|
York County Car Dealer, Dealerships Sentenced in Vehicle Title Fraud Case
|
|
 On October 17, 2023, York County used car dealer Luis Salazar and his businesses, Salazar Auto Sales and N&G Towing, were sentenced in Dauphin County. Salazar was sentenced after entering a negotiated plea to one count of Conspiracy (F3), one count of Theft by Deception (F3), one count of Title Washing (F3), one count of Tampering with Public Records (F3), one count of Insurance Fraud (F3). Salazar Auto Sales was sentenced after entering a negotiated plea to one count of Conspiracy (F3), one count of Theft by Deception (F3), one count of Title Washing (F3), one count of Tampering with Public Records (F3), one count of Insurance Fraud (F3), one count of Insurance Fraud (M1), one count of False Title Registration (M2), and one count of Deceptive Business Practices (M2). N&G Towing was sentenced after entering a negotiated plea to one count of Conspiracy (F3), one count of Title Washing (F3), one count of Tampering with Public Records (F3), one count of False Title Registration (M2), and one count of Deceptive Business Practices (M2). On December 6, 2022, pursuant to two written presentments issued by the 47th Statewide Investigating Grand Jury, criminal charges were filed in Dauphin County against 25 individuals and 21 businesses involved in a vehicle “title washing” ring, which operated in various counties throughout Pennsylvania. According to the presentments, the charges were the result of a lengthy Grand Jury investigation conducted by the Office of Attorney General’s Insurance Fraud Section and Bureau of Narcotic Investigations, with the assistance of the Lehigh County Auto Theft Task Force, the Pennsylvania State Police Auto Theft Task Force, and the Philadelphia Police Department. The participants in the ring included used car dealers, certified vehicle safety inspectors, tag agents and others, who profited substantially from the fraudulent titling of vehicles in Pennsylvania. Salazar, who owned Salazar Auto Sales and N&G Towing, engaged in and conspired with others to illegally “flip” out-of-state salvage vehicle titles to Pennsylvania salvage titles, then fraudulently convert them to Pennsylvania reconstructed vehicle titles. In many instances, the applications for Pennsylvania reconstructed vehicle titles contained false statements or fraudulent documentation that indicated that the vehicles were examined by certified enhanced safety inspectors and were deemed to have been restored to roadworthiness. In fact, many of the vehicles in question were never inspected. Salazar was sentenced to serve five years of probation. He was ordered to pay a civil penalty of $7,000.00 and restitution in the amount of $57,000.00 to Erie Insurance. Both Salazar Auto Sales and N&G Towing were ordered to cease conducting all business, and to return to PennDOT all PA dealership license plates registered to each of the businesses. Both businesses were ordered to pay a fine of $50.00 per count. All counts for Salazar, Salazar Auto Sales, and N&G Towing are to run concurrently.
|
|
 On October 31, 2023, Kathryn Williams was arrested in Lancaster County. According to the criminal complaint, on August 19, 2023, Williams purchased a renter’s insurance policy from the Homesite Group Insurance Company for her rental property at Peaceful Homes. The complaint stated that on September 1, 2023, at 8:26 AM, Williams called the Homesite Group and filed a claim, indicating that the ceiling in the residence collapsed and damaged her furniture on August 29, 2022. During the investigation, it was discovered that on August 11, 2023, Williams allegedly placed a work order with Peaceful Homes for damage to her ceiling. The date of the work order was eight days prior to the inception of Williams’ Homesite policy. The claim was denied. Williams was charged with one count of Insurance Fraud (F3).
|
 On October 26, 2023, Jihad Simpson was arrested in Philadelphia County. According to the criminal complaint, on December 17, 2020, Simpson added a 2010 Chevy Tahoe to his existing automobile policy with NJM Insurance. Williams allegedly indicated to the insurer that his vehicle would be primarily garaged at an address in New Stanton, PA. According to the complaint, an individual contacted NJM and advised that he resided at the New Stanton address and had received correspondence from NJM addressed to Simpson. The complaint stated that the caller assured NJM that Simpson did not live at the New Stanton address. NJM launched an investigation and obtained recorded statements from Simpson. In the statements, Simpson allegedly maintained that his primary residence was at the New Stanton address reflected on his policy. According to the complaint, Simpson’s Tahoe was totaled in a crash that occurred in Philadelphia in 2023. Investigators allegedly found that at the time of the accident, Simpson’s driver’s license and PennDOT registration for the Tahoe listed a Philadelphia address for Simpson. According to the complaint, investigators concluded that Simpson had provided misleading information about his actual address to NJM, in order to obtain insurance coverage at a lower premium rate than he was entitled. Simpson was charged with one count of Insurance Fraud (F3), one count of Theft by Deception (F3), one count of Criminal Use of Communication Facility (F3), and one count of Insurance Fraud (M1).
