A.G. Schneiderman Announces Arrests Of Six Individuals Charged With Auto Insurance Fraud
“Operation Crash & Buy” Results in Charges Against Defendants In Four Counties For Allegedly Purchasing Insurance After Their Vehicles Were Damaged Or Stolen And Then Making False Claims
Schneiderman: False Claims Like These Affect Hardworking New York Residents By Driving Up The Cost Of Auto Insurance
NEW YORK—Attorney General Eric T. Schneiderman announced today the arrests of six individuals for allegedly purchasing automobile insurance policies after their vehicles had already sustained damage or been stolen, and then falsifying the dates of the incidents in claims submitted to their insurance carriers. The defendants were arrested yesterday and today on felony complaints filed in Queens, Kings, Nassau and Suffolk Counties.
The charges are the result of “Operation Crash & Buy,” a pro-active investigation initiated by the Attorney General’s Auto Insurance Fraud Unit (“AIFU”) in conjunction with the New York State Department of Financial Service’s Criminal Investigations Unit, Insurance Frauds Bureau and the National Insurance Crime Bureau. The joint investigation targeted fraudulent claims made to auto insurance carriers for damage and thefts that occurred before the policy effective dates.
“False claims affect hardworking New York residents by driving up the cost of auto insurance,” Attorney General Schneiderman said. “Insurance fraud is a crime, and anyone thinking about making a false insurance claim should consider the consequences of their actions. My office will remain vigilant in identifying and prosecuting these cases.”
“Scams like those allegedly uncovered by this joint investigation needlessly drive up auto insurance premiums for innocent New Yorkers,” said Maria T. Vullo, Superintendent of Financial Services. “This case should serve as a warning that unscrupulous individuals attempting to game the system will be caught and prosecuted.”
“The National Insurance Crime Bureau would like to applaud the staff of the New York State Attorney General’s Office for their continued efforts in addressing insurance fraud in New York State,” said Kevin Gallagher, Regional Director of the Northeast Region of the National Insurance Crime Bureau. “The cost of insurance fraud is shared by all consumers, and this investigation sends a strong message to others who may be contemplating engaging in insurance fraud. We look forward to our continued partnership in combatting insurance fraud for all New Yorkers.”
According to the Attorney General’s felony complaints, each of the defendants owned a vehicle that had been either damaged or reported stolen prior to being covered by insurance. The defendants allegedly purchased collision or comprehensive insurance coverage after the fact, and then filed false claims with the insurance companies stating that the incidents occurred after the policies were in effect.
The individuals charged include:
Curlan Peters, 29, of Brooklyn, who allegedly was involved in car accident in his 2010 Nissan on March 7, 2015, added collision coverage five days later, and then falsely submitted a property damage claim for over $6,000 in which he stated that the accident occurred on March 24, 2015. When his first claim was denied, Peters allegedly purchased coverage from a second insurance company in May 2015 and then falsely submitted another claim for the same damage in July 2015. Peters is charged in Kings County with two counts of Insurance Fraud in the Third Degree, a class D felony, one count of Grand Larceny in the Third Degree, a class D felony, one count of Insurance Fraud in the Fourth Degree, a class E felony, one count of Attempted Grand Larceny in the Third Degree, a class E felony, three counts of Falsifying Business Records in the First Degree, a class E felony, and one count of Grand Larceny in the Fourth Degree, a class E felony.
Shareen McIntosh, 31, of Brooklyn, who allegedly was involved in a car accident in her 2006 Porsche Cayenne on March 28, 2015, added collision coverage minutes after the accident, then claimed that the accident occurred hours later. McIntosh is charged in Kings County with one count of Falsifying Business Records in the First Degree, a class E felony, and one count of Insurance Fraud in the Fifth Degree, a class A misdemeanor.
Jacqueline Cadeau, 26, of Hempstead, who allegedly was involved in a car accident in her 2012 Honda Civic on March 22, 2015, purchased comprehensive and collision coverage in in April 2015, and then submitted a claim stating that the damage had occurred on April 21, 2015. Cadeau is charged in Nassau County with one count of Falsifying Business Records in the First Degree, a class E felony, and one count of Insurance Fraud in the Fifth Degree, a class A misdemeanor.
Shimon Schmulian, 25, of Great Neck, who allegedly damaged his 2014 BMW after hitting a pothole in February 2014, thereafter changed his deductible from $1,000 to $500, and then submitted a claim in which he stated that the damage occurred the following day. Schumulian is charged in Nassau County with one count of Falsifying Business Records in the First Degree, a class E felony, and one count of Insurance Fraud in the Fifth Degree, a class A misdemeanor.
Markapril Dungca, 27, of Queens Village, who allegedly purchased collision coverage on May 14, 2015 after his 2007 Toyota Camry was damaged on the street and then made a property damage claim. Dungca is charged in Queens County with one count of Falsifying Business Records in the First Degree, a class E felony, and one count of Insurance Fraud in the Fifth Degree, a class A misdemeanor.
Debra Spraggins, 44, of Selden, who allegedly added comprehensive coverage to her 2005 Dodge Neon in August 2014 after it sustained water damage, and then made a claim for over $2,900 in which she stated her car was flooded five days after the policy effective date. Spraggins is charged in Suffolk County with one count of Insurance Fraud in the Fourth Degree, a class E felony, and one count of Falsifying Business Records in the First Degree, a class E felony.
The Attorney General thanked the New York State Department of Financial Services, the National Insurance Crime Bureau, GEICO, Progressive, USAA and 21st Century for their valuable assistance in this investigation.
The charges against the defendants are merely accusations, and the defendants are presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant Attorney General Wesley Cheng with the assistance of Supervising Legal Analyst Paul Strocko and Legal Analyst Yuriy Kurbatov of the Criminal Enforcement and Financial Crimes Bureau’s Auto Insurance Fraud Unit. The Auto Insurance Fraud Unit is led by Chief Joseph D’Arrigo. The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Gary T. Fishman and Deputy Bureau Chief Stephanie Swenton. The Division of Criminal Justice is led by Executive Deputy Attorney General Kelly Donovan.
The Attorney General's investigation was conducted by Investigators Severino Concordia and Brian Maher of the Auto Insurance Fraud Unit, under the direction of Supervising Investigators Edward Keegan and Natalie Shifrin and Deputy Chief Leonard D'Alessandro. The Investigations Bureau is led by Chief Dominick Zarrella.