|
New Yorker Sentenced for Illegally Titling and Registering More Than 1200 Vehicles in PA
|
|
 On February 28, 2024, Jose Mena-Mejia was sentenced in Dauphin County, after entering a negotiated plea to one count of Tampering with Public Records (F3), one count of Title Washing (F3), and one count of Theft by Deception (F2). The investigation was a joint effort between the Pennsylvania State Police Eastern Auto Theft Task Force and the Office of Attorney General’s Insurance Fraud Section. Initially, the Auto Theft Task force began an investigation concerning a Pennsylvania registration plate issued to Mena-Mejia. Investigators obtained records from PennDOT, which revealed more than 1,200 vehicles that were registered in Pennsylvania to Mena-Mejia. Investigators also discovered that Mena-Mejia had filed multiple claims with different Pennsylvania insurers, including Esurance, General Insurance, and Safe Auto, for losses that had occurred in New York. Although Mena-Mejia lived in New York, investigators found that Mena-Mejia used a fabricated Pennsylvania address on paperwork sent to PennDOT, in order to obtain Pennsylvania vehicle titles and registrations. When Esurance investigators spoke with Mena-Mejia, he provided his New York address, but made no mention of any residence in Pennsylvania. During subsequent questioning by law enforcement investigators, Mena-Mejia admitted that he had lived in New York during the previous 12 years. Mena-Mejia also advised that he used his name to title and insure most of the vehicles for people who lived in the New York area and had recently obtained a driver’s license, learner’s permit, or had no license at all. Mena-Mejia claimed that he did not know that using his name to title, register, and insure vehicles in Pennsylvania for persons living in New York was illegal. Mena-Mejia was sentenced to serve an aggregate term of 9 years of probation. He was ordered to pay $100,000.00 in restitution to the Triborough Bridge and Tunnel Authority. He was further ordered to pay $1,000.00 to the Insurance Fraud Prevention Authority and $150.00 in fines and costs. Mena-Mejia was also required to perform 50 hours of community service. |
|
 On February 29, 2024, Tobie Matheny was arrested in Delaware County. According to the criminal complaint, on June 2, 2022, Matheny bought a six-month auto policy from Erie Insurance for a 2008 Honda Accord. At the time, Matheny allegedly indicated that he was the sole owner of the Honda, that he and his live-in girlfriend were the only two drivers of the vehicle, and that the car was garaged at Matheny’s address in Philadelphia. The complaint stated that on July 25, 2022, Matheny reported to the Philadelphia Police Department and to Erie Insurance that the car was stolen from his house in Philadelphia. He allegedly told both the police and Erie that the car was parked in front of his home on the evening of July 24 and that he discovered it missing at 10:00 AM the following morning. Matheny allegedly advised that the only key to the Honda either was left in the car, or had been dropped on the ground near where the Accord had been parked. On September 8, 2022, Erie paid Matheny a total of $12,370.36 to settle the claim. The complaint stated that in late September, Matheny’s ex-wife learned that Matheny had reported the car stolen and she immediately called Erie’s fraud hotline. The complaint stated that a series of text messages between Matheny and his ex-wife revealed that Matheny knew that the car was at his ex-wife’s house. Shortly after Matheny’s ex-wife contacted Erie, police in Delaware allegedly confirmed that the Honda Accord was at the ex-wife’s home. The complaint stated that Erie arranged to have the vehicle towed and obtained the car’s key from Matheny’s ex-wife. During an interview with investigators, Matheny’s ex-wife allegedly stated that, although the car was titled in Matheny’s name, her son paid for the car, was the only driver, and never left the vehicle at Matheny’s house. According to the complaint, Matheny's ex-wife also told investigators that Matheny knew that her son left the car at her house when he departed for military training, shortly before Matheny reported the vehicle stolen. Matheny was charged with one count of Insurance Fraud (F3), one count of Insurance Fraud (M1), one count of Theft by Deception (F3), one count of Criminal Use of a Communication Facility (F3), one count of False Reports to Law Enforcement Authorities (M3).
