Organized Crime Operation Allegedly Maintained Violent Monopoly in Manhattan, Bronx, Queens,
Brooklyn, and Long Island
Manhattan District Attorney Cyrus R. Vance, Jr., New York City Police Commissioner
James P. O’Neill, and New York City Department of Investigation (“DOI”) Commissioner
Mark G. Peters today announced the indictment of multiple individuals and companies for
maintaining an unlawful monopoly on the towing industry in New York City through an
elaborate series of schemes involving shell companies, insurance fraud, bid rigging, and other
crimes. Seventeen individuals and ten companies are charged in a series of New York State
Supreme Court indictments with Enterprise Corruption, Scheme to Defraud in the First
Degree, Conspiracy in the Fourth Degree, and Offering a False Instrument for Filing in the
First Degree, among other charges.
[1]
“If you were involved in a collision between June 2015 and December 2017 and received
assistance from a tow company, chances are, you were an unwitting customer of an illegal
enterprise that dominated New York City’s towing industry until our takedown today,” said
Manhattan District Attorney Cyrus R. Vance, Jr. “In order to ensure fair competition and
encourage entrepreneurs to set up shop here in the City, we cannot allow this type of
systemic fraud and abuse to persist within any industry. As alleged in this case, the
defendants worked in concert to maintain a violent monopoly on the city’s towing business,
in the kind of industrywide racket that harkens back to an earlier era. The City may have
changed, but in certain trades, pervasive corruption still exists, and I thank our partners,
including DOI and the NYPD, for their partnership and assistance with this investigation.”
DOI Commissioner Mark G. Peters said: “These defendants exploited the tow truck
licensing procedures of New York City to advance their fraud, according to the charges.
Intentionally fabricating information to the City and corrupting its procedures is a crime. In
partnership, the Manhattan District Attorney’s Office, NYPD, and DOI will work together
to root out corruption and strengthen the procedures governing this industry.”
New York City Sheriff Joseph Fucito said: “It is important for our citizens to have
confidence in the integrity of the towing industry that provides so many public safety
services for our roadways. The Department of Finance, Office of City Sheriff stands with
our partners, the Manhattan District Attorney’s Office, and NYPD to investigate and
uncover both criminal activity and unpaid tax liabilities.”
Regional Director of the Northeast Region of the NICB Kevin Gallagher said: “The
National Insurance Crime Bureau would like to applaud the Manhattan District Attorney’s
Office and the New York City Police Department for their continued efforts in addressing
insurance fraud and related crime in New York. The cost of insurance fraud and related
crimes is shared by all consumers and it is important that we identify and prosecute those
responsible for raising our insurance expenses. This investigation sends a strong message to
others who may be contemplating engaging in insurance related crimes. We look forward to
our continued partnership with the NYPD and Manhattan District Attorney’s Office in
combating insurance related crimes for all New Yorkers.”
The indictments are the result of a long-term, joint investigation into illegal conduct and
fraud in the towing industry by the Manhattan District Attorney’s Office’s Rackets Bureau,
NYPD Criminal Enterprise Investigations Section (“CEIS”), and DOI, with additional
assistance by the NYC Sheriff’s Office, New York State Department of Taxation and
Finance, and National Insurance Crime Bureau (“NICB”).
The indicted individuals include: JAIME BAUTISTA, JOSEPH CASTILLO, DAVID
CONTI, GEORGE COPPOLINO, CARL FAVA, JESUS GARCIA, DOMENICK
GENISE, MIGUEL HERNANDEZ, DAUNTE HUFF, MICHAEL MAZZIO,
ANGELO MAZZIO, SALVATORE MAZZIO, EDWIN ROIG, DANIEL
STEININGER, KAREN STEININGER, NORMAN TEITLER, and MAURECE
WIMBERLY. The indicted companies include: APPLE TOWING, INC., AUTHORIZED
AUTO BODY, INC., BROADWAY CAR SALON, INC., D&D’S IMPRESSIVE AUTO
COLLISION, INC., FACTORY PLUS COLLISION, INC., MIKE’S HEAVY DUTY
TOWING, INC., RJN FAMILY ENTERPRISES, INC. D/B/A TABS CONSULTING,
INC., SOUTHSIDE COLLISION, INC., SOUTHSIDE COLLISION AND TOWING,
INC., and TOW-ARRIFIC, INC.
