New York–May 3…The New York State Department of Motor Vehicles (DMV) and the New York State Department of Taxation and Finance (NYSTF) could significantly reduce rampant auto registration fraud in New York by cross checking their records with a simple Excel spreadsheet, New Yorkers Stand Against Auto Insurance Fraud (NYSAIF), an organization of concerned New York drivers working to end auto insurance fraud in New York, today charged. Insurance fraud, of all kinds, costs New Yorkers hundreds of millions of dollars per year in higher fees and lost revenues.

New York has not made a serious attempt to crack down on vehicle registration fraud in more than 35 years, according to a recent state senate report [link]. A 1987 analysis of New York city license plates estimated that approximately 10% of city vehicles were illegally registered in other states, in places as far away as Alaska. Industry experts believe the percentage of vehicles in New York illegally registered well exceeds 10% today.

Thousands of New York vehicles are illegally registered in states like New Hampshire that have no sales tax, and states like Pennsylvania that have significantly lower registration, title, and insurance fees. Yet those falsely claiming to live in those states are paying income tax to New York.

“The left hand seems to have no idea what the right hand is doing in New York and that’s unacceptable in this day and age,” said NYSAIF spokesman David Schwartz. “How is it possible that a New York taxpayer can claim to the DMV that he lives in Florida or Texas while telling Taxation and Finance that he lives in New York? In the 21st Century one would think this would be a simple cross check.”

Other states are aggressively pursuing scofflaws. Oklahoma recently created a fine of up to $500 for illegally registering a car. Oregon began an advertising campaign — ”Illegal Registration: Don’t Even Think About It,” and the New Jersey Assembly overwhelmingly passed legislation just this week to crack down on auto registration fraud.

NYSAIF called upon DMV and NYTF to review their policies of sharing information.

A bill being championed in Albany by Senator Jeff Klein (S.2575 [check] would begin to address an auto registration fraud crisis growing out of control in New York State.

“Yesterday’s arrests show just how necessary Alice’s Law is in New York,” said NYSAIF spokesman David Schwartz, a former Kings County assistant district attorney. “Staged accidents are occurring all over New York State and they are putting the public at very real risk. Alice Ross, for whom this bill was named, lost her life in Queens 10 years ago after being forced off the road in one of these scams.”

Alice Ross, a 71-year-old wife and grandmother was killed in 2003 when her car was intentionally struck by a vehicle. Mrs. Ross’s car struck a tree, resulting in her death.

Besides the danger to drivers, New Yorkers have paid an estimated $1 billion in extra auto insurance premiums over the past five years because of these scams, NYSAIF said.

Alice’s Bill is now being considered in the State Assembly.

Residents on Staten Island are calling their state lawmakers’ offices to blow the whistle on neighbors who are illegally registering their cars out of state to save money on auto insurance.

“It drives people crazy,” said state Sen. Diane Savino (D-SI/Brooklyn). “Constituents are calling my office to report motorists who have out-of-state license plates.”

More than one in 10 vehicles owned by New York motorists ares registered out-of-state, according to New Yorkers Stand Against Insurance Fraud, an advocacy group.

Auto-insurance fraud cost New York motorists more than $200 million in 2010, according to the Insurance Information Institute. The costs of the fraud are passed along to motorists in New York through higher insurance premiums.

New York has the fourth-highest car-insurance premiums in the country. In Brooklyn, the average combined insurance premium is more than $2,000 — the highest in the state.

The out-of-state scam also costs the state and city governments tens of millions of dollars in taxes and registration, license and title fees. It is also more difficult for the city to collect parking and speeding tickets from scofflaws with out-of-state plates, officials said.

“This has been an unspoken joke,” said David Schwartz of NYSAIF. “It’s a situation that has gotten out of control and it’s unfair to law-abiding New York motorists.”

He said the rate evaders brazenly thumb their noses at the law because enforcement is non-existent.

Savino and state Sen. Jeff Klein of the Bronx (D-Bronx) are pushing a law to nail insurance scammers.

Read more from The NY Post…

New York, NY-March 4, 2013…With the announcement last week that a national insurance company has filed a $1.7 million medical fraud lawsuit against two New York medical corporations, New Yorkers Stand Against Insurance Fraud (NYSAIF) is renewing its call on the state legislature to finally pass legislation to reform the state’s no-fault laws in the 2013 Legislative Session.

