On September 28, 2020, Douglas Krimes was arrested in Lebanon County. According to the criminal complaint, Krimes contacted police at approximately 9:00 PM on March 20, 2019 and reported seeing two suspicious men walking toward his business, Krimes Industrial and Mechanical Inc. The complaint stated that the police found no signs of forced entry to the business, but inside the facility’s warehouse they discovered that the computers, control screens and equipment for 7 different machines had been damaged. The complaint further stated that the damage appeared to have been caused by blows from a blunt force object. On the following day, Krimes allegedly contacted his insurance agent and reported that his business had been vandalized. The agent then initiated a claim on Krimes’ behalf with Erie Insurance. In a recorded statement to Erie, Krimes allegedly claimed that the vandalized machinery would result in lost revenue for his business and that the damaged equipment would require significant repairs. According to the complaint, the total damage was estimated at $261,853.13. Erie retained a forensic consulting firm to assist with the insurer’s investigation of the loss. The firm interviewed Krimes, who allegedly claimed that he left the business at 10:00 PM on March 20 and drove several miles, then returned to the business because he sensed that something was not right. According to the complaint, Krimes provided a different account of his actions on March 20 when he was interviewed by Erie Insurance. Krimes allegedly stated that he left the business at 9:45 PM, drove about 15 minutes toward his home, phoned his wife and then returned to the business.  However, according to the complaint, investigators reviewed Krimes’ telephone records and found that he never left the general area of his business that evening. Further, a review of the company’s records allegedly revealed that Krimes Industrial and Mechanical, Inc. had experienced deepening financial woes during the years prior to the loss and was in danger of failing. When Erie asked Krimes to undergo an Examination Under Oath, he allegedly withdrew the claim. Krimes was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt/Theft by Deception (F3), and one count of False Reports to Law Enforcement (M3).

On September 24, 2020, Stephanie Weller was arrested in Fulton County. According to the criminal complaint, at 7:11 AM on January 9, 2020, Weller added a vehicle to her existing Progressive Insurance policy. On January 10, 2020, at 5:13 PM Weller allegedly reported to Progressive that her son had been driving the vehicle when it was involved in a crash on January 9, 2020 at 8:00 AM. However, according to the complaint, investigators learned that emergency services were notified of the crash at 6:58 AM and police responded to the accident scene at 7:12 AM. Progressive concluded that the crash had occurred before Weller added the vehicle to her policy and denied her claim. Weller was charged with one count of Insurance Fraud (F3) and one count of Theft by Deception (F3).
 

On September 22, 2020, Albert Johnson and Jacquis Richet were arrested in Montgomery County. According to the criminal complaint, on March 13, 2019, Johnson purchased an insurance policy for his motorcycle from Progressive Insurance. On April 10, 2019, Johnson allegedly contacted Progressive and reported that his motorcycle had been stolen from in front of his home sometime between 9:00 AM and 4:00 PM that day. The complaint further stated that Johnson told the insurer that he and his friend Jacquis Richet had spent the day in Delaware and discovered the theft when they returned to Johnson’s residence. Johnson allegedly informed the Progressive claims representative that he also filed a stolen vehicle report with his local police department. On May 10, 2019, Progressive conducted a telephone interview with Richet, who allegedly maintained that the motorcycle was parked in front of Johnson’s home when they left for the trip, but was gone when they returned. At the request of Progressive, Johnson provided the insurer with photos of the motorcycle which he allegedly claimed were taken about a month before the loss. However, according to the complaint, investigators determined that the photos were actually taken at 12:58 PM on the purported date of the theft, when Johnson and Richet allegedly were in Delaware. Progressive denied the $5,370.00 claim.  Johnson was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt/Theft by Deception (F3), one count of Criminal Use of a Communication Facility (F3), one count of Criminal Conspiracy (F3) and one count of False Reports to Law Enforcement (M3). Richet was charged with one count of Insurance Fraud (F3) and one count of Criminal Conspiracy (F3).

