N.J. Man Pleads Guilty to Insurance Fraud Over Damage Done to Car

A New Jersey man has admitted that he sought more than $15,000 from his insurance company for damage done to his car before his policy took effect and for personal items he claimed were stolen.

Derrick Smith of Newark, New Jersey, pleaded guilty Monday to insurance fraud. He now faces a three-year prison term.

Smith sought $13,629 from his insurer for damage that he said occurred during a five-day period in December 2013 when his car had been stolen. He also claimed a $1,700 watch and earrings worth $1,000 were in the vehicle.

Smith later told police he had found his car, but said it had extensive damage and his watch and earrings were gone.

The state’s Insurance Fraud Prosecutor’s Office determined Smith caused the damage days before he reported his car stolen, when he struck a parked car in Newark.

Topics Auto Fraud New Jersey