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Additional Defendant Arrested in Statewide Vehicle Fraud / Theft Case
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 On July 26, 2023, criminal charges were filed in Dauphin County against Osiris Fernandez Gonzalez. Gonzalez’s arrest was the most recent in a series of arrests recommended by the 47th Statewide Investigating Grand Jury, following a lengthy investigation into illegal activity involving vehicles in Pennsylvania. According to written presentments issued by the Grand Jury in 2022, the investigation was 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 charging documents alleged that in many instances, out-of-state salvage vehicle titles were “flipped” to Pennsylvania salvage titles, then fraudulently converted to Pennsylvania reconstructed vehicle titles. The presentments detailed numerous instances in which applications for Pennsylvania reconstructed vehicle titles contained false statements or fraudulent documentation indicating that the vehicles had been examined by certified enhanced safety inspectors and deemed to be roadworthy, when in fact many of the vehicles were never seen by the inspectors. Gonzalez was charged with one count of Dealing in Proceeds of Unlawful Activity (F1), one count of Criminal Conspiracy (F1), four counts of Corrupt Organizations (F1), one count of Washing Vehicle Titles (F3), one count of Tampering with Public Records or Information (F3), one count of Receiving Stolen Property (F3), one count of Insurance Fraud (F3), one count of Theft by Deception (F3), one count of False Application for Certificate of Title or Registration (M1), one count of Altered, Forged, or Counterfeit Documents (M1), and one count of Unsworn Falsification to Authorities (M1). |
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 On July 26, 2023, Maritza Cruz was arrested in Dauphin County. According to the criminal complaint, on July 14, 2022, at 6:45 PM, Cruz reinstated her automobile insurance policy with Progressive Group of Insurance Companies (Progressive) for her 2013 Chevrolet Traverse. On July 18, 2022, Cruz allegedly filed a claim with Progressive, stating that her insured vehicle had been involved in an accident with another vehicle on July 15 at 6:30 PM. However, the complaint stated that according to the other involved driver; the crash occurred on July 14 at 6:30 PM. In a second statement to Progressive, Cruz allegedly reaffirmed that the accident occurred on either July 15th or 16th, after the policy was reinstated. According to the complaint, Cruz eventually admitted to investigators that she had obtained the policy after the accident occurred. Progressive denied the claim. Cruz was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F3). |
 On July 25, 2023, Michelle Marvon and Zachary Cool were arrested in Adams
County. Accord ing to the criminal complaint, on June 27, 2022, Cool, who was Marvon’s fiancé, acquired an Esurance full coverage policy for his 2003 Ford Crown Victoria. An Esurance representative allegedly told Cool that the new policy would become effective on June 28, 2022, at 12:01 AM. The complaint stated that Marvon subsequently called the insurer and canceled the policy at 7:03 PM on June 27. She then allegedly obtained a new Esurance policy that became effective at 7:20 PM. According to the complaint, Marvon and Cool each told the insurer during the application process that the Crown Victoria was not involved in any prior losses. On June 28, Cool allegedly called Esurance and claimed that his Crown Victoria had been involved in a two-vehicle accident at approximately 6:00 PM on June 27, after Cool initially obtained coverage from Esurance at 5:29 PM, which was subsequently canceled. According to the complaint, a police accident report indicated that the crash was reported at 5:29 PM, prior to the inception of the Esurance policy. Esurance denied the claim. Marvon was charged with Criminal Conspiracy (F3) and Insurance Fraud (M1). Cool was charged with Insurance Fraud (F3), Theft by Deception (F3), Criminal Conspiracy (F3), and Insurance Fraud (M1). |
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 On July 25, 2023, Lashawna Payne was arrested in Chester County. According to the criminal complaint, at approximately 9:30 AM on April 24, 2021, Payne’s Nissan Rogue SUV was involved in a minor accident with a cement truck. At approximately 9:56 AM, Payne allegedly filed an online claim with her vehicle insurer, Progressive Insurance. The complaint stated that Payne reported that she had been driving her Nissan Rogue when it was struck by a cement truck. Payne allegedly claimed that the truck then left the accident scene. However, according to the complaint, footage from the cement truck’s mobile video recorder showed Payne’s vehicle illegally crossing over a merge area and attempting to pull in front of the cement truck. The video also allegedly showed the truck striking the Nissan’s rear quarter panel and bumper, after which the Nissan fled the accident scene. The complaint stated that in addition to the video, two witnesses corroborated the sequence of events leading up to the crash. Progressive denied the claim. Payne was charged with Insurance Fraud (F3), Criminal Use of Communication Facility (F3), and False Reports to Law Enforcement (M2), as well as vehicle code offenses arising from the hit-and-run crash itself. |
