A Bronx County, N.Y., man has been arrested and arraigned on a felony complaint for an alleged insurance fraud scheme.
Barrington Mayne, who is not an insurance broker, allegedly used his position and contacts at various car dealerships throughout Brooklyn, N.Y., to lead car buyers to believe he was an insurance broker capable of obtaining car insurance.
Mayne allegedly stole thousands of dollars from victims who were tricked into paying him insurance premiums for purported insurance policies. Mayne is charged with one count of scheme to defraud in the first degree and two counts of grand larceny in the fourth degree.
“This defendant allegedly victimized unsuspecting consumers by fraudulently posing as a licensed insurance broker in an effort to line his pockets with thousands of dollars in ill-gotten gains,” said Acting New York Department of Financial Services (DFS) Superintendent Linda A. Lacewell in a DFS press release.
In New York state, insurance agents and brokers are licensed and regulated by DFS. According to the felony complaint, DFS records indicate that Mayne was not, and never has been, licensed in any capacity under any section of the New York Insurance Law.
According to the felony complaint and statements made by the prosecutor at arraignment, Mayne allegedly demanded thousands of dollars from victims and then led them to believe they had purchased automobile insurance policies when it was actually a scheme to steal their money.
Specifically, Mayne allegedly took money from victims for purported insurance premium payments, but instead of paying insurance carriers, Mayne would obtain temporary insurance cards using fictitious banking information and allow the policies to cancel shortly after for lack of payment.
If convicted of the top counts charged, Mayne faces up to four years in prison.
“All New Yorkers pay a price for insurance fraud, which drives up premiums across the board,” said New York Attorney General Letitia James in the release. “This alleged scheme led unsuspecting customers to believe that they had legitimate auto insurance, only to later find their policies suddenly cancelled. My office will prosecute anyone who breaks the law to take advantage of consumers for personal profit.”
Defendant Mayne was arraigned in Kings County Criminal Court and was released on his own recognizance. He is next scheduled to appear in court on May 30, 2019. The charges are merely accusations, and the defendant is presumed innocent unless proven guilty in a court of law.
Source: New York State Department of Financial Services
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