The lawsuit is the latest in a string of insurance fraud cases involving criminals who have exploited the state’s no-fault laws. Two weeks ago, the U.S. Attorney’s office announced that five defendants involved in the largest single no-fault auto insurance fraud scheme ever charged pled guilty to defrauding insurance companies of more than $400 million. The Insurance Information Institute estimates no-fault fraud is costing New Yorkers hundreds of millions of dollars year-after-year.

“This latest case is yet another example of criminals exploiting our laws at the expense and safety of New York drivers,” said NYSAIF spokesman David Schwartz. “Many states across the country have already addressed no-fault reform, but New York continues to lag behind. We cannot allow another year to go by without making meaningful changes to our insurance laws.”

More information about the lawsuit and the U.S. Attorney’s case can be found here and here.

Standalone Staged Accident Crime, AKA “Alice’s Law”

New York–Jan. 28…New Yorkers Stand Against Insurance Fraud (NYSAIF), an organization of concerned New York motorists seeking to make staged auto accidents a standalone crime and to crack down on insurance fraud driving up consumer rates, today praised New York State Attorney General Eric Schneiderman for a series of arrests announced this weekend that will make New York roads a little bit safer.

The Attorney General’s office announced the arrest of 16 individuals over the weekend who were allegedly involved in six separate stage accidents schemes — including crashes into a New York City bus, livery vehicles, and rented cars.

“Staged accidents pose a serious threat to the lives of New York drivers, and NYSAIF is pleased that Attorney General Schneiderman has made these 16 arrests,” said NYSAIF spokesman David Schwartz. “It is imperative, though, that New York’s law enforcement community be given additional tools to crack down on these wanton criminal acts because it is costing New York drivers hundreds of millions of dollars in added insurance costs — and it has cost at least one innocent driver her life. On behalf of every New York driver, NYSAIF continues to press for passage of ‘Alice’s Law’, which will finally make staged accidents a standalone felony under New York penal law.”

Alice’s Law is named for Alice Ross, a Queens grandmother who was killed in 2003 during a staged auto accident. Similar versions of the Alice’s Law legislation passed the State Senate and State Assembly last year, but the bills were not reconciled before the legislative session ended in Albany.

Attorney General Schneiderman said in a news release issued from his office: ““This all-too-common staged accident scheme puts innocent lives in danger so perpetrators can rip off the system to make a quick buck. Breaking up these criminal operations means

A Staten Island woman was among 16 suspects who hoped to score insurance paydays by staging vehicular crashes in the borough and Brooklyn, said authorities.

No-fault insurance paid more than $18,000 in medical bills for phony injury claims submitted on behalf of Kanona Martinez, 41, according to state Attorney General Eric T. Schneiderman. Ms. Martinez’s claim stemmed from a fake accident on Nov. 28, 2009, on Park Place and Brooklyn Avenue in Brooklyn, said court papers.

In all, the defendants submitted fraudulent claims totaling almost $332,000 for six bogus accidents, said Schneiderman. Five incidents occurred in Brooklyn and one happened on Staten Island, he said.

Prosecutors said the episodes took place between Oct. 29, 2009, and June 29, 2011.

Ms. Martinez, of Port Richmond, is the only borough resident criminally charged.

The arrests were the culmination of a joint, ongoing probe into phony accidents and no-fault insurance fraud by the A.G., New York City Police Department and the state Department of Financial Services.

“This all-too-common staged-accident scheme puts innocent lives in danger so perpetrators can rip-off the system to make a quick buck,” Schneiderman said in a statement. “Breaking up these criminal operations means safer streets and a fairer market for consumers whose insurance premiums skyrocket as a result of this kind of fraud.”

Ms. Martinez was involved in the first incident.

The Heberton Avenue resident was driving a rented car and crashed into an unsuspecting livery driver’s cab, said Schneiderman. She and one of her passengers, Kevin Simington, 23, of Brooklyn, claimed to be hurt, the A.G. said.

Ms. Martinez alleged neck, lower back and left knee injuries, and more than $24,000 in no-fault claims were filed on her behalf, said court records. The insurance carrier paid $18,375 on those claims, court documents state.

When recently confronted by police, Ms. Martinez allegedly admitted to the ruse.

