Arrests and Convictions: First Quarter, 2002
The number of arrests resulting from Frauds Bureau
investigations totaled 259 for the January March 2004 period,
compared with 244 over the same period the year before.
Among those arrested during the first quarter of 2004
was a now-suspended New York City Police Officer for submitting allegedly
fraudulent receipts in support of a $10,000 claim for electronic equipment
that he reported stolen from his home. The Frauds Bureau and the Pelham
Manor Police Department pooled resources in this investigation.
In addition, an investigation by the Frauds Bureau
and the Attorney Generals Office led to a 100-count indictment
charging 11 people and 7 corporations with engaging in a far-reaching
no-fault scheme to defraud insurance carriers of an estimated $1 million.
Those arrested included five health care providers, two attorneys
and a network of recruiters.
An investigation by the Frauds Bureau, the State Insurance
Fund, the Workers Compensation Boards Fraud Inspector
Generals Office and the Monroe County DAs Office led to
the arrest of a Brockport insurance agent on 50 counts of insurance
fraud. His license has been suspended pending a hearing. The defendant
was charged with issuing fraudulent certificates of workers
compensation insurance to self-employed persons as evidence of coverage
for potential employers. As a result, businesses employing these individuals
were improperly charged workers compensation rates based on
this fraudulent information. In other cases, he allegedly took workers
compensation premiums from prospective insureds but never placed the
coverage. He was arrested in September 2003 on similar charges.
The number of criminal convictions obtained by prosecutors
in Frauds Bureau cases totaled 101 for the first three months of 2004,
versus 104 for the same period a year ago.
The Frauds Bureau received 7,630 reports of suspected
insurance fraud during the first quarter of 2004, up from 7,205 for
the same period in 2003 and 6,326 in 2002. Implementing a Web-based
reporting system is one of the Bureaus highest priorities and
progress continues in this initiative.