Daniel Steininger’s Criminal Enterprise
DANIEL STEININGER, 44, managed a criminal enterprise (the “STEININGER
ENTERPRISE”) composed of individuals and corporations that worked together to restrict
competition in the towing industry in New York City, maximize auto body work at their
shops by fraudulently acquiring tow truck companies and their licenses, and engage in
insurance fraud by inflating insurance claims for the work done at the defendants’ auto body
shops. The STEININGER ENTERPRISE also colluded with other towing companies to infiltrate additional towing markets for heavy duty towing and New York City’s arterial
highway towing program.
Citywide Towing Scheme
In New York City, towing businesses are regulated through a series of operating
requirements and service area agreements that include specific licensing rules set out by the
New York City Department of Consumer Affairs (“DCA”), geographic service zones, and
rotation programs called the Direct Accident Response Program (“DARP”) and Rotation
Tow Program (“ROTOW”). Through these programs, the NYPD maintains a rotating roster
of participating companies that are summoned to locations throughout the city to remove
disabled vehicles.
According to the indictment and documents filed in court, between June 2015 and
December 2017, STEININGER managed a fraudulent monopoly on the towing industry in
New York City through a coordinated criminal conspiracy involving his co-defendants, their
companies, and the manipulation of towing industry regulations.
For example, STEININGER, the owner of D&D’S IMPRESSIVE AUTO COLLISION,
INC. (“D&D AUTO”), a towing company and auto body repair facility, employed the
assistance of NORMAN TEITLER, 74, who acted as a broker and helped the defendant
purchase additional towing companies. STEININGER, however, failed to notify DCA
about the acquisitions, which would have violated an ownership transfer rule known as “the
10% rule” and require the defendant’s new companies to hold towing licenses for a period
of at least one year before becoming re-eligible for DARP participation. Consequently, by
purchasing the companies without DCA’s knowledge, STEININGER was able to acquire
multiple DARP licenses without qualifying for them, which led to the companies—all of
which were controlled by STEININGER—being placed on the same rotating collision
response rosters multiple times in different geographic zones.
These companies included TOW-ARRIFIC, INC., which listed STEININGER’s sister,
KAREN STEININGER, 38, as president of the company, as well as SOUTHSIDE
COLLISION AND TOWING, INC., and SOUTHSIDE COLLISION, INC., which were
registered to DAVID CONTI, 44. Both of the tow truck companies were also associated
with a number of auto body repair facilities that functioned as fronts within the
STEININGER ENTERPRISE’s organization, including AUTHORIZED AUTO BODY,
INC., BROADWAY CAR SALON, INC., and FACTORY PLUS COLLISION, INC. As
an additional requirement for participation in DARP and ROTOW programs, towing
companies must maintain a licensed shop or storage yard within the designated service zone.
DAUNTE HUFF, 40, was tasked with ensuring that STEININGER’s various shell
companies passed inspections, when in reality, many of these locations lacked staffing,
business records, or any of the other statutory requirements for storing vehicles.
Tow truck drivers who were part of the STEININGER ENTERPRISE also disregarded the
rotation programs altogether and engaged in a practice known as “chasing” by monitoring
police radio transmissions, identifying collision sites, and racing to the incident location to
secure jobs ahead of competitors and before a responding NYPD officer could summon a
DARP company to the scene. Occasionally, competitors arrived at a location only to find that one of STEININGER’s associates was already soliciting business from a potential
customer, leading to situations in which conflict, violence, and retribution took place.
STEININGER encouraged his drivers to exert their authority in geographic areas controlled
by his companies and instructed drivers to “show some force” and “cause a ruckus.” In one
instance, driver JAIME BAUTISTA, 35, assaulted a bystander following an altercation with a
competitor. In other instances, drivers damaged rival vehicles as a warning or form of
retaliation, which was called “blasting” or “booming.”