|
|
 On October 20, 2023, Jacari Council was arrested in Allegheny County. According to the criminal complaint, on April 14, 2023, Council purchased a Progressive Insurance automobile policy for his 2018 Chevy Malibu. On April 18, 2023, Council allegedly filed a claim with Progressive, stating that his vehicle had been damaged in an accident that occurred in Pittsburgh earlier that day. According to the complaint, Council sent photographs of his damaged vehicle to Progressive in support of his claim. A Progressive representative reviewed the photos and allegedly discovered that the photo metadata indicated that the pictures were taken on April 13, 2023, one day prior to the inception of Council’s policy. When Progressive confronted Council with this information, he allegedly claimed that the dates reflected in the metadata must have changed when he transferred the photos from his phone to his laptop. Investigators interviewed Council at his residence on September 6, 2023. According to the complaint, Council admitted to the investigators that his Malibu had been involved in an accident on April 13, and that he had purchased the Progressive policy the following day. Council also allegedly admitted that he misrepresented the date of loss to the insurer. The claim was denied. Council was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F3).
|
 On October 18, 2023, Aminah Street was arrested in Allegheny County. According to the criminal complaint, on March 7, 2023, Street purchased a Progressive Insurance automobile policy for her 2014 Equinox. The policy allegedly included a comprehensive coverage deductible of $2,500.00. The complaint stated that on March 26, 2023, Street telephoned Progressive and advised that her car had struck a deer the previous evening. Street allegedly then asked the representative about her insurance options. The complaint stated that the Progressive representative told Street that she should obtain an estimate of the damage to her vehicle, so that the insurer could determine whether the repair costs exceeded Street’s policy deductible. According to the complaint, on March 30, 2023, Street asked Progressive to lower her comprehensive deductible to $500.00 and was advised that the new deductible would become effective on April 4, 2023. The complaint stated that on April 14, 2023, Street reported to the insurer that her 2014 Equinox was damaged in a deer strike, which occurred earlier that day. Progressive took Street’s recorded statement on April 26, 2023. During the call, Street allegedly maintained that the deer strike occurred on April 14, and that her Equinox had no prior damage. According to the complaint, when she was asked about her March 26 call to Progressive concerning a deer strike, Street claimed that she did not remember making the call. Progressive denied the claim. Street was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (M1).
|
|
 On October 17, 2023, Steven Batista was arrested in Bucks County. According to the criminal complaint, on April 23, 2022, Batista’s 2007 Toyota Camry was involved in a three-vehicle accident in Philadelphia. Batista was allegedly transported by EMS from the accident scene to a local hospital, where he was treated and released. The complaint stated that Batista purchased coverage from Progressive Insurance for his Toyota Camry at approximately 10:14 PM on April 23, while still at the hospital. On April 27, Batista allegedly used Progressive’s online reporting system to file an accident claim. According to the complaint, during a recorded statement to Progressive, Batista claimed that the crash involving his Camry occurred at approximately 7:39 AM on April 24, after he had purchased insurance for his car. Investigators reviewed the EMS report and Batista’s hospital records in connection with the accident and allegedly determined that the crash had occurred at 7:20 PM on April 23, 2022, prior to the inception of Batista’s policy. The claim was denied. Batista was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt / Theft by Deception (F3), and one count of Criminal Use of a Communication Facility (F3).
|
 On October 16, 2023, Patty Tyler was arrested in Beaver County. According to the criminal complaint, Tyler purchased coverage from Progressive Insurance for her 2015 Toyota Camry on October 4, 2022. On March 30, 2023, Tyler allegedly contacted Progressive and claimed that her Camry had been vandalized. The complaint stated that Tyler informed the insurer that she last operated the Camry in January 2023, and that the vehicle had no prior damage. When a Progressive representative reviewed photographs of the vehicle submitted by Tyler, the representative noticed that the Camry’s front bumper appeared to be detached and that the car’s front fender appeared to show significant rusted collision damage. On April 5, 2023, investigators inspected Tyler’s vehicle. According to the complaint, they noted that the primary damage to the Camry appeared to be from a collision that occurred more than six months earlier. The investigators allegedly reviewed a Center Township Police Department accident report, which indicated that Tyler’s vehicle struck a guardrail at approximately 8:30 PM on November 29, 2020. The complaint further stated that witnesses confirmed the time and date of the accident, as well as the damage. When investigators confronted Tyler with evidence that her car had been totaled due to a crash that occurred in November 2020, Tyler allegedly admitted to having misrepresented the facts of the loss to Progressive. Progressive denied the claim. Tyler was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F3).