 On September 16, 2020, Miqual Ford was arrested in Allegheny County. According to the criminal complaint, Ford was driving her uninsured vehicle at 3:00 AM on May 24, 2020, when it struck a pole. Ford allegedly purchased a Progressive Insurance automobile policy at 6:49 PM that day. The complaint stated that Ford filed a claim with Progressive on May 27, and reported that the accident had occurred at 1:30 PM on May 26. Investigators reviewed the police crash report and spoke with a representative of the company that towed Ford’s vehicle from the scene and allegedly determined that the accident occurred prior to the policy inception on May 24. Progressive denied the $3,546.00 claim. Ford was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt/Theft by Deception (F3).
 

On September 15, 2020, Wellington Santana was arrested in Montgomery County. According to the criminal complaint, Santana submitted a claim via the Progressive Insurance mobile application on April 30, 2020. He allegedly reported that his unoccupied, parked vehicle had been struck by an unknown motorist sometime between the late evening hours of April 28 and the early morning hours of April 29. When the insurer contacted Santana on May 1, Santana allegedly stated that the vehicle had no previous damage, but the accident caused damage to his vehicle’s rear passenger side and rear quarter panel. Santana allegedly provided supporting photographs to Progressive in which the vehicle’s passenger side rear bumper and lift gate appeared to be damaged. According to the complaint, Progressive reviewed the photos and claim materials and determined that the damage to Santana’s vehicle was inconsistent with the type of damage caused by a single impact.  Investigators allegedly discovered that the vehicle’s previous owner had submitted a claim to Progressive in 2019 for damage to the vehicle’s rear passenger side quarter panel. The complaint stated that investigators compared the 2019 claim photos with those provided by Santana and found that the earlier damage was visible in both sets of photos. Santana was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt/Theft by Deception (M1) and one count of Criminal Use of a Communication Facility (F3).
 

 On September 15, 2020, Raymond Foster and John Stafford, Jr. were charged in Fayette County. According to the criminal complaint, on November 14, 2018, Foster filed a claim with Progressive Insurance in which he indicated that his vehicle was damaged that morning when it swerved to avoid hitting a deer. During his initial phone call to Progressive, Foster allegedly claimed that he had been driving at the time of the accident and that his cousin, Stafford, was a passenger. The complaint stated that when Progressive subsequently noted to Foster that Foster was an excluded driver on his own policy, Foster claimed that Stafford had been driving when the accident occurred. Progressive conducted a recorded interview of Stafford, who allegedly maintained that he had been driving. However, according to the complaint, a police officer who had responded to the accident confirmed that Foster had been driving. Progressive denied the $12,524.94 claim. Both Foster and Stafford were each charged with one count of Insurance Fraud (F3), one count of Insurance Fraud (F3), and one count of Theft by Deception (F3).

On September 10, 2020, Nicolette Thompson was arrested in Dauphin County. According to the criminal complaint, on June 11, 2019, Thompson obtained a Progressive Insurance personal auto policy, which listed her significant other as an excluded driver. The complaint stated that Thompson’s vehicle was involved in a two vehicle accident at approximately 8:50 PM on November 30, 2019. At approximately 9:24 PM, the driver of the second vehicle allegedly reported the accident to Progressive Insurance. The driver allegedly told the insurer that the first vehicle had a male driver who left the crash scene because he had no license, but returned a short time later with Thompson. According to the complaint, a Progressive claims representative contacted Thompson on December 5, 2019, to discuss the accident. During that conversation, Thompson allegedly maintained that she was driving her vehicle at the time of the crash. Progressive denied the claim. Thompson was charged with Insurance Fraud (F3) and one count of Criminal Attempt/Theft by Deception (M1).
 

