Pennsylvania Fraud Stories - PDF document

1 Pennsylvania Fraud Stories Message fro
Pennsylvania Fraud Stories Message from the Executive Director MARCH 2019 Inside this issue: Pennsylvania Insurance Fraud Prevention Authority Ralph Burnham IFPA Executive Director Public Relations 2 Know the Risks! 3 Workers’ Comp Fraud 3 Theft of Life Insurance Proceeds 4 Undisclosed Prior Ar- rest Record Nabs Slip- pery Rock, PA Woman with Insurance Fraud Charges 5 Moon, PA Man Charged with Insurance Fraud for Allegedly Collecting Disability Benefits While Still Working 6 Bogus Wage Loss Claim 7 Motor Vehicle Fraud 8 Know the Penalties! 8 Mark Your Calendar! 12 Who to Call 13 Many states have taken the route of creating fraud bureaus to combat insurance fraud. Going in a different direction, Pennsylvania’s legislators, with insurers, consumers and law enforcement created the Insurance Fraud Prevention Authori- ty not only to combat insurance fraud, but also to prevent insurance fraud. We provide over $14 million in grants to state and local law enforcement each year to prosecute insurance fraud; so that the arrests and prosecutions of some, who are jailed, fined and ordered to pay restitution, will hopefully deter others from com- mitting the crime. But, unless a law enforcement agency issues a press release on a case, or the news media picks up on a case, the bulk of cases go unreported and the general public remains uninformed. To combat this, during 2018, the IFPA continued to promote its “Know The Risks, Know The Penalties” message to Pennsylvania consumers through radio and televi- sion, and moved further into the realm of digital advertising. To take greater ad- vantage of the shorter formats of online viewing, the IFPA created two new 15 - second versions of two of its most popular television spots, “Bad Day” and “Asking for Trouble.” The IFPA also continued its “real life” storytelling designed to appeal to younger audiences. The “See How They Lie” campaign uses high - octane videos, radio and digital ads that feature “real life, real lies, real foolish” insurance fraud schemes and their legal, financial and social consequences. These were deployed through paid digital and social media channels throughout the year. Go Eagles! Philadelphia continued to be designated the priority geographic market during 2018. The IFPA started its advertising year by riding a ratings bonanza: the Eagles’ historic Super Bowl win. The IFPA TV ads aired during Super Bowl special programming starting Jan. 22 and during the game itself on Feb. 4, garnering 3.8 million viewer impressions in the Philadelphia market. The IFPA kicked off a five - week run of television spots and On Demand video in the Philadelphia region on March 5. The IFPA’s radio ads were aired on the Top Ten radio stations in winter/spring from March 5 through April 8 and the summer/fall from Sept. 17 through Oct. 12. Go Phillies! During 2018, the IFPA expanded its successful radio partnership with the Philadelphia Phillies. Starting with spring training Feb. 19, the IFPA aired one of the “See How They Lie” 60 -

2 second radio spots every weekend until
second radio spots every weekend until the end of the season on Oct. 7. One of the IFPA’s “See How They Lie” videos was played in the ballpark before each home game. We’re continuing our relationship with the Phillies in 2019. With excitement building around the team since the signing of Bryce Harper, we hope to reach an even larger audience with our anti - fraud awareness campaign. Thanks for all you do in combating insurance fraud in Pennsylvania! Thomas Donahue Executive Director Public Relations Page 2 Be on the look - out for our two Weasy Mobiles driving around Philly & Southeastern PA! Weasy’s on Facebook too! https://www.facebook.com/dontbeaweasel/ Visit our website at www.helpstopfraud.org; Facebook at www.facebook.com/PennIFPA; and on YouTube! In Central PA, new billboards are popping up! Weasy’s on Facebook too! https://www.facebook.com/dontbeaweasel/ Page 3 Fraud Stories The accounts of insurance fraud and insurance - related crimes that follow are drawn from Pennsylvania law enforcement’s filed criminal complaints, press releases and newsletters. Criminal complaints dock- eted may be viewed online, using the “OTN” shown in each of the following accounts, through the web portal of Pennsylvania’s Unified Judicial System . Individuals shown charged with crimes are to be pre- sumed innocent until they are proven guilty. Know the Risks, Know the Penalties On February 4, 2019, detectives of the York County District Attorney’s Office filed a criminal complaint charging 30 - year - old Sarah L. Roberts of York Haven, PA with Insurance Fraud. According to the complaint, it is alleged that after Roberts purchased a homeowners insurance policy with Nationwide Insurance Compa- ny , she submitted a claim for water damage which reportedly occurred prior to Roberts obtaining coverage. [OTN: U0172292] On February 6, 2019, detectives of the Northeast Pennsylvania Insurance Fraud Task Force filed a criminal complaint charging 25 - year - old Ramona A. Sangster of Equinunk, PA with Insurance Fraud and Attempted Theft by Deception. According to the complaint, it is alleged that when Sangster submitted an auto accident claim on her newly obtained Progressive Insurance auto policy, she misrepresented the accident occurred after she obtained insurance. According to a witness statement, the accident occurred the same day prior to Sangster obtaining insurance. [OTN: U6760622] On February 6 and 13, 2019, detectives of the Philadelphia District Attorney’s Insurance Fraud Unit arrested 21 - year - old Jazmere U. Gravitt of Philadelphia, PA and 28 - year - old Rhyson Witherspoon of Bensalem, PA and charged each with Insurance Fraud, Forgery and Tampering with Records. According to the criminal complaints, it is alleged that Gravitt and Witherspoon registered vehicles by using a bogus American Inde- pendent and Nationwide Insurance financial responsibility identification cards. [OTN: U1534713, U1543286] On February 7, 2019, detectives of the York County District Attorney’s Office filed a criminal complain