|
|
 On October 13, 2023, Stephanie Carbaugh was arrested in Adams County. According to the criminal complaint, on August 20, 2022, at 12:01 AM, Carbaugh went online and obtained a vehicle policy from Progressive Insurance. On November 28, 2022, at 3:14 PM, Carbaugh allegedly called Progressive and asked to add comprehensive coverage for her 2009 Honda Civic. The complaint stated that on December 10, 2022, at 10:39 PM, Carbaugh contacted the insurer and reported that her Honda had been involved in an accident earlier that same evening at approximately 9:00 PM. Carbaugh allegedly claimed that she swerved to keep the car from striking a deer, which caused her Honda to leave the roadway. According to the complaint, Carbaugh advised that the crash caused her car’s airbags to deploy and resulted in extensive front end damage to her Honda. Progressive investigators obtained a Car Fax report for the Honda, which allegedly showed that on November 22, 2022, Carbaugh’s Honda struck a stationary object in Thurmont, Maryland. Investigators contacted the Thurmont Police Department and allegedly confirmed that the Maryland crash occurred on November 22, 2022, at 5:22 AM. According to the complaint, Carbaugh was driving the car at the time of the accident and was subsequently charged by local police for Driving Under the Influence. The Honda allegedly was towed from the accident scene on November 22, according to the tow company invoice. Progressive allegedly concluded that the damage to Carbaugh’s Honda occurred before she added comprehensive coverage to her policy. The claim was denied. Carbaugh was charged with one count of Insurance Fraud (F3) and one count of Criminal Use of a Communication Facility (F3).
|
 On October 13, 2023, Marcus Gainer was arrested in Allegheny County. According to the criminal complaint, on January 10, 2023, at approximately 6:54 PM, Gainer was involved in a two-vehicle accident while driving his 2017 Dodge. The complaint stated that McKeesport police responded to the scene and documented the date and time of the accident in the police crash report. Both vehicles were towed from the scene. A tow receipt allegedly revealed that Gainer’s inoperable Journey was impounded on January 10 at 7:45 PM, and then at 7:53 PM, Gainer went online and obtained a Progressive Insurance automobile policy for the Journey. The complaint stated that on January 12, 2023, Gainer filed an online claim with Progressive and reported that the Journey was involved in an accident at approximately 10:30 PM on January 10. According to the complaint, investigators reviewed the police accident report and the tow company receipt for the Journey and concluded that the crash had occurred before Gainer purchased his policy. The claim was denied. Gainer was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F3).
|
|
 On October 5, 2023, Malik Brown was arrested in Montgomery County. According to the criminal complaint, on July 2, 2020, Brown claimed that he had been injured on the job, while working as a chemical mill operator for Custom Processing Services. Brown allegedly told his employer that he had been using a ladder when he missed a step and fell five feet, injuring his lower back and right knee. The company allegedly reported the accident to its Workers’ Compensation carrier, Zenith Insurance. According to the complaint, Brown advised Zenith and several of his treating physicians that he had not injured his back prior to the July 2 accident. According to the complaint, Zenith investigators obtained information concerning two previous Workers’ Compensation claims filed by Brown. The complaint further stated that Brown testified under oath during a December 9, 2020, deposition that was taken in connection with his 2020 claim. During the testimony, Brown allegedly admitted that he had filed a Workers’ Compensation claim in 2019, involving an on-the-job injury to his back. According to the complaint, Brown testified that he received a cash settlement as a result of that 2019 claim. Brown allegedly denied that he had filed any Workers’ Compensation claims before 2019, but according to the complaint, Pennsylvania Bureau of Workmen’s Compensation records revealed that he had filed a claim in 2014. Brown was charged with one count of Workmen’s Compensation Fraud (F3), one count of Perjury (F3), one count of Theft by Deception (F3), one count of Criminal Attempt / Theft by Deception (F3), and one count of Criminal Use of a Communication Facility (F3).