 On July 24, 2023, Fantasia Williams was arrested in Washington County. According to the criminal complaint, on December 20, 2022, at 11:45 AM, Williams purchased a Progressive Insurance policy for her 2009 Saturn Vue. On December 21, 2022, at 11:06 AM, Williams allegedly filed a claim with Progressive, reporting that she had been driving her Saturn when it was involved in an accident. According to the complaint, Williams told the insurer that the wheel of her car locked up, causing the Saturn to strike a telephone pole. During a recorded interview with Progressive, Williams allegedly stated that the accident had occurred at 8:00 AM on December 21. Investigators contacted the police department and tow company which had responded to the accident scene. According to the complaint, the police crash report and the tow company receipt indicated that the responders were dispatched to the crash scene at 11:27 AM on December 20, 2022, before Williams purchased her vehicle coverage. The complaint further stated that according to the police report, Williams was not the driver of her vehicle when the crash occurred. Progressive denied the claim. Williams was charged with Insurance Fraud (F3) and Criminal Attempt / Theft by Deception (F3). |
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 On July 24, 2023, Jorge Cerda was arrested in Berks County. According to the criminal complaint, Cerda filed a claim with Donegal Insurance on February 2, 2022, and reported that his 2012 Dodge Ram 5500 ST was involved in an accident the previous day. Cerda allegedly told the insurer that another vehicle ran over the aluminum bed of his truck, damaging the truck’s frame. To substantiate his claim, Cerda allegedly provided Donegal with two invoices, including an invoice for parts purportedly purchased from Schatter’s Auto Picking in Havre de Grace, Maryland. According to the complaint, an investigation revealed that Schatter’s did not exist. During an interview with investigators, Cerda allegedly admitted that he did not purchase the parts, and that he had created the bogus invoice which he submitted to Donegal. Cerda was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt / Theft by Deception (F3), and one count of Forgery (M1). |
 On July 17, 2023, Zamere Howard was arrested in Montgomery County. According to the criminal complaint, on November 3, 2021, Howard purchased a 2000 Chevrolet Blazer. The complaint further stated that registration paperwork filed with PennDOT indicated that the Blazer was not insured. At 11:38 PM on July 18, Howard allegedly accessed the Progressive Insurance app and added the Blazer to his Progressive vehicle policy. The complaint stated that on July 20, 2022, at 1:39 PM, Howard filed a claim with Progressive, reporting that the Blazer was involved in a single vehicle accident at approximately 11:28 PM on July 18, 2022. Investigators requested and reviewed Howard’s cell phone records, which allegedly revealed that Howard made several phone calls to AAA and two calls to Wade Insurance Agency on July 18. The complaint stated that when a Progressive representative interviewed Howard about the crash, Howard insisted that he had called AAA that day to check on a different vehicle that was being worked on at an AAA service center. According to the complaint, investigators determined that the number called from Howard’s phone at approximately 7:50 PM on July 18 was not the number for a service center, but rather was the 800 number for AAA’s roadside assistance. The investigation allegedly revealed that the crash involving Howard’s Blazer occurred several hours before Howard added the vehicle to his Progressive policy. Progressive denied the claim. Howard 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 Communication Facility (F3). |
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 On July 14, 2023, Kenya Davis was arrested in Allegheny County. According to the criminal complaint, on July 23, 2021, at approximately 2:33 PM, Davis purchased a new full coverage vehicle policy from Esurance. The complaint further stated that on July 26, Davis called Esurance and reported that she had been backing her vehicle out of a parking space when it collided with another vehicle at approximately 4:00 PM on July 23. However, the driver of the other involved vehicle allegedly contacted his own insurer, Progressive Insurance, at 1:41 PM on July 23, and filed a claim for the accident. In support of his claim, the other driver allegedly provided Progressive with a photograph taken at the accident scene. According to the complaint, investigators reviewed the photo’s metadata, which revealed that the accident actually had occurred approximately an hour before Davis purchased her vehicle coverage from Esurance. During an interview conducted by investigators, Davis allegedly admitted that she insured her vehicle after the accident occurred but had told Esurance that the crash happened after her coverage was in place. Esurance denied the claim. Davis was charged with one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F3). |
