New York Investigation Leads to Fraud Arrests

May 21, 2001

Sweeps in New York City and upstate New York led to the arrests of 39 individuals for a variety of crimes related to insurance fraud. The auto fraud round-up in the metropolitan area has led to 18 arrests, while 21 individuals are being rounded up in Onondaga County for a variety of alleged insurance fraud schemes.

The 21 arrests in upstate are targeting various crimes including perjury, stolen property, no-fault insurance fraud and workers’ compensation fraud. The allegations claim that 14 of the 21 individuals will be charged with workers’ compensation fraud in their role of systematically defrauding the insurance system varying from receiving benefits for which they were not entitled, to fraudulently representing that they qualified for insurance coverage when they didn’t, and/or fraudulently stating they were covered by insurance when it turns out they were not.

In the city area, 18 individuals were taken into custody in a sweep involving 11 auto body shops in Kings, Queens, Nassau and Richmond Counties. The allegations state that the defendants stole vehicles, took apart the vehicles, then sold the parts to customers, and in some cases, pass the parts off as new ones. Three more arrests are expected in the case.

The arrests come right after a major auto insurance policy initiative sought recently by Governor George Pataki. The package is looked at as the most thorough overhaul of auto insurance in three decades.

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