In addition to geographic service zones, STEININGER, his co-defendants, and their
companies monopolized several types of towing jobs, including large capacity vehicles such
as tractor trailers. Because no DARP-equivalent exists for incidents involving heavy duty
vehicles, chasing is prevalent, and the first company to arrive on scene typically claims the
clean-up and tow job.
Arterial Towing & Bid Rigging
STEININGER and his co-defendants also established a fraudulent monopoly on towing
jobs involving city highways. Under current regulations, only the exclusive permit holder is
allowed to tow a disabled vehicle from a designated highway segment; the contract is not
transferrable and subcontracting is not typically permitted. However, MICHAEL MAZZIO,
49, ANGELO MAZZIO, 53, and SALVATORE MAZZIO, 40, who controlled the permits
for multiple highway segments, subcontracted collision work to companies controlled by
STEININGER and his co-defendants in exchange for a quarterly fee of approximately
$20,000 and a portion of the proceeds from resulting insurance claims. This agreement was
overseen by CARL FAVA, 58, and GEORGE COPPOLINO, 53.
Later, in 2017, the NYPD formally reopened the bidding process and sought applications
from tow truck companies seeking to service multiple highway segments. Working together,
the defendants manipulated the application and bidding process to establish a monopoly on
arterial towing jobs involving city highways.
For example, DANIEL STEININGER and KAREN STEININGER, as well as their
respective companies, D&D AUTO and TOW-ARRIFIC, INC., agreed to submit
“competing” applications for control of the same highway segments in order to increase the
odds that one of their companies would be awarded a contract. TEITLER and his company,
RJN FAMILY ENTERPRISES, INC. d/b/a TABS CONSULTING, INC., also assisted
multiple companies with fraudulent application materials.
Insurance Fraud
As charged in the indictment, between June 2015 and April 2017, auto body shop managers
JOSEPH CASTILLO, 44, MIGUEL HERNANDEZ, 32, EDWIN ROIG, 59, and
MAURECE WIMBERLY, 45, participated in the theft of hundreds of thousands of dollars
from insurance companies under the direction of STEININGER and his co-defendant,
DOMENICK GENISE, 44, who instructed the managers to inflate insurance claims
through fraudulent methods including:
*Charging for additional damage the defendants themselves caused to vehicles after
removing a disabled vehicle from a collision site, a practice known as “damage
enhancement.”
• Claiming to perform repairs that were never made.
• Replacing parts that did not need to be replaced.
• Claiming that vehicles were towed when, in fact, they were not.
• Billing insurance companies for new parts that were actually used parts.
The defendants also fraudulently inflated insurance claims by transporting vehicles directly
to STEININGER’S repair facility, D&D AUTO, from FACTORY PLUS COLLISION,
INC., in order to receive higher claim rates for labor and materials.
Tax Fraud and Money Laundering
STEININGER, GENISE, BAUTISTA, and CONTI also laundered the proceeds obtained
through various schemes by using check cashers to convert insurance claim checks made
payable to their companies. The checks represented millions of dollars in collective insurance
claims. Both STEININGER and GENISE are also charged with falsely filing personal
income tax returns that failed to report this additional income.
The Manhattan District Attorney’s Office’s Asset Forfeiture Unit is also filing a lawsuit
against the indicted defendants seeking the forfeiture of more than $19 million associated
with the alleged scheme.
District Attorney Vance thanked the following organizations and individuals for their
assistance with the investigation: NYPD CEIS; DOI, and in particular, Special Investigator
Anastasia Plakas, First Deputy Inspector General Mary Kozlow, and Inspector General Chin
Ho Cheng (DCA), working under the supervision of Associate Commissioner Andrew
Brunsden, Deputy Commissioner and Chief of Investigations Susan Lambiase, and First
Deputy Commissioner Lesley Brovner; DCA; Geico General Insurance Company;
Progressive Casualty Insurance Company; Allstate Insurance Company; State Farm Mutual
Automobile Company; Liberty Mutual Insurance; and Metropolitan Property & Casualty
Insurance Company.
[1] The charges contained in the indictments are merely allegations, and the defendants are presumed innocent
unless and until proven guilty. All factual recitations are derived from documents filed in court and statements
made on the record in court.
