records, both felonies. Those charges stemmed from Douglass’s filing of an auto insurance claim in which he fraudulently reported that damage to his vehicle was caused by his hitting a deer while he was driving off-duty in October 2009. In fact, a car-deer accident was not the cause of the damage to his car. As part of the prosecution, Douglass’s friend, Scott Hecht, a tow-truck operator who aided Douglass in filing the false claim, was convicted of perjury for falsely testifying before the Ulster County Grand Jury as to the circumstances of Douglass’s auto accident.
- PARTS NOT REPLACED
Arrested on 2/28/12
Charged with grand larceny in the 4th degree
An investigation conducted by the Insurance Frauds Bureau resulted in the arrest of the office manager at an upstate auto body shop. A customer brought his car in for collision damage repair and the defendant billed him in the amount of $2,306 for the work. However, investigators learned that the customer was charged for replacement of certain parts when, in fact, those parts were not replaced.
- WORKERS WITHOUT COVERAGE
Arrested on2/27/12
Charged with violation of Section 52.1 of the Workers’ Compensation Law
The sole owner of an upstate tree service was charged with violation of section 52.1 of the Workers’ Compensation Law. He allegedly did not provide insurance coverage for his five employees for the time periods of 2/10/09-3/3/10 and 3/14/11-12/5/11. His arrest was the result of an investigation conducted by the Insurance Frauds Bureau, the State Insurance Fund and the Workers’ Compensation Board’s Office of the Fraud Inspector General.
- PROOF IN SURVEILLANCE
Arrested on 2/21/12
Charged with violation of Section 114.1 of the Workers’ Compensation Law
The defendant in this case began collecting workers’ compensation benefits following an on-the-job injury. During the benefit period between April 2011 and September 2011, he submitted numerous Work Activity Reports to the State Insurance Fund stating that he was not employed in any capacity. However, surveillance conducted during an investigation by the Insurance Frauds Bureau revealed that he was working as a mechanic’s helper at a local garage. Investigators contacted the owner of the garage who provided a signed statement confirming that the defendant was an employee. As a result of the fraud, the defendant collected $6,832 in benefits to which he was not entitled.
- COUNTERFEITING SCHEME
Arrested on 2/17 and 2/21/12
Charged with criminal possession of a forged instrument in the 2nd degree
Two upstate defendants were arrested – one on 2/17/12, the second on 2/21/12 – following the investigation of a check-cashing, counterfeiting scheme at a Schenectady location of a super market chain operating in upstate New York. This ongoing investigation is being conducted by the Schenectady Police Department and the Secret Service with the assistance of the Insurance Frauds Bureau. Additional arrests are anticipated.
- LPN COLLECTS WHILE WORKING
Arrested on 2/16/12
Charged with insurance fraud in the 2nd degree, falsifying business records in the 1st degree and violation of Section 114.1 of the Workers’ Compensation Law
An upstate licensed practical nurse (LPN) reported a back injury on 10/29/05 while employed at a local hospital and began collecting workers’ compensation benefits. During the benefit period, she submitted documentation to her insurer stating that her injury left her unable to work in any capacity. However, an investigation by the Insurance Frauds Bureau, the Workers’ Compensation Board’s Office of the Fraud Inspector General and the Syracuse Police Department uncovered evidence that from 2006 to 2010 she was employed as an LPN at two other medical facilities in the Central New York area. As a result of the fraud, she collected $58,144 in benefits to which she was not entitled.
- TASK FORCE SUCCESS
Arrested on 2/16/12
Charged with criminal sale of a controlled substance in the 3rd degree
An investigation by the Drug Enforcement Administration Tactical Diversion Task Force, of which the Insurance Frauds Bureau is a member, led to the arrest of five suspects charged with criminal sale of a controlled substance. The Task Force investigates organized drug diversion schemes, “doctor shopping” and forgery of controlled substance prescriptions.
- DRUG DIVERSION
Arrested on 2/15/12
Charged with health care fraud
An investigation by the Insurance Frauds Bureau and Department of Health and Human Services resulted in the arrest of a sixth suspect in a scheme that involves the filling and sale of prescriptions for controlled substances. This investigation is ongoing.
- STING OPERATION NETS THIEF
Arrested on 2/3/12
Charged with criminal possession of stolen property in the 3rd degree
The suspect in this case allegedly confiscated a 2008 Honda without the consent of the owner. He then sold it to an undercover police officer at a sting location set up by the Suffolk County DA’s Office. An investigation by the Insurance Frauds Bureau and the Suffolk County DA’s Insurance Crime Bureau resulted in the arrest.
- YESHIVA HANDYMAN
Arrested on 2/2/12
Charged with grand larceny in the 2nd degree
Following a job-related injury that occurred in 1993, a Queens man began collecting workers’ compensation benefits. During the benefit period, he reported to the State Insurance Fund on numerous occasions that he was not working. However, investigators learned that he had been working as a custodian/handyman at a Yeshiva in Brooklyn since 2000. As a result, he fraudulently collected $80,287 in benefits. An investigation by the Insurance Frauds Bureau and the State Insurance Fund led to his arrest.
- INVESTIGATION YIELDS 66TH DEFENDANT
Arrested on 2/2/12
Charged with insurance fraud, grand larceny and falsifying business records
An ongoing investigation into no-fault fraud by the Insurance Frauds Bureau and the NYPD’s Fraudulent Accident Investigations Squad led to the arrest of a Brooklyn man who allegedly added his name to a Police Accident Report and then was treated for nonexistent injuries under his no-fault coverage. Hartford Insurance Company paid out $1,000 on his fraudulent claim. He is the 66th defendant to be arrested in this long-term investigation.