 On July 13, 2023, Mark Gamble was arrested in Westmoreland County. According to the criminal complaint, Gamble was operating his 2002 Honda Civic on January 16, 2023 between 6:00 AM and 7:00 AM, when it rear-ended a 2022 Toyota Tacoma. Gamble allegedly provided the other driver and responding police with documentation indicating that his vehicle was insured by an Erie Insurance policy. The complaint stated that Gamble contacted Erie later that same day to make a payment for his vehicle coverage, which had lapsed. While reinstating the lapsed policy, Gamble allegedly denied that his vehicle had been damaged or involved in any accidents. According to the complaint, the driver of the Toyota Tacoma contacted Erie to file a claim for damage to his vehicle, but was advised that Gamble’s coverage was not in effect at the time of the accident. Gamble allegedly admitted during a recorded interview with Erie that he knew that his coverage was not in effect at the time of the crash, and that he had provided invalid insurance information to the other driver and to police. The complaint stated that the driver of the other involved vehicle subsequently contacted his own insurer, California Casualty, and filed a claim. The insurer deemed the Tacoma to be a total loss. Gamble was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt / Theft by Deception (F3), and one count of Insurance Fraud (M1). |
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 On July 12, 2023, Lawrence Dolby, Jr. was arrested in Allegheny County. According to the criminal complaint, on April 7, 2022, at 8:03 PM, Dolby filed an online claim with State Farm Insurance for a wedding ring that purportedly had been lost since April 1, 2022. When State Farm contacted Dolby the following day, he allegedly stated that his wife was unsure when the loss occurred, but that the couple had been unable to locate the ring. According to the complaint, State Farm made an electronic payment to Dolby in the amount of $5,000.00 on April 8. On March 3, 2023, State Farm received a call from Dolby’s ex-wife. According to the complaint, the ex-wife advised that she had heard that Dolby filed a claim for her “missing” wedding ring. Dolby’s ex-wife allegedly maintained that the ring was not lost and was in her possession. When investigators interviewed Dolby, he allegedly admitted that he had filed a claim for the ring with State Farm and had received $5,000 from the insurer as a result. According to the complaint, the investigation revealed that the ring was never lost, and that Dolby knew that when he filed the claim. Dolby was charged with one count of Insurance Fraud (F3) and one count of Theft by Deception (F3). |
 On July 12, 2023, Damian Scarlett was arrested in Chester County. According to the criminal complaint, on January 14, 2021, Progressive Insurance informed Scarlett that if he did not provide the insurer with documentation of his current Pennsylvania residency, the coverage for Scarlett’s BMW X2 would cancel on February 1, 2021. On January 20, Scarlett allegedly emailed a copy of a paystub to Progressive. According to the complaint, the paystub purportedly showed that Scarlett was employed by “Prestige HHC” during the time period of December 27, 2020, through January 9, 2021, and that his Pennsylvania address was current. The complaint stated that on February 16, 2021, Scarlett was involved in a two-car accident in New York City. He allegedly pursued an insurance claim for damages to his BMW and for medical expenses that he purportedly incurred as a result of the accident. The occupants of the other involved vehicle allegedly pursued bodily injury claims against Scarlett’s Progressive policy. According to the complaint, Progressive conducted an investigation into Scarlett’s state of residence. Investigators contacted Scarlett’s purported employer, Prestige Home Care. Prestige allegedly denied that Scarlett was employed by the company and advised investigators that the paystub Progressive received from Scarlett was not genuine. Scarlett was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt / Theft by Deception (F3), one count of Unlawful Use of Computer (F3), one count of Insurance Fraud (M1), one count of Forgery (F3), and one count of Theft by Deception (F3). |
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 On July 11, 2023, Olivia Law was arrested in Allegheny County. According to the criminal complaint, on January 31, 2023, at 6:35 AM, police were dispatched to the scene of a reported hit-and-run incident. The investigating officer subsequently met with Law and explained that he had taken a report from the alleged driver of the vehicle that damaged Law’s 2016 Ford Fusion. According to the complaint, Law advised the officer that she currently did not have insurance coverage for the Fusion. Shortly after meeting with the officer, Law allegedly contacted Progressive Insurance and asked the insurer to reinstate her lapsed vehicle policy. According to the complaint, Law told the Progressive representative that her Ford Fusion had not been involved in any accidents and had not sustained any damage during the