|
 On February 28, 2024, Camren Hall was arrested in Lancaster County. According to the criminal complaint, on September 21, 2022, at 12:01 AM, Hall went online and purchased coverage from Progressive Insurance for a 2020 Hyundai Veloster. On December 1, Hall allegedly contacted Progressive and advised that the Veloster had been involved in a three-vehicle accident earlier that day. According to the complaint, Hall asked the representative whether, in light of his policy’s coverage, it would be worthwhile for him to file a claim for the accident. The complaint stated that no official claim was made at that time. At 10:01 AM the next day, Hall allegedly called Progressive and added comprehensive coverage to his existing policy. According to the complaint, on December 13, 2022, Hall used his Android mobile device to file a claim for damage to the Hyundai. In doing so, he allegedly told the Progressive representative that at approximately 9:00 PM on December 11, 2022, the Hyundai was involved in a deer strike, which damaged the car’s front bumper, grill and passenger side headlamp. According to the complaint, a Progressive investigator subsequently telephoned Hall and questioned him about the December 1, 2022, phone call in which Hall allegedly advised Progressive that the Veloster had been damaged in a three-vehicle accident. The complaint stated that Hall argued with the investigator, and then stated that he would finish repairing the Veloster himself. Progressive allegedly determined that the car was damaged before Hall added comprehensive coverage to the policy. The claim was denied. Hall was charged with one count of Insurance Fraud (F3).
|
|
 On February 27, 2024, Adam Pfiester was arrested in Blair County. According to the criminal complaint, Pfiester filed a claim with Progressive Insurance on August 31, 2023, and advised that he had been driving his 2016 Mitsubishi Outlander earlier in the day when he swerved to avoid striking a deer. Pfiester allegedly reported that his Mitsubishi went into a ditch, damaging the vehicle’s transmission. During a recorded phone call, Pfiester allegedly told Progressive that his vehicle had no mechanical issues at the time of the deer strike. The complaint stated that on September 8, 2023, an appraiser inspected the vehicle and found no physical damage to the Outlander’s transmission. According to the complaint, investigators obtained a service document from Five Star Mitsubishi, dated August 8, 2023. The document allegedly indicated that Pfiester brought the Outlander to the service department to obtain an estimate for the repair of certain mechanical issues. According to the complaint, the service department recommended that Pfiester replace the Outlander’s transmission. The service department allegedly estimated the cost of a used transmission at $8,020.00, and the cost of a new transmission at $9.740.10. The complaint stated that Pfiester retrieved the Outlander from the service department on August 10, 2023, without having repairs made. During a second recorded interview with investigators, Pfiester allegedly acknowledged that the Outlander had transmission issues and that he knew it was wrong to file a deer strike claim to cover the cost of pre-existing mechanical problems. Progressive denied the claim. Pfiester was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F3).
|
 On February 27, 2024, Jeffery Fitzgerald was arrested in Chester County. According to the criminal complaint, on November 27, 2022, at approximately 7:53 AM, Fitzgerald’s 2013 gray Nissan Maxima was involved in a hit-and-run accident. The police crash report allegedly stated that the Maxima struck a parked vehicle and that its driver fled the scene on foot. The complaint stated that West End Towing and Storage removed the vehicle from the scene. According to the complaint, on November 30, 2022, Fitzgerald purchased a full coverage Progressive Insurance policy for his 2013 Nissan Maxima. At 11:36 AM on December 4, 2022, Fitzgerald allegedly used Progressive’s phone application to report that he was the victim of a different hit-and-run crash. During subsequent interviews, Fitzgerald allegedly gave varied and inconsistent dates of explanations for the crash. Investigators obtained copies of the police accident report and the tow invoice from West End Towing and Storage, which allegedly revealed that the Maxima was removed from the crash scene and was taken to a tow yard, where it remained from November 27, 2022, until December 10, 2022. The claim was denied. Fitzgerald 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 February 20, 2024, Joseph Sims was arrested in Berks County. According to the criminal complaint, on October 25, 2022, at 3:21 PM, Exeter Township Police Department responded to a three-vehicle accident in Berks County. At 3:35 PM that day, Sims allegedly purchased liability coverage for his 2008 Jeep Liberty from Viking Insurance Company of Wisconsin (VICOW), a member of Sentry Insurance Mutual Company. The complaint stated that when he purchased the new policy, Sims told the insurer that his vehicle had no prior damage and had not been involved in any accidents. During a recorded call with VICOW on October 27, 2022, Sims allegedly stated that his son had been driving the 2008 Jeep Liberty when it was involved in a three-vehicle accident. The complaint stated that Sims told the insurer that the accident occurred after his coverage was in place. According to the complaint, investigators obtained a copy of the police crash report, which revealed that the accident actually occurred at 3:21 PM on October 25, shortly before Sims purchased insurance for the Jeep. The insurer denied Sims’s claim. Sims was charged with one count of Insurance Fraud (F3) and one count of Insurance Fraud (M1).