|
 On October 5, 2023, Isaiah Scott-Deshields was arrested in Delaware County on an Extradition Warrant. According to the criminal complaint, Scott-DeShields was involved in an accident while driving his 2008 Dodge Ram truck in Montgomery County on July 14, 2022, at approximately 9:47 AM. The complaint stated that Scott-DeShields’ truck struck another vehicle, then fled the scene. The driver of the other involved vehicle allegedly reported the hit-and-run accident to the Lower Merion Police Department and provided police with the fleeing vehicle’s PA registration number. According to the complaint, police immediately contacted Scott-DeShields, who admitted that he had been involved in the accident. Scott-DeShields also allegedly provided the police with his driver’s license information and State Farm Insurance information pertaining to his 2008 Dodge Ram. According to the complaint, information concerning the accident and Scott-DeShields’ purported policy was communicated to State Farm. When State Farm contacted Scott-DeShields, he allegedly asserted that his truck had been insured by State Farm. But according to the complaint, neither the insurer nor the agent identified on Scott-DeShields’ purported insurance card found any record of a State Farm vehicle policy issued to Scott-DeShields. The complaint further stated that the policy number listed on Scott-DeShields’ card was not consistent with State Farm’s numbering format for policies. Scott-Deshields was charged with two counts of Insurance Fraud (F3), one count of Criminal Attempt / Theft by Deception (F3), one count of Theft by Deception (F3), one count of Forgery (F3), one count of Criminal Use of Communication Facility (F3), one count of Accidents Involving Damage to Attended Vehicle (M3), and one count of False Application for Certificate of Title or Registration (M1).
|
|
 On October 2, 2023, Frantz Roland was arrested in Montgomery County. According to the criminal complaint, Roland purchased a policy from Progressive Insurance for his 2011 Hyundai Sonata on December 1, 2022, at 5:29 PM. On January 30, 2023, at 10:07 PM, Roland allegedly used Progressive’s claim portal to report to the insurer that his Sonata had been stolen sometime between January 27 and January 30, 2023. The complaint stated that Roland claimed that he had been driving in an unfamiliar area when the Sonata’s car battery died. Roland allegedly stated that when he returned to the scene three days later, the Sonata was gone. According to the complaint, a Progressive representative subsequently spoke with Roland’s brother-in-law, a Philadelphia police officer. In a recorded interview with the insurer, the brother-in-law allegedly recalled that Roland had contacted him on November 22, 2022, and said that his car had been stolen. According to the complaint, the brother-in-law provided Progressive with copies of Facebook messages that he claimed to have exchanged with Roland on November 22, 2022. The messages allegedly showed that Roland told his brother-in-law that Roland’s car had broken down in Philadelphia and asked his brother-in-law to arrange for a tow. According to the complaint, a Facebook message dated November 29, 2022, indicated that Roland told his brother-in-law that his car had been stolen. According to the complaint, Progressive subsequently asked Roland about the Facebook messages during a recorded statement. Roland allegedly did not deny sending the Facebook messages to his brother-in-law but claimed that he was referring to a different car that was stolen around the same time. According to the complaint, investigators checked with police records and found no reports indicating that another vehicle owned by Roland was stolen during the time period of January 27 through January 30, 2023. Progressive denied the claim. Roland was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt / Theft by Deception (F3), one count of Criminal Use of Communication Facility (F3), and 2 counts of Insurance Application Fraud (M1). |
|
 On October 31, 2023, Jaquil Boggs-Rose was sentenced in Chester County after entering an open plea to one count of Insurance Fraud (F3). Boggs-Rose’s 2012 Hyundai Sonata was added to his mother’s automobile policy with The General Insurance Company on May 26, 2022, at 6:53 PM. On May 30, Boggs-Rose contacted The General and reported that his vehicle had been damaged moments before in a hit-and-run accident. However, the driver of the other involved vehicle had already reported to his own insurer that the accident occurred on May 26, 2022, at 6:08 PM. The other involved driver provided the insurer with photographs that he had taken at the accident scene. The metadata from those photographs and information from the police accident report confirmed that the crash occurred on May 26, 2022, at 6:08 PM, before Boggs-Rose’s Sonata was added to his mother’s policy. Boggs-Rose was sentenced to serve 12 months of probation.
|
 On October 20, 2023, Mark Tyler was sentenced in Montgomery County after entering a guilty plea to a summary count of Disorderly Conduct. On October 15, 2016, Tyler was a passenger in a vehicle that had been involved in a hit-and-run accident in Montgomery County. Both Tyler and the driver filed claims with the insurer, Erie Insurance. As the passenger in the insured vehicle, Tyler’s claim was quickly paid by Erie in the amount of $100,000.00. The investigation determined that while there had been a hit-and-run accident, it had occurred several hours later than the driver of the vehicle that Tyler was a passenger, had been reported and that she was the one who had fled the scene. Tyler made numerous false statements to the insurer and claimed that the other involved vehicle had been the vehicle that fled the accident scene. However, an investigation revealed that the other vehicle remained at the accident scene and the vehicle’s driver called 911 immediately after the accident occurred. Tyler was ordered to pay court costs.