lapse in coverage. Progressive reinstated Law’s policy. According to the complaint, on February 2, Law filed a claim with Progressive for damage to her Ford Fusion that resulted from a hit-and-run accident. Law allegedly claimed that she had parked the car in front of her apartment complex at approximately 6:00 PM on February 1, and when she returned the next morning, she discovered that the Fusion’s left rear tire and bumper had been damaged. The complaint stated that investigators obtained a copy of the police incident report, which stated that the accident had occurred on January 31, before Law had reinstated her lapsed Progressive policy. Progressive denied the claim. Law was charged with one count of Insurance Fraud (F3), one count of Criminal Attempt / Theft by Deception (F3), and one count of Insurance Fraud (M1). |
 On July 6, 2023, Jean Martinez-Castillo was arrested in Philadelphia County. According to the criminal complaint, on February 3, 2022, at approximately 12:08 PM, Castillo called Progressive Insurance Company and claimed that his 2006 Yellow Freightliner Columbia truck and trailer were damaged in an accident at approximately 9:00 PM on February 2. Castillo allegedly told Progressive that an employee had been operating the truck at the time of the accident. The complaint stated that on February 8, 2022, a Progressive representative contacted Castillo and asked him to provide the insurer with relevant documentation, including invoices for any work performed on the truck and trailer, tow yard invoices, and a copy of the vehicle’s title paperwork. The complaint further stated that on February 21, Progressive received an invoice from a diesel repair company which was dated August 5, 2022. The invoice number allegedly matched that of an invoice that Progressive previously had received from Castillo. However, according to the complaint, the invoice from Castillo included a charge for a rebuilt engine; no such charge appeared on the diesel repair company’s invoice. The diesel repair company allegedly confirmed that it did not create the invoice that Progressive had received from Castillo. Progressive denied the claim. Castillo 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), one count of Forgery (F3), and one count of Application Fraud (M1). |
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 On July 6, 2023, Justin Heck was arrested in Berks County. According to the criminal complaint, Heck was a licensed producer for Allstate Insurance Company. Allstate allegedly received two customer complaints which prompted the insurer to conduct an audit of policies written by Heck. Allstate allegedly suspected that Heck had been writing fictitious policies in order to artificially inflate the amount of bonus compensation that he would receive. The insurer provided investigators with a total of 150 Allstate policies, many of which were renter’s policies, which Heck allegedly had written between January and June 2022. The investigators reviewed a sample of those policies and, according to the complaint, determined that many contained bogus telephone numbers for the purported policyholders. The complaint further stated that when they were interviewed, most of the purported policyholders told investigators that they had obtained a rate quote from Allstate, but ultimately, they had purchased their policy from another insurer. When investigators interviewed Heck, he allegedly denied intentionally writing fictitious policies in order to improperly obtain bonus compensation. Heck was charged with one count of Insurance Fraud (F3), one count of Forgery (F3), and one count of Unlawful Use of Computer (F3). |
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 On July 31, 2023, Dejuan White was sentenced in Philadelphia County after entering a negotiated plea to one count of Insurance Fraud (M1). At 4:28 PM on January 29, 2021, White purchased an automobile insurance policy from Progressive Insurance for his 2005 Ford Freestyle. At 5:53 PM that same day, White called Progressive and claimed that while he was securing the coverage, the Ford was involved in a two-vehicle accident in Philadelphia. During a recorded statement with Progressive, White reported that the accident had occurred between 5 PM and 6 PM on January 29, after the policy was in effect. During the investigation, White maintained that the accident occurred after he purchased the policy. However, the metadata from digital photos that White provided to Progressive indicated that the photographs were taken more than two hours before the inception of White’s coverage. White was sentenced to serve two years of probation and ordered to complete 50 hours of community service. He was also ordered to pay a civil fine of $500.00 to the PA Insurance Fraud Prevention Authority. |