|
 On February 20, 2024, Sierra Young was arrested in Montgomery County. According to the criminal complaint, on February 24, 2023, at 6:38 PM, police from Upper Darby responded to the scene of a two-vehicle automobile accident involving a 2011 Mazda CX-7 driven by Young. Young allegedly telephoned Progressive Insurance at approximately 6:24 PM and purchased an automobile policy for her Mazda CX-7 that went into effect at 6:42 PM. According to the complaint, in the recorded conversation of her policy purchase, Young was heard repeatedly discussing the accident with the other involved driver. The complaint further stated that when she purchased the coverage, Young failed to mention to Progressive that the Mazda had been damaged in an accident minutes earlier. On February 25, 2023, the other involved driver contacted Progressive to file a claim for the accident. The driver allegedly stated that the accident occurred at approximately 6:30 PM on February 24, and that the police were called to the scene of the crash. The other driver, whose vehicle was insured by Travelers Insurance, allegedly told Progressive that Young had already filed a claim with Travelers. According to the complaint, when Young filed the claim with Travelers, she told the representative that the accident occurred at 6:10 pm. On February 27, 2023, Progressive investigators conducted a recorded interview with Young, during which she allegedly confirmed that the accident occurred at approximately 6:10 PM on February 24. When investigators questioned Young about the time of the accident in relation to when she purchased coverage, Young allegedly was unable to explain the time discrepancy. Progressive denied the claim. Young 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), and one count of Insurance Fraud (M1).
|
|
 On February 8, 2024, Alexus Strong-Schultz was arrested in Montgomery County. According to the criminal complaint, Strong-Schultz purchased a Progressive Insurance policy for her 2020 Mitsubishi Eclipse on November 17, 2021. On December 25, 2021, she allegedly was driving the Eclipse in Georgia when it rear-ended another vehicle. The complaint stated that the Mitsubishi’s hood and bumper were damaged by the crash. According to the complaint, local police documented the damage in an accident report, which included photos. On January 21, 2022, Strong-Schultz allegedly added collision and comprehensive coverage to her existing Progressive auto policy. According to the complaint, on January 28, 2022, Strong-Schultz used the Progressive mobile app to report that she had been driving her Eclipse in Philadelphia earlier that morning when the car rear-ended another vehicle. Strong-Schultz allegedly provided the insurer with a statement that included photographs of the vehicle and denied that the Eclipse had been in any prior accidents. However, the complaint stated that investigators later determined that the damage depicted in the photographs was consistent with that of the prior Georgia crash. According to the complaint, Strong-Shultz initially denied any involvement with the earlier accident. Progressive denied payment of the claim. Strong-Schultz 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 February 8, 2024, Stefaura Prince was arrested in York County. According to the criminal complaint, on July 27, 2022, at 3:19 PM, Prince obtained a liability policy from Progressive Insurance for her 2013 Kia Forte. On July 28, 2022, Prince allegedly called Progressive and tried to add full coverage to her policy. During the conversation, Prince allegedly told the representative that the Kia had been involved in an accident. The complaint stated that the representative informed Prince that she could add full coverage to her policy, but the additional coverage would not apply to any prior accidents. The complaint stated that Prince waited until August 4, 2022, to add comprehensive and collision coverage. According to the complaint, Prince allegedly contacted Progressive on August 23, 2022, and claimed that her Kia had been in an accident during the previous week. When the representative asked her for details, Prince allegedly said that her Kia was involved in a rear-end collision and was badly damaged. According to the complaint, Prince told the representative that she could not remember where the accident occurred. The complaint stated that investigators ultimately determined that the damage to Prince’s Kia occurred on July 27, 2022, before Prince purchased the coverage from Progressive. The claim was denied. Prince 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 February 28, 2024, Robert Ellis was sentenced in Erie County after entering an open plea to one count of Theft by Unlawful Taking or Disposition (M1). On August 4, 2022, at 5:50 PM, Ellis called 911 and reported the theft of a 2011 Volvo XC60. On May 8, 2023, Erie Police received an anonymous tip, which indicated that the stolen Volvo was parked in the rear yard at West 17th Street in Erie. Authorities executed a search warrant at the property and recovered the vehicle. During the course of the automobile theft investigation, it was determined that Ellis lived at the address on West 17th Street and that his daughter owned and insured the Volvo through GEICO. Police contacted GEICO and learned that on August 10, 2022, Ellis had contacted GEICO claims and reported the Volvo stolen. An audio recording of the call revealed that Ellis provided details of the theft and described property that purportedly was inside the vehicle at the time. Claim records showed that GEICO issued a claim payment to the insured in the amount of $7,902.84. Investigators went to the West 17th Street address and spoke to Ellis. Ellis admitted that he lived at the residence and that he had stolen the Volvo from his daughter because “she made him mad.” Ellis also confirmed that he had called 911 to report the theft and that he had spoken about it with GEICO claims. Ellis was sentenced to three years of probation and was ordered to complete 50 hours of community service. Ellis was also ordered to pay restitution in the amount of $7,902.84 to GEICO, and to pay all court and prosecution costs.
