N.Y. Claims Adjusters Indicted on Fraud, Other Charges (Revision)

May 18, 2004

Queens (N.Y.) District Attorney Richard Brown, joined by Police Commissioner Raymond Kelly and State Insurance Department Superintendent Gregory Serio, announced recently that three auto insurance claims' adjusters from Nassau County have been indicted on insurance fraud and other charges and accused of unlawfully receiving illicit payments up to $200 in return for submitting to three insurance carriers enhanced vehicle damage and repair estimates totaling nearly $24,000.

The District Attorney said that the defendants have been charged in three separate indictments that accuse them during a four-month period between December 2002 and March 2003 of receiving illicit payments ranging from $50 to $200 from repair shop owners in Queens County in return for submitting enhanced estimates totaling $23,957 for repairs on vehicles damaged in collisions to three insurance carriers - Tri State Consumer Insurance Company, Eveready Insurance Company and Empire Insurance Company.

The District Attorney reported that the charges are the result of an undercover operation, the latest in a series of undercover operations in Queens County targeting auto insurance fraud that began in 1991. The undercover investigation was conducted by the New York City Police Department's Organized Crime Control Bureau Auto Crime Division, the District Attorney's Economic Crimes Bureau and the New York State Insurance Department with the assistance of the insurance industry.

Brown identified the defendants -- all Nassau County residents - as Gabe Deri, 50, of New Hyde Park, an independent adjuster employed by Tri State consumer Insurance Company; Carl Iacona, 51, of Massapequa, an independent adjuster for AAB Services Inc. in Williston Park, New York and Craig Wunderlin, 48, of Huntington, an independent adjuster employed by Metro Claims Service Inc. The defendants have been variously charged with Insurance Fraud in the Third and Fourth Degree; Commercial Bribe Receiving in the Second Degree and Falsifying Business Records in the First Degree and face up to seven years in prison if convicted.

According to the District Attorney, the investigation began in January 2003 when NYPD OCCB Auto Crime Division detectives received information about alleged wrongdoing involving independent insurance adjusters.

Brown said that the three defendants have been charged with receiving the illicit payments ranging from $50 to $200 from auto body repair shops in Queens for submitting to the insurance carriers enhanced damage and repair estimates totaling $29,956 involving four heavily damaged vehicles.

The District Attorney said that defendant Deri has been charged with receiving two illicit payments: a $50 payment on Dec. 12, 2002 to submit an allegedly enhanced $1,714 damage and repair estimate to Tri State Consumer Insurance Company which then paid the claim, and a $150 payment on April 2, 2003 to submit an allegedly enhanced $8,319 damage and repair estimate to Tri State Consumer Insurance Company which then paid the claim.

The District Attorney said that defendant Iacona has been charged with receiving a single illicit payment of $100 on January 7, 2003 to submit an allegedly enhanced $4,487 damage and repair estimate to Empire Insurance Company which then paid the claim.

Brown said that defendant Wunderlin has been charged with receiving a single illicit payment of $200 on March 11, 2003 to submit an allegedly enhanced $9,436 damage and repair estimate to Eveready Insurance Company which then paid the claim.

The defendants entered pleas of not guilty at arraignment in Queens Supreme Court before Justice James Griffin who released them in their own recognizance and set a return date of June 1, 2004.

The investigation was conducted by Detective David Moore of the NYPD OCCB Auto Crime Division under the supervision of Deputy Inspector Howard Lawrence, Captain Michael Byrne, Lieutenant Gene Borelli and Sergeant George Nash and the overall supervision of Chief Douglas Zeigler, Organized Crime Control Bureau and Senior Investigator Hugh Brickley of the New York State Insurance Frauds Bureau under the supervision of Supervising Investigator John McDonald and the overall supervision of Charles Bardong, Bureau Chief.

District Attorney Brown expressed his appreciation to Police Commissioner Kelley and New York State Department of Insurance Superintendent Serio for their cooperation and support in the investigation and to Crum & Forster Insurance Company and Progressive Insurance Company for their assistance.

Editor's note: This is a revised version of a report that ran earlier this month on both insurancejournal.com and claimsguides.com. Due to updated information provided by the Queens D.A., it was determined that Iacona was never a part owner of AAB Services Inc.