First Guilty Plea and Prison Sentence in NY Auto Fraud Investigation

April 19, 2002

Arthur Krapf of Lindenhurst received a two to six year prison sentence after he pled guilty to one count of “Enterprise Corruption” following an investigation by the Suffolk County District Attorney’s Insurance Crime Unit.

Krapf’s case is the first involving some 250 corporations and individuals who have been charged with fraud, grand larceny, forgery and other related offenses involving filing false claims and medical reports involving staged auto accidents.

The cases comprise the largest single fraud investigation ever undertaken in New York. The DA’s operation involved investigators from the Department Frauds Bureau, prosecutors, detective investigators, and agents from the National Insurance Crime Bureau.

Krapf was involved with several auto body repair shops in Copiague, Deer Park, Lindenhurst and other western Suffolk locations, that participated in a scheme to intentionally damage cars and motorcycles “to fatten claim checks,” according to the indictment.

Commenting on the sentence NYSID Superintendent Gregory V. Serio stated that “Arresting, prosecuting, convicting and sentencing insurance fraudsters is the best way to effectively reduce insurance fraud. The Department’s successful collaboration with the Suffolk DA’s Insurance Crime Unit is taking these crooks off the streets and protecting New York’s honest, premium- paying consumers. The sentencing of Mr. Krapf sends a clear message: if you commit insurance fraud, we will arrest and prosecute you to the fullest extent of the law.”

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