|
 On February 27, 2024, Tracey Hann was sentenced in Fulton County after entering a negotiated plea to one count of Criminal Attempt / Theft by Deception (M1). On April 15, 2022, Hann obtained liability coverage from Progressive Insurance for his 2015 Toyota Corolla. Hann added comprehensive coverage to the vehicle policy on July 7, 2022, with an effective date of July 12. On July 26, 2022, Hann contacted Progressive and informed the representative that he had been driving the Toyota to work that morning, when it struck a deer at approximately 5:00 AM. Hann provided photographs of the damaged vehicle to Progressive. Investigators examined the photo metadata and determined that the pictures had been taken on July 7, which was before Hann added comprehensive coverage to his vehicle policy. Hann was sentenced to serve 24 months of probation. He was ordered to pay all court and supervision costs. |
|
 On February 26, 2024, Victoria Newell-Brown, a/k/a Victoria Stevens, was sentenced in Delaware County after she entered an open plea to one count of Theft by Deception (F2), one count of Insurance Fraud (F3), one count of Perjury (F3), one count of False Swearing (M2), one count of Unsworn Falsification to Authorities (M2), one count of Dealing in Proceeds of Unlawful Activities (F1), one count of Unlawful Use of Computer and Other Computer Crimes (F3), and three counts of Workers’ Compensation Fraud (F3). On June 12, 2018, Newell-Brown reported to her employer, Family Dollar Stores, Inc., that she suffered injuries from a slip and fall accident which occurred while she was working at a Family Dollar store in Philadelphia. Newell-Brown claimed that she was unable to work due to her injuries. The self-insured Family Dollar immediately began paying benefits to Newell-Brown, including medical expenses and $1,500.00 in biweekly total disability lost wage benefits. While Newell-Brown was receiving those benefits, she began working at a restaurant in Newark, Delaware on August 12, 2019. When she applied for the restaurant job, Newell-Brown used her married name, Victoria Stephens. She also provided the restaurant with a different Social Security number than the one that she had provided to Family Dollar. “Stephens” did not inform the restaurant of her employment with Family Dollar, or that she was receiving disability benefits due to a prior injury. On October 18, 2019, “Stephens” reported to the restaurant that she was injured at work when she accidentally slipped and fell. “Stephens” began receiving Delaware total disability workers’ compensation lost wage benefits and did not disclose the fact that she also was receiving lost wage and medical benefits from Pennsylvania. Newell-Brown, a/k/a Stephens, received total disability benefits from both states until investigators discovered her scheme in 2021. In order to maintain her scheme from 2019 through 2021, Newell-Brown repeatedly lied to claim administrators, attorneys for her Pennsylvania employer, the Pennsylvania Department of Labor & Industries, Pennsylvania judges, numerous doctors, her own attorneys, and many others about her health, her work history, her medical history, and her disability claim history. Newell-Brown’s Delaware benefits were terminated in April 2021. She continued to receive Pennsylvania benefits until a Workers’ Compensation court approved the termination of her benefits in February 2022. Newell-Brown was sentenced to serve a period of 5 to10 years in prison. She was ordered to pay $115,125.58 in restitution to Family Dollar and $55,530.40 in restitution to the PA Department of Labor and Industry, Bureau of Workers’ Compensation.