3 t charging 41 - year - old Antoine D. W
t charging 41 - year - old Antoine D. Wright of Randallstown, MD with Insurance Fraud. According to the com- plaint, it is alleged that when Wright applied for a commercial insurance policy with Erie Insurance and was asked if he had ever been arrested, he stated, “No”, which was not truthful. According to Wright’s criminal history report, Wright had prior arrests and as well as a prior conviction. [OTN: U0174591] On February 8, 2019, Office of Attorney General special agents arrested 37 - year - old Michelle L. Diguglielmo of Reading, PA and charged her with two counts of Insurance Fraud and one count of Attempted Theft by Deception. According to the criminal complaint, on August 3, 2016 at 3:05 PM, Digugliemo reinstated her lapsed automobile insurance policy with coverage from Safe Auto Insurance Company . During that call to the insurer, Digugliemo reportedly stated that her vehicle was not damaged and that she was not involved in any accidents during the period of her policy. However, Metropolitan Edison filed a claim against Digugliel- mo’s policy after her vehicle struck an electrical box at 2:46 PM on August 3, 2016. Safe Auto denied the claim after determining that the accident occurred prior to Digugliemo’s policy inception. [OTN: U6768635 On February 11, 2019, from a referral received from the United States Postal Service, detectives of the Phila- delphia District Attorney’s Insurance Fraud Unit arrested 31 - year - old Damari Garcia - Maldonado of Philadel- phia, PA and charged her with Insurance Fraud, Forgery and Theft by Unlawful Taking. According to the criminal complaint, it is alleged that the defendant was receiving workers’ compensation benefits while claim- Know the Risks, Know the Penalties Page 4 ing she was unable to work. According to the complaint, Garcia - Maldonado was seen performing tasks that did not support her claim of disability. [OTN: U1541293] On February 11, 2019, Office of Attorney General special agents arrested 29 - year - old Russell E. May of Ebens- burg, PA and charged him with Insurance Fraud and Attempted Theft by Deception. According to the crimi- nal complaint, at 3:37 PM on May 14, 2018, May purchased a Progressive Insurance auto policy, and subse- quently contacted Progressive to report that shortly after he obtained auto insurance, his vehicle struck two parked cars when its brakes failed. According to the complaint, May claimed that the collision occurred be- tween 3:30 PM and 4:00 PM on May 14 th . However, video surveillance of the accident scene reportedly re- vealed that the crash occurred at approximately 3:00 PM, before May obtained coverage. Progressive denied the claim. [OTN: X2377826] On February 11, 2019, Office of Attorney General special agents arrested 43 - year - old Netha Bell of Dresher, PA and charged her with Insurance Fraud, Attempted Theft by Deception and Criminal Use of Communica- tion Facility. According to the criminal complaint, Bell was driving her uninsured vehicle at 3:39 PM on Oc- tober 23, 2017 when it was involved in a two - vehicle accident. At 3:42 PM, Bell called GEICO Ins

