Tuesday, June 6, 2017

A.G. Schneiderman Announces Take Down Of New York City Insurance Fraud Ring

Investigation Charges Six-Person Ring With Stealing Over $120k From Auto Insurance Carriers 
If Convicted, Alleged Ringleader Carlington Haye Faces 5 To 15 Years In Prison; Other Defendants Could Face 2 1/3 To 7 Years
Schneiderman: When A Few People Organize To Commit Insurance Fraud, All New York Consumers Pay The Cost 
  Attorney General Eric T. Schneiderman today announced a 42-count indictment, charging six individuals for their participation in an auto insurance fraud scheme in which the defendants allegedly cheated insurance carriers out of over $120,000 by submitting fake property damage claims for high-end vehicles. Four of the charged defendants, including ringleader Carlington Haye, were arrested and arraigned today in Kings County Supreme Court.          
“When a few people organize to commit insurance fraud, all New York consumers pay the cost,” said Attorney General Schneiderman. “My office remains committed to rooting out fraud of any kind and this is no exception.”
According to the Attorney General’s indictment, between January 2014 and September 2015, members of this insurance fraud ring allegedly conspired to submit 11 fake property damage claims, which included multiple false misrepresentations, including the manner in which car accidents and purported damages occurred.  The defendants also allegedly resubmitted claims for the same vehicles with preexisting damages multiple times. In order to maximize insurance payments, the defendants utilized high-end vehicles, including a Lexus, BMW, Audi, Mercedes, and Bentley. The defendants received payments ranging from $5,000 to over $20,000 for their property damage claims.
In addition, prosecutors allege that in three of the charged claims, the defendants used the stolen identity of a United States serviceman.  As a result of their alleged conspiracy, the defendants fraudulently obtained a total of over $120,000 in insurance payments for their counterfeit claims and cashed insurance checks at two Pay-O-Matic check cashing branches in Kings County, New York. 
The Attorney General’s 42-count indictment, unsealed today in Kings County Supreme Court, charges the defendants with Insurance Fraud in the Second Degree (a class C felony), Insurance Fraud in the Third Degree (a class D felony), Identity Theft in First Degree (a class D felony), Grand Larceny in the Third Degree (a class D felony), Falsifying Business Records in the First Degree (a class E felony), Scheme to Defraud in the First Degree (a class E felony) and Conspiracy in the Fifth Degree (a class A misdemeanor).  The following six defendants are charged with multiple felonies:
  • Carlington Haye, age 35, of Kings County, New York  
  • Mkada Beach, age 36, of Kings County, New York
  • Omari Brown., age 22, of Kings County, New York
  • Keon Cole, age 33, of Kings County, New York
  • Dexter Karl, age 27, of Kings County, New York
  • Theresa King, age 26, of Kings County, New York 
Defendants Carlington Haye, Mkada Beach, Omari Brown and Theresa King were arraigned today in Kings County Supreme Court before the Justice Danny Chun. Defendant Haye was remanded into custody pending a bail application; bail was set in the amount of $50,000 bond or $25,000 cash for defendant King; and defendants Beach and Brown were released on their own recognizance. 
If convicted of the top count charged, ringleader Carlington Haye will face up to 5 to 15 years in prison, and the remaining defendants face up to 2 1/3 to 7 years in prison.
The charges against the defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty in a court of law. 
These arrests are the culmination of a long-term investigation conducted by Attorney General Schneiderman's Automobile Insurance Fraud Unit. The Attorney General thanks the National Insurance Crime Bureau, New York State Department of Financial Services, New York State Department of Motor Vehicles, New York City Police Department, New York City Department of Finance Office of the City Register, and the Florida Highway Safety and Motor Vehicles for their invaluable assistance in this case.  The Attorney General also thanks State Farm Insurance Co., GEICO Insurance Co., Nationwide Insurance Co., United Services Automobile Association, and Progressive Insurance for their valuable assistance. 

No comments:

Post a Comment