On September 9, 2020, Vadym Honcharenko was arrested in Chester County. According to the criminal complaint on March 22, 2019, Honcharenko obtained a vehicle insurance policy from Progressive Insurance which included a $250 collision coverage deductible. On April 2, Honcharenko allegedly used the internet to file a claim with Progressive for damage to his vehicle’s front bumper. The complaint stated that according to Honcharenko, the vehicle was damaged while it was parked unattended at Honcharenko’s home.  The insurer estimated the damage at $1,226.35. Honcharenko allegedly told the insurance representative that the vehicle had no prior damage and that he had not filed any other claims for damage to the vehicle. However, Progressive representatives allegedly discovered that Honcharenko also had an active policy on the vehicle with State Farm, which included a $1,000 collision deductible. According to the complaint, an investigation revealed that on March 16, 2019, Honcharenko had filed a claim with State Farm for damage to his vehicle’s front bumper. In that claim, Honcharenko allegedly told State Farm that the damage occurred while the car was parked outside of his workplace. Progressive denied the claim. Honcharenko was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt/Theft by Deception (M1), one count of Criminal Use of a Communication Facility (F3) and one count of Unlawful Use
of a Computer (F3).
 

On September 22, 2020, Davon Fuqua was charged in Allegheny County. According to the criminal complaint, on September 14, 2018, Fuqua obtained a liability only policy from Safe Auto Insurance. At 5:10 PM on October 12, 2018, Fuqua allegedly contacted Safe Auto to verify his insurance information and to make a policy payment. According to the complaint, Fuqua added comprehensive and collision coverage to the Safe Auto policy on October 13 at 11:47 AM. The complaint further stated that Fuqua told an acquaintance that his vehicle had been involved an accident, but the damage would not be covered by his current policy. The acquaintance then allegedly agreed to purchase a new policy for Fuqua’s vehicle from a different insurer. According to the complaint, the acquaintance contacted Progressive Insurance on October 13, 2018, at 4:48 PM and purchased a policy with comprehensive and collision coverage for Fuqua’s vehicle. On October 13, 2018, at 7:09 PM Fuqua allegedly contacted Safe Auto and asked to cancel that policy. According to the complaint, Fuqua contacted Progressive on the following day and reported that his vehicle had been stolen sometime after 11:30 PM on October 13. The complaint further stated that surveillance footage taken at 2:48 PM on October 12 showed Fuqua’s vehicle with no visible front end damage. But footage from the morning of October 13 allegedly showed a truck towing Fuqua’s vehicle, which had significant front end damage. According to the complaint, the tow company told authorities that it received a request on the morning of October 13 to tow a vehicle that had been in an accident the night before. Progressive determined that Fuqua’s vehicle was damaged prior to the policy inception and denied the $5,509.37 claim. Fuqua was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt/Theft by Deception (F3).

On September 25, 2020, Bradley Messer was sentenced in Mercer County after entering a negotiated plea to one count of Criminal Attempt/Theft by Deception (M1). Messer’s co-defendant, Tammy Kachik was sentenced on August 5, 2020, after entering a negotiated plea to one count of Insurance Fraud (F3).  On June 29, 2019, an acquaintance of Messer and Kachik crashed his motorcycle shortly after leaving Messer’s home. On July 1, the owner of the motorcycle added comprehensive and collision coverage to his Progressive Insurance policy. He filed a claim for the accident on July 6 and told Progressive that the motorcycle struck a deer earlier that day. He advised the insurer that Messer and Kachik could verify the date of loss. The insurer subsequently contacted Messer and Kachik who both maintained that the crash occurred on July 6. A subsequent investigation revealed that the accident took place before comprehensive and collision coverage were added to the policy. Progressive denied the claim. Messer was sentenced to serve 3 years of probation, ordered to complete 50 hours of community service and pay the cost of prosecution. Kachik was sentenced to serve 15 months of probation, ordered to complete 50 hours of community service and pay the cost of prosecution.

On September 16, 2020, Joshua B. Addis was sentenced in Fayette County after entering an open plea to one count of Criminal Attempt/Theft by Deception (M1). On November 27, 2018, Addis was operating his vehicle when it was involved in an accident. Addis told Progressive Insurance that he had been driving up a hill in icy conditions when his vehicle slid back and collided with another truck. Addis claimed that once the other truck pulled free, Addis’ vehicle slid off the roadway and struck a culvert. An investigation revealed that Addis’ truck did not leave the roadway, but had sustained additional damage prior to the incident. Progressive denied the claim. Addis was sentenced to serve 18 months of probation and ordered to pay all court costs.