4 urance and reinstated her vehicle poli
urance and reinstated her vehicle policy, and subsequently contacted GEICO later that day and allegedly claimed that the accident occurred after her coverage was in place. On November 9, 2017, a GEICO representative spoke with Bell’s attorney who, according to the complaint, advised that Bell admitted to having purchased her vehicle policy after the accident occurred in order to avoid being cited by police for driving without insurance. GEI- CO denied payment of the claim. [OTN: U6761646] On February 11, 2019, detectives of the Philadelphia District Attorney’s Insurance Fraud Unit arrested 51 - year - old Eugene E. Allen of Philadelphia, PA and charged him with Insurance Fraud, Theft by Deception and Forgery. According to the criminal complaint, a Mutual of Omaha Life Insurance Company insured passed away leaving two Mutual of Omaha Life insurance policies with his adult children listed as beneficiaries. Al- len, who is affiliated with the funeral home, allegedly signed the names of the deceased’s children’s names to documents without their permission and took the insurance proceeds. [OTN: U1541260] On February 12, 2019, detectives of the Northeast Pennsylvania Insurance Fraud Task Force filed a criminal complaint charging 67 - year - old Kazimierz Koziolek of Milford, PA with Insurance Fraud. According to the complaint, it is alleged that Koziolek added comprehensive coverage to his Donegal Insurance auto policy and when submitting an accident claim, misrepresented that the accident occurred after he added coverage. However, the accident reportedly occurred before Koziolek obtained comprehensive coverage. [OTN: U6777864] On February 13, 2019, Office of Attorney General special agents arrested 40 - year - old Joshua P. Whittaker of Royersford, PA and charged him with Insurance Fraud, Attempted Theft by Deception and Criminal Use of Communication Facility. According to the criminal complaint, during a February 26, 2018 storm, a tree branch fell and damaged a camper/trailer and other vehicles owned by Whittaker. Later that day, Whittaker obtained coverage for the camper/trailer from Progressive Insurance . According to the complaint, Whittaker then submitted claims to State Farm for his other damaged vehicles which were insured by State Farm. State Farm inspected the vehicles on the following day and took photographs. Approximately one week later, Whit- taker reportedly contacted Progressive and reported that the camper/trailer was damaged on March 7, 2018. Progressive investigated the loss and obtained copies of the State Farm claim photos, and according to the Fraud Stories (Continued) Know the Risks, Know the Penalties Page 5 complaint, investigators determined that Whitaker had misrepresented the date of loss and that the camper/ trailer was damaged before Whitaker obtained coverage from Progressive on February 26 th . [OTN: U6782661] On February 13, 2019, detectives of the Northeast Pennsylvania Insurance Fraud Task Force filed a criminal complaint charging 30 - year - old Douglas H. Chase of Brooklyn, NY with Insurance Fraud and Attempted Theft

5 by Deception. According to the complai
by Deception. According to the complaint, Chase allegedly applied for an auto insurance policy with Progres- sive Insurance and provided that he primarily resided and garaged his vehicle at an East Stroudsburg, PA address when in fact, his primary address and garaging location is that of Brooklyn, NY. [OTN: U6785542] On February 13, 2019, Office of Attorney General special agents arrested 29 - year - old Ahmed Al - Quraishi of Erie, PA and charged him with Insurance Fraud and Attempted Theft by Deception. According to the crimi- nal complaint, on August 9, 2018, Al - Quraishi filed a vehicle accident claim with Nationwide Insurance and stated that at approximately 9:30 PM on August 8, 2018, the passenger side of his 2008 BMW 328xi was damaged when the parked vehicle was struck by a hit - and - run driver. According to the complaint, Nationwide discovered that the BMW’s previous owner had filed a claim with Nationwide on June 10, 2018 for similar damage to the car. During a subsequent interview, the prior owner reportedly stated that he never repaired the damage and that the damage was present when he sold the BMW to Al - Quraishi. Nationwide denied Al - Quraishi’s claim. [OTN: U6782580] On February 14, 2019, Office of Attorney General special agents arrested 43 - year - old Aaron R. Gillin of John- stown, PA and charged him with Insurance Fraud, Attempted Theft by Deception and Forgery. According to the criminal complaint, on May 7, 2018, Gillin filed a claim with Nationwide Insurance for more than $26,000 in lost wages due to injuries that he incurred from a vehicle accident. Gillin reportedly provided Nationwide with supporting documents which purportedly were signed by his employer. However, an investigation revealed that Gillin did not work for the employer as he had claimed. [OTN: U6786920] On February 19, 2019, detectives of the Lehigh County District Attorney’s Office filed a criminal complaint charging 66 - year - old Dennis H. Silfies of Walnutport, PA with Insurance Fraud, Theft by Deception and Receiv- ing Stolen Property. According to the complaint, Silfies reported to his employer, Penn Truck Leasing, that he had been injured while performing his job duties. Silfies began receiving biweekly total disability payments of $1,864 from Inservco Insurance Company as well as medical treatments which Inservco paid for also. According to the complaint, after Silfies reported to Penn Truck Leasing that he was unable to ever drive a commercial vehicle again, the investigation revealed that Silfies had earned $20,273.33 while he had been employed with Yesik Trucking reportedly during the time he was collecting total disability benefits due to his purported injury from his previous employment at Penn Trucking. The complaint reflects that Silfies was paid some $125,278.89 in workers’ compensation wages from Inservco as well as $62,899.25 for medical treatments. [OTN: U6798164] On February 19, 2019, Office of Attorney General special agents arrested 37 - year - old Katherine J. Yova of Slip- pery Rock, PA and charged her with two counts of Insurance Fraud and o