She told cops that a man named “Clarence” offered her money to rent a car, participate in a staged accident and get medical treatment, said court papers. “Clarence” told Ms. Martinez he knew she had been hurt on the job and that she could receive treatment for those injuries if she participated in the scam, court records said. Those document don’t say where she worked.

Ms. Martinez followed through, rented a car, picked up Simington and another passenger and “intentionally” struck a livery cab after it picked up two passengers, said court papers. Afterward, she received medical treatment at a clinic in Brooklyn where “Clarence” told her to go, court filings said.

She was charged in Brooklyn Criminal Court with two counts of falsifying business records and single counts of insurance fraud and grand larceny, all felonies. Ms. Martinez also is accused of conspiracy and could face a maximum of two and a third to seven years in prison if convicted of the insurance fraud or grand larceny counts.

In a telephone interview Thursday, Ms. Martinez, who is free on her own recognizance, vehemently denied the allegations and said she didn’t know the other suspects.

The Staten Island incident occurred on Oct. 29, 2009, at the intersection of Victory Boulevard and Van Duzer Street, Stapleton, said Schneiderman.

David Ross, 29, of upstate Binghamton, was driving a 2002 Ford Suburban and intentionally reversed gear and plowed into a livery cab that was picking up a passenger, said court papers. The passenger entering the cab was a co-conspirator named Clarence McCollum, court documents said.

Ross and his passenger, Michael McAtee, 29, of Manhattan, alleged bogus injuries and received a combined $10,000 in no-fault medical payments, said court papers.

They were charged with the same crimes as Ms. Martinez.

Read more from SILive.com…

As New York’s average no-fault claim is 56% higher than the national median of$5,135, it is clear that we need to take positive steps to address this issue. As you know, auto insurance fraud is a prime reason that New Yorkers pay some of the highest premiums in the nation, 54% more on average than drivers in other states.

While the State Department of Financial Services has unde1iaken some positive regulatory efforts to crack down on deceptive practices and unscrupulous medical providers in the no-fault system, more needs to be done legislatively. I have supported, and will continue to support, the bills you highlighted and, as you are aware, I voted in favor of A.1 0784 when it passed the Assembly in June.

I am also a co-sponsor of Assembly Bill A.5200, omnibus legislation on no-fault fraud, which, if enacted, would address many of the concerns that have been raised on this topic. I invite you to review this legislation and lend your support in our efforts to address this important issue.

I look forward to working with you and the coalition, New Yorkers Stand Against Insurance Fraud, to enact meaningful no-fault fraud reform.

“Staged auto accidents are serious. They inflict physical and economic harm — and, in the case of my constituent, Alice Ross, death. My bill sends a clear message to the crooks roving our streets and highways in search of a pay day at our expense, that these shenanigans will not be tolerated. Thanks to “Alice’s Law” we now have a mechanism in place to charge these unscrupulous individuals and send them to prison.”

 

 

“It’s frighting to know that there are drivers on the road every day looking to hit unsuspecting victims with their vehicles for insurance money. New York has to get serious about staged accidents and auto insurance fraud, and I proudly stand with NYSAIF in its efforts to make our roads safer.”

Auto insurance fraud — which includes staged accidents that have killed innocent victims — has cost New York drivers more than a billion extra dollars in auto insurance premiums over the past five years. New York drivers now pay 54% more for auto insurance on average than drivers in other states.

No fault auto insurance fraud is one of the fastest growing crimes in New York State. Criminal enterprises, working with corrupt doctors, game the system for hundreds of millions of dollars every year. Last year, two major crime syndicates were busted in New York by federal and state authorities, but they are believed to be just the tip of the iceberg, NYSAIF says.

Senator Martin Golden stated:

“On behalf of all residents of Brooklyn and New York State, I proudly accept the endorsement of NYSAIF, and pledge my continued support to curb insurance fraud in the Empire State. I will continue to work to lead efforts in the State Legislature to get serious about reforming our auto insurance laws. As premiums continue to rise, there is no denying that we need auto insurance reform now.”

“Senator Golden has promised to stand by drivers this year in Albany, so New York drivers will stand by him/her in this election,” said NYSAIF spokesman David Schwartz. “NYSAIF is proud to endorse Senator Martin Golden in this race, and we will look forward to working with him beginning in January to get meaningful reform passed in 2013.”

No fault auto insurance reform is supported by law enforcement officials around New York State, including each of the five New York City district attorneys.