- “STOLEN” CAR TURNS UP AT AIRPORT
Arrested on 2/2/12
Charged with insurance fraud
A Staten Island man reported to the NYPD and to GEICO Insurance Company that his 2008 Nissan had been stolen and filed a claim for the loss. However, the Port Authority Police Department recovered the car in the long-term parking area of Newark Airport and notified the NYPD. When the suspect was arrested, he provided a statement to investigators admitting that he had driven his car to the airport and parked it. He then took a cab home and reported the “theft” to the Police. The Insurance Frauds Bureau collaborated with the NYPD’s Auto Crime Division in the investigation that led to his arrest.
- BOGUS CHECKS CREATED
Arrested on 2/1/12
Charged with forgery in the 2nd degree, criminal possession of stolen property in the 5th degree and petit larceny
An investigation by the Insurance Frauds Bureau and the State Insurance Fund resulted in the arrest of the defendant in this case who had collected workers’ compensation benefits from 5/26/06 to 8/2/07. He had a facsimile copy of one of the checks he had received during that previous benefit period and used that facsimile copy to create two “new” checks in the amounts of $950 and $975 by changing the check numbers, the dates and the original amounts. He then cashed the forged checks at two separate check-cashing businesses.
- PRIOR SUPPLEMENTS
January 2012
- OWNER GIVE-UP
Arrested on 1/31/12
Charged with insurance fraud in the 3rd degree, attempted grand larceny in the 4th degree and offering a false written statement
A Staten Island woman reported to the NYPD that her 2006 Honda had been stolen and filed a claim with GEICO Insurance Company for the loss. She and her boyfriend submitted a “Supplemental Statement from Last Driver of Vehicle” reporting that the last time they were in custody of the vehicle was 9/25/11 at 5:00 p.m. They claimed that they discovered the car missing on 9/28/11 at 2:00 p.m. However, records provided by the FDNY Fire Marshals disclosed that FDNY Units responded to a passenger vehicle fire on 9/21/11 at 8:21 p.m. That vehicle was identified as the 2006 Honda falsely reported stolen by the defendants. Their arrest was the result of an investigation by the Insurance Frauds Bureau and the FDNY.
- CHANGE OF HANDS
Arrested on 1/31/12
Charged with insurance fraud and grand larceny
The defendant in this case reported to the NYPD and GEICO Insurance Company that her 2010 Lexus had been stolen. An investigation by the Insurance Frauds Bureau and the NYPD’s Auto Crime Division found evidence that she was behind on her premium payments and the car’s insurance policy was about to lapse. However, when her former boyfriend learned that insurance coverage was in jeopardy, he made the back payments. He then met with the lien holder with proof that payments on the car were current and obtained a “Power of Attorney” form that authorized him to register the car in his name. The defendant had full knowledge of these facts when she falsely reported the car stolen.
- ALTERED MEDICAL REPORT
Arrested on 1/31/12
Charged with offering a false instrument for filing in the 1st degree
A Long Island man incurred a back injury while employed by the Town of Islip and was required to periodically see a doctor regarding his fitness to return to work. However, an investigation by the Insurance Frauds Bureau and the Suffolk County DA’s Insurance Crime Bureau revealed that following one such visit, he altered a medical report that indicated “light duty work” to read “no light duty work.”
- DRUG DIVERSION 2
Arrested on 1/27/12
Charged with criminal possession of a controlled substance and criminal sale of a controlled substance
A six-month investigation by the Orleans County Drug Task Force resulted in the arrest of five defendants charged with multiple counts of criminal possession of a controlled substance and criminal sale of a controlled substance. The Insurance Frauds Bureau assisted the Task Force in this investigation by obtaining insurance records/depositions and conducting interviews. One of the defendants filed a claim with Travelers Insurance Company following a work-related back injury he sustained in October 1998. As part of his medical treatment, he obtained prescriptions for controlled substances which were paid for by Travelers. On three occasions, this defendant allegedly sold narcotics to undercover officers. Following his arrest, several arrest warrants were issued for four other defendants who were participants in this drug ring and were accused of obtaining narcotics from defendant #1 and selling them. Additional charges are pending.
- NO CASH PAID
Arrested on 1/27/12
Charged with insurance fraud in the 4th degree and falsifying business records in the 1st degree
The defendant in this case was involved in an auto accident on 1/24/11 and was given prescription pain medication under her no-fault coverage. During the benefit period, she submitted numerous invoices for the medication for which she claimed to have paid a total of $1,072.81 in cash. However, an investigation by the Insurance Frauds Bureau and the Lowville Police Department found evidence that Medicaid had actually paid for the prescriptions with no out-of-pocket cost to the defendant.
- NO COVERAGE IN PLACE
Arrested on 1/27/12
Charged with offering a false instrument for filing in the 1st degree and violation of Section 114 of the Workers’ Compensation Law
A Schenectady contractor filed a worker’ compensation exemption form indicating that he had no employees on his payroll and therefore did not require insurance coverage for a contracting job. However, an investigation by the Insurance Frauds Bureau and Workers’ Compensation Board’s Office of the Fraud Inspector General disclosed that he had four employees on his payroll who were working without the insurance coverage required by New York State law.
- COSTS MORE THAN TRIPLED
Arrested on 1/21/12
Charged with insurance fraud in the 4th degree
A Suffolk County woman filed a claim with Global Liberty Insurance Company for damage to the roof of her home. In support of the claim, she submitted a receipt for repair of the roof. However, an investigation by the Insurance Frauds Bureau and the Suffolk County DA’s Insurance Crime Bureau uncovered evidence indicating that she had altered the receipt, changing the repair cost from $850 to $3,150.