|
 On February 14, 2024, Skyler McLeod was sentenced in Allegheny County after entering a negotiated plea to one count of Criminal Attempt / Theft by Deception (M1). On April 8, 2022, McLeod’s Progressive Insurance automobile policy lapsed. On June 13, 2022, McLeod contacted Progressive Insurance and reinstated the policy covering his 2016 Hyundai Sonata. In doing so, he signed the insurer’s statement of no loss, asserting that his vehicle was not damaged and had not been in any accidents during the lapse period. On June 23, 2022, McLeod filed an accident claim with Progressive for damage to the Sonata. McLeod told the insurer that he had been driving the car on June 21, 2023, when, at approximately 10:30 PM, another vehicle forced his Hyundai off the roadway. McLeod claimed that his car then struck a curb, which caused damage to the Sonata’s passenger side tires and wheels and rendered the vehicle inoperable. McLeod told Progressive that police did not respond to the accident scene. He also claimed that the Sonata was towed to his house following the accident, and was towed to a body shop the next day. However, an investigation revealed that the North Versailles Police Department came upon McLeod’s disabled Hyundai Sonata on June 10, 2022 at 12:28 AM, and requested Allmor Towing to remove the vehicle from the roadway. The tow company confirmed that it received the tow request at 12:41 AM on June 10, which was during the lapse in McLeod’s insurance coverage. Progressive denied payment of the claim. McLeod was sentenced to serve 12 months of probation and was ordered to pay all court and supervision costs. |
|
 On February 12, 2024, Stephanie Carbaugh was sentenced in Adams County after entering a negotiated plea to one count of Insurance Fraud (F3). 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 called Progressive and added comprehensive coverage for her 2009 Honda Civic. On December 10, 2022, at 10:39 PM, Carbaugh contacted the insurer and reported that her Honda was involved in an accident at approximately 9:00 PM that evening. Carbaugh claimed that while driving her Honda, she swerved to avoid hitting a deer. She told the insurer that this caused her vehicle to leave the roadway and resulted in extensive front-end damage to the Honda. However, Progressive investigators obtained a Car Fax report that revealed that Carbaugh’s Honda struck a stationary object in Thurmont, Maryland on November 22, 2022. Thurmont police confirmed that the crash occurred at 5:22 AM on that date. Police advised that Carbaugh had been driving the car at the time of the accident and was charged with Driving Under the Influence. Investigators obtained a tow company invoice that confirmed that the Honda had been towed from the accident scene on November 22, several days before Carbaugh added comprehensive and collision coverage to her policy. Carbaugh was sentenced to serve two years of probation. She was fined $200.00 and was ordered to pay all court costs. |
 On February 5, 2024, Frantz Roland was sentenced in Montgomery County after entering a negotiated plea to one count of Insurance Fraud (M1). Roland purchased a policy for his 2011 Hyundai Sonata from Progressive Insurance at 5:29 PM on December 1, 2022. At 10:07 PM on January 30, 2023, Roland used Progressive’s claim portal to report that his Sonata was stolen sometime between January 27 and January 30, 2023. Roland claimed that he had been driving in an unfamiliar area when the Sonata’s car battery died and when he returned to the scene three days later, the Sonata was gone. A Progressive representative subsequently spoke with Roland’s brother-in-law, a Philadelphia police officer. During a recorded interview, the brother-in-law told the insurer that Roland contacted him on November 22, 2022, and advised that his car had been stolen. The brother-in-law provided Progressive with copies of Facebook messages that he had exchanged with Roland on that date. The messages indicated that Roland told his brother-in-law that the car had broken down in Philadelphia and that Rowland needed his brother-in-law to arrange for a tow. Another Facebook message, dated November 29, 2022, indicated that Roland told his brother-in-law that his car had been stolen. Progressive subsequently asked Roland about the Facebook messages during a recorded statement. Roland did not deny that he sent the Facebook messages to his brother-in-law, but claimed that he had been referring to another car that was stolen around the same time. Investigators checked with police and found no reports indicating than another vehicle belonging to Rowland was stolen during that time period. Roland was sentenced to serve two years of probation. He was ordered to pay a $250.00 fine to the Insurance Fraud Prevention Authority and to pay all court costs.
|
|
|
Accelerated Rehabilitative Disposition (ARD)
|
|
|
During the month of February, 7 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.
|
|
|
|