 On July 25, 2023, Thomas Scheeren was sentenced in Armstrong County after entering an open plea to one count of Insurance Fraud (F3) and one count Theft by Failure to Make Required Disposition of Funds (M1). An investigation began when the Insurance Department received numerous complaints concerning Scheeren, who owned the Scheeren Insurance Group. The investigation revealed that Scheeren had misappropriated or failed to remit more than $12,000.00 in premium payments to various insurance companies, falsified insurance documents, and continued to conduct business as an insurance agent after his agent license expired on May 31, 2020. The investigation identified four customers who, beginning in April 2016, remitted insurance premium payments to Scheeren, then subsequently discovered that they had no coverage. The insurance companies confirmed that the policies in question did not exist, or that the insurers had not received the premium payments from Scheeren. An investigation revealed that some of the premium funds had been deposited into agency accounts but had not been remitted to the insurance companies. When interviewed, Scheeren admitted that he received insurance premium payments from the victims, but he was unable to explain why the policies did not exist. Scheeren was sentenced to serve 36 months of probation. He was ordered to complete 50 hours of community service, pay a fine of $800.00, and all court and prosecution costs. |
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 On July 18, 2023, Marlon Allen was sentenced in Philadelphia County after entering a negotiated plea to one count of Insurance Fraud (M1). On April 5, 2022, Allen purchased a Progressive Insurance policy for his 2015 Mercedes-Benz C300. On May 26, 2022, at 9:46 AM, Allen called the insurer and requested that his comprehensive and collision policy deductibles be reduced from $2,000.00 to $100.00, effective May 31, 2022. On May 31, 2022, at 1:10 AM, Allen reported to Progressive that his parked Mercedes was damaged minutes earlier, apparently by a hit-and-run driver. Allen emailed photos of the damage to Progressive. In reviewing the photos, the investigators noted that the pictures of the vehicle were taken during broad daylight, rather than at night when the crash purportedly occurred. In viewing the photos, the investigators also noticed what appeared to be “touch-up” paint covering the damaged area of the Mercedes. The investigators then compared the photos with pictures that Allen had provided to the insurer when his initial policy was bound on April 5, 2022, and determined that the same damage and “touch-up” paint application was present in both sets of photos. Allen was sentenced to serve two years of probation and ordered to complete 50 hours of community service. He was further ordered to pay a $500.00 civil penalty to the Insurance Fraud Prevention Authority and to pay all court costs. |
 On July 18, 2023, Devin Collins was sentenced in Butler County after entering a negotiated plea to one count of Criminal Attempt / Theft by Deception (M1). On April 21, 2021, Collins filed a claim with GEICO, in which he stated that his 2011 BMW was damaged when it struck a parked car on April 20, 2021. Collins later told the insurer that the damage occurred when his BMW struck a tree. Investigators found that Collins had filed a prior claim with GEICO on December 11, 2020, which involved similar damages to the BMW. GEICO representatives compared photographs from both claims and concluded that the damage was identical. Collins eventually admitted to investigators that he had filed a “double claim”, hoping that GEICO would pay him additional money. Collins was sentenced to serve 24 months of supervised probation and ordered to complete 100 hours of community service. He was further ordered to pay all supervision costs, and to pay a fine of $100.00. |
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 On July 17, 2023, Prince Ellis was sentenced in Berks County after entering an open plea to one count of Insurance Fraud (F3) and one count of Criminal Attempt / Theft by Deception (F2). A fire ravaged Ellis’s mobile home in December 2020, rendering it uninhabitable. In January 2021, Ellis purchased a mobile home policy from Foremost Insurance, a subsidiary of Farmers Insurance. During the application process, Ellis denied that his mobile home had incurred any prior damage or losses. Foremost then issued the policy, which included coverage for the cost of repairs and replacement costs for the home and contents. In May 2021, Ellis called Foremost and reported his mobile home was damaged by fire earlier that month. Ellis submitted photos of the damage to Farmers in support of his claim. Metadata from the photos revealed that the pictures were taken in January 2021. Emergency responders and witnesses confirmed that Ellis’s mobile home had burned in December 2020, which was prior to the inception of the Foremost Insurance policy. Ellis was sentenced to serve four years of probation and ordered to pay restitution in the amount of $4,473.06. |
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Accelerated Rehabilitative Disposition (ARD)
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During the month of July, 6 additional defendant received Accelerated Rehabilitative Disposition (ARD).
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Anti-Fraud Compliance
Reporting of Insurance Fraud to Law Enforcement Agency
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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.
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