Defendant Information:
DANIEL STEININGER, D.O.B. 12/8/1973 Hempstead, NY
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Criminal Tax Fraud in the Second Degree, a class C felony, 1 count
• Criminal Possession of a Forged Instrument in the Second Degree, a class D felony, 4 counts
• Criminal Tax Fraud in the Third Degree, a class D felony, 2 counts
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 36 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 4 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 4 counts
APPLE TOWING, INC.
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E felony, 2 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
AUTHORIZED AUTO BODY, INC.
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
JAIME BAUTISTA, D.O.B. 9/5/1982 Bronx, NY
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 2 counts
BROADWAY CAR SALON, INC.
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 1 count
JOSEPH CASTILLO, D.O.B. 6/22/1973 Commack, NY
Charged:
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
DAVID CONTI, D.O.B. 3/14/1973 Franklin Square, NY
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 5 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
GEORGE COPPOLINO, D.O.B. 4/22/1964 Queens, NY
Charged:
• Conspiracy in the Fifth Degree, a class A misdemeanor, 3 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
D&D’S IMPRESSIVE AUTO COLLISION, INC.
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 1 count
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 4 counts
FACTORY PLUS COLLISION, INC.
Charged:
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 1 count
CARL FAVA, D.O.B. 1/15/1960 Forked River, NJ
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E Felony, 2 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 3 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
JESUS GARCIA, D.O.B. 4/13/1984 White Plains, NY
Charged:
• Conspiracy in the Fifth Degree, a class A misdemeanor, 1 count
• Contract or Agreement for Monopoly in Restraint of Trade, 1 count
DOMENICK GENISE, D.O.B. 3/16/1973 Oceanside, NY
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Criminal Tax Fraud in the Third Degree, a class D felony, 2 counts
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E Felony, 1 count
• Conspiracy in the Fifth Degree, a class A misdemeanor, 1 count
• Contract or Agreement for Monopoly in Restraint of Trade, 2 counts
MIGUEL HERNANDEZ, D.O.B. 06/02/1985 Bronx, NY
Charged:
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 1 count
DAUNTE HUFF, D.O.B. 7/23/1977 Queens, NY
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Criminal Possession of a Forged Instrument in the Second Degree, a class D felony, 4 counts
• Offering a False Instrument for Filing in the First Degree, a class E felony, 5 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 1 count
ANGELO MAZZIO, D.O.B. 9/2/1964 Queens, NY
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E felony, 2 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 3 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
MICHAEL MAZZIO, D.O.B. 10/11/1968 or 10/28/1968 Queens, NY
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E felony, 3 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 3 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
SALVATORE MAZZIO, D.O.B. 5/12/1977 Queens, NY
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E felony, 2 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 3 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
MIKE’S HEAVY DUTY TOWING, INC.
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E felony, 3 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
RJN FAMILY ENTERPRISES, INC. D/B/A TABS CONSULTING, INC.
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E felony, 18 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 2 counts
EDWIN ROIG, D.O.B. 3/3/1958 Queens, NY
Charged:
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
SOUTHSIDE COLLISION AND TOWING, INC.
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Money Laundering in the Second Degree, a class C felony, 1 count
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 3 counts
• Offering a False Instrument for Filing in the First Degree, a class E felony, 5 counts
KAREN STEININGER, D.O.B. 7/22/1979 Queens, NY
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 16 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 2 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 1 count
NORMAN TEITLER, D.O.B. 7/30/1943 Staten Island, NY
Charged:
• Offering a False Instrument for Filing in the First Degree, a class E felony, 18 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 2 counts
TOW-ARRIFIC, INC.
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Offering a False Instrument for Filing in the First Degree, a class E felony, 11 counts
• Conspiracy in the Fifth Degree, a class A misdemeanor, 2 counts
• Contract or Agreement for Monopoly in Restraint of Trade, 2 counts
MAURECE WIMBERLY , D.O.B. 7/8/1972 Queens, NY
Charged:
• Enterprise Corruption, a class B felony, 1 count
• Conspiracy in the Fourth Degree, a class E felony, 1 count
• Scheme to Defraud in the First Degree, a class E felony, 1 count
• Contract or Agreement for Monopoly in Restraint of Trade, 1 count
