New York State

Insurance

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Contact:
Public Affairs
(212) 480-5262
www.ins.state.ny.us

James J. Wrynn    Superintendent of Insurance    25 Beaver Street  New York, N.Y. 10004

ISSUED 3/22/2010 FOR IMMEDIATE RELEASE

24% JUMP IN CONVICTIONS AS INSURANCE FRAUD TRENDS UPWARD

The owner of a Westchester County pizzeria, a Monticello insurance underwriter, a Monroe County podiatrist and an Erie County woman who bought insurance to fix a car that had already been wrecked all shared a common predicament in 2009 – they were convicted of insurance fraud.

The cases are among those noted in the newly released New York State Insurance Department’s Frauds Bureau Annual Report for 2009, which documents a 24 percent increase in insurance fraud-related convictions.

“Insurance fraud is on the upswing and fighting this crime is among the Insurance Department’s highest priorities. The Department is committed to working closely with local authorities to investigate and prosecute these cases. Insurance fraud is serious because it unnecessarily drives up the cost of insurance for honest New Yorkers,” Insurance Superintendent James Wrynn said.

The annual report notes sharp increases in virtually all of the areas under the Bureau’s responsibility. For example:

The Bureau investigates a range of insurance-related crimes. These include complex investigations like those involving the Monticello underwriter, who was convicted of stealing $22.5 million in premiums, or the Monroe County podiatrist convicted of submitting $750,000 in fraudulent medical billings for treatments he never provided to nursing home patients.

Other cases involve those like the pizza parlor owner who was assessed $97,000 after failing to provide workers’ compensation coverage for his employees, or the Erie County case, where a woman tried to buy insurance to cover car damages that had already occurred.

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