|
|
 On October 6, 2023, Ginger Clapps was sentenced in Montgomery County after entering a negotiated plea to one count of Insurance Fraud (F3) and one count of Insurance Fraud (M1). On March 17, 2021, Clapps secured liability only coverage for a 2004 Mercedes Benz through Progressive Insurance. Clapps called Progressive on March 28, 2022, at 8:04 AM, and stated that she had purchased a 2016 Chevrolet Malibu on March 25, and that while she was driving it on March 26, it was damaged in an accident. A Progressive representative advised Clapps that she could add the Malibu to her current policy, but the coverage would not be retroactive. On March 28, Clapps called Progressive back at 8:17 AM and added the Malibu to her policy with full coverage. At 12:36 PM on March 28, Clapps’ fiancé called Progressive and reported that he had been driving the Malibu and was involved in a single vehicle accident at 11:00 AM that morning. During a recorded interview on April 1, 2022, Clapps told Progressive that she had taken her fiancé to work and was sitting in the parking lot of his workplace when she added the Malibu to her policy. Clapps denied that the vehicle had been involved in any previous accidents or had any prior damage. Clapps told the Progressive representative that the accident involving the Malibu had occurred at approximately 10:00 AM on March 28. When the representative confronted Clapps with the substance of the recorded telephone calls from March 28, Clapps offered no explanation. Clapps eventually admitted to investigators that her fiancé had been driving the Malibu when the accident occurred, and that Clapps thought that her Progressive policy only permitted her to drive the vehicle. Clapps was sentenced to serve 24 months of probation and to complete a Drug and Alcohol Assessment.
|
 On October 6, 2023, Ray Rothfuss III was sentenced in Lycoming County after entering a negotiated plea to one count of Insurance Fraud (M1). On March 6, 2022, Rothfuss reported to Progressive Insurance that he had been operating his 2009 Chevrolet Silverado when it struck a deer earlier that day, damaging the vehicle’s front end. Claim investigators learned that in 2016, Rothfuss had filed a claim with Travelers Insurance for damage to the same Silverado. Travelers paid that claim. Investigators compared photos of the vehicle damage from the prior Travelers claim with recent photos from the Progressive claim and determined that the same damage was present in both sets of photos. Accordingly, investigators determined that the damage pre-dated the Progressive policy and had not been repaired. Rothfuss was sentenced to serve 12 months of probation and to complete 20 hours of community service. He was ordered to pay all court costs.
|
|
 On October 6, 2023, Dwayne Davis was sentenced in Montgomery County after entering a negotiated plea to one count of Insurance Fraud (M1) and one count of Criminal Attempt / Theft by Deception (M1). On June 06, 2021, at approximately 8:25 AM, Dwayne Davis’s 2015 Jeep Grand Cherokee was involved in an accident. Davis contacted Progressive Insurance via the internet on Monday, June 07, at 3:26 PM, and purchased coverage for his Grand Cherokee. On June 08, 2021, at approximately 3:00 PM, Davis used Progressive’s mobile system to report that he had been involved in an accident on June 7, 2021, around 11:00 AM, while driving his Jeep Grand Cherokee. Progressive subsequently conducted a recorded interview with Davis, in which he stated that the accident occurred on June 08, 2021, at approximately 11:00 AM. Davis told the insurer that police were not called to the scene and that there was no police accident report. Davis told the insurer that his Jeep struck a barrier when he tried to avoid colliding with another vehicle. However, Progressive was able to obtain a copy of a police report which revealed that the Jeep had been involved in an accident on June 06, 2021, one day before Davis obtained coverage. The report stated that the responding officer took photos and a video of the vehicle at the crash site. When Progressive conducted a second recorded interview with Davis, he stated that the Jeep was not damaged prior to the inception of his coverage. But when the Progressive representative advised that the police accident report indicated that the Jeep had been involved in a crash on June 6, Davis disconnected the phone call. Davis was sentenced to serve 24 months of probation and ordered to pay a $500.00 fine to IFPA. |
|
|
Accelerated Rehabilitative Disposition (ARD)
|
|
|
During the month of October, 6 additional defendants received Accelerated Rehabilitative Disposition (ARD).
|
|
Anti-Fraud Compliance
Reporting of Insurance Fraud to Law Enforcement Agency
|
|
|
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.
|
|
|
|