On September 14, 2020, Vinnie Allegretto was sentenced in Elk County after entering a negotiated plea to one count of Theft by Deception (M1). On June 29, 2019, the State Farm vehicle policy belonging to a friend of Allegretto was canceled for nonpayment. The friend purchased a new State Farm policy on August 30. On September 2, she contacted the insurer and claimed that her vehicle was damaged by a deer strike on the previous day. State Farm determined that the vehicle was a total loss and issued a check in the amount of $5,153.68 to the lienholder. State Farm subsequently received information that the vehicle actually was damaged on August 19, before the new policy was purchased. A police accident report confirmed the August 19 date of loss. During the course of State Farm’s investigation, Allegretto informed the insurer that he had repaired his friend’s damaged car before the September 1 deer strike. However, investigators compared photos of the car taken at the time of the accident with photos taken by State Farm during its claim inspection and determined that the damage was the same. Allegretto was sentenced to serve two years of probation, perform 50 hours of community service, pay all fines and costs and pay a portion of the $5,153.68 restitution to State Farm.

On September 2, 2020, Maurice Strawder and Holly Gostowski were sentenced in Allegheny County after they each entered negotiated pleas to one count of Criminal Attempt/Theft by Deception (M1). On April 26, 2019 at approximately 9:03 AM, Gostowski’s significant other backed Gotowski’s uninsured vehicle into a motorcycle operated by Strawder. Gostowski was a passenger in her car at the time of the accident. Police responded to the scene and completed a report. At 2:47 PM that same day, Gostowski contacted Progressive Insurance and purchased a policy for her vehicle. On April 29, Strawder contacted Progressive and reported that his motorcycle had been involved in an accident with Gostowski’s vehicle at approximately 8:30 AM that morning. Strawder told Progressive that police were not called to the scene. When Progressive interviewed Gostowski, she claimed that the crash occurred between 8:00 AM and 8:30 AM on April 29. She also told Progressive that police were not called. However, investigators obtained a copy of a police report which revealed that the crash occurred on April 26, prior to the inception of Gostowski’s coverage. Investigators determined that Gostowski and Strawder had agreed to provide false information to Progressive in hopes that the insurer would cover the cost of repairs to Strawder’s motorcycle. Strawder was sentenced to serve 6 months of probation, 30 days of which he will serve under house arrest. He was ordered to complete 50 hours of community service, pay a $600.00 fine and pay all court costs. Gostowski was sentenced to a term of 6 months of probation and ordered to perform 50 hours of community service. She was also fined $600.00 and ordered to pay all court costs.

We are pleased to welcome Deputy Attorney General April Lysaght to the Insurance Fraud Section.
 

Pennsylvania Bulletin Notice 2016-04 (issued April 30, 2016) reminded insurers of their obligations to report suspected arson or insurance fraud to law enforcement agencies within the Commonwealth.  The bulletin also announced a decision by the Pennsylvania Department of Insurance to allow licensees to satisfy their reporting obligation when they electronically submit reports of suspected fraud to the National Insurance Crime Bureau (NICB).

 

On July 6, 2017, Pennsylvania began participating in this online service which enables member companies to electronically forward reports of suspected fraud to the Pennsylvania Office of Attorney General’s Insurance Fraud Section or other appropriate law enforcement agencies at the same time the companies report suspicious claims to the NICB. NOTE: The NICB is not a law enforcement agency. Therefore, a licensee cannot satisfy the fraud reporting requirement by submitting a non-electronic (paper) referral only to the NICB.

 

Important: When utilizing electronic filing through NICB, users should take careful note of the provided instructions regarding the “Party” to a claim.  Information entered about a Party will only be transmitted to law enforcement if users select one of two options: “This Party was subject to an SIU investigation” or “This Party was subject to an enforcement action.”  Some users have missed this notation about individual Party data and consequently have submitted incomplete information to law enforcement.