6 ne count of Theft by Deception. Ac- cord
ne count of Theft by Deception. Ac- cording to the criminal complaint, Yova submitted a vehicle claim to Erie Insurance for damage that occurred when her vehicle struck a guardrail. Erie issued payment to Yova in the amount of $2,793. According to the complaint, Yova was asked during the policy application process whether any driver or member of her household had been “arrested for any reason.” Yova allegedly answered “No.” Reportedly, Erie conducted a background investigation that revealed Yova had been arrested approximately 30 times prior to the date of her coverage in- ception. The complaint states that Erie would not have issued a policy to Yova had she been truthful on her application. [OTN: U6797011] Fraud Stories (Continued) Know the Risks, Know the Penalties Page 6 On February 19, 2019, Office of Attorney General special agents arrested 34 - year - old Tonya M. Prowell of New Castle, PA and charged her with Insurance Fraud and Attempted Theft by Deception. According to the crimi- nal complaint, Prowell was involved in an automobile accident on June 22, 2018 when she backed into another vehicle. At the time, Prowell’s Safe Auto vehicle policy had reportedly lapsed for non - payment. According to the complaint, Prowell contacted the insurer after the accident and reinstated her policy. On June 25 th , Prowell contacted Safe Auto and reported that her vehicle was involved in an accident at approximately 5:00 PM on June 23 rd . However, investigators reportedly learned that officers from the New Castle Police Department re- sponded to the scene of the accident prior to Prowell reinstating her policy. [OTN: U6797836] On February 20, 2019, Office of Attorney General special agents arrested 51 - year - old Alan Talarico of Moon, PA and charged him with Insurance Fraud, Theft by Deception and Forgery. According to the criminal com- plaint, Talarico obtained a loan on May 12, 2017, from Merit Life Insurance affiliate OneMain Financial. Talarico also purchased credit, accident and health insurance coverage for the loan, which was underwritten by Merit Life Insurance. According to the complaint, if Talarico became disabled in accordance with the policy, the insurer would cover his monthly loan payments during his disability period. It is alleged that Talarico sub- mitted claims for continuing disability beginning on February 9, 2018. Merit Life paid benefits under the poli- cy through July 31, 2018. According to the complaint, in August 2018, the insurer determined that many of the forms Merit Life had received in support of Talarico’s disability were fraudulent. The complaint further stated that an investigation showed that Talarico had returned to partial duty at his job on March 5 th and had resumed his full duties on April 1 st . According to the complaint, it is alleged that Talarico fraudulently ob- tained benefits from Merit Life in the amount of $1,250.75 for the time period beginning March 31 through July 31, 2018. [OTN: G8310400] On February 20, 2019, detectives of the York County District Attorney’s Office filed a criminal complaint charg

7 ing 47 - year - old Rafael Pena of York,
ing 47 - year - old Rafael Pena of York, PA with Insurance Fraud. According to the complaint, it is alleged that Pena reported to his insurer, Nationwide Mutual Insurance Company , that his car was damaged resulting from a deer strike when in fact, he hit an object. Reportedly, Pena was not truthful as to how the damage to his vehicle occurred because hitting an object could potentially affect his premium. [OTN: U0176654] On February 20, 2019, Office of Attorney General special agents arrested 42 - year - old Lewis E. Bentley, Jr. of Meadville, PA and charged him with Insurance Fraud and Attempted Theft by Deception. According to the criminal complaint, on November 6, 2017, Bentley contacted Erie Insurance and inquired about adding an- other driver to his vehicle policy. Erie informed Bentley that due to the prospective driver’s criminal record, Bentley’s policy premiums would increase. According to the complaint, in order to keep Bentley’s premiums at the same level, Bentley added the other person to his policy as an “excluded driver.” On March 16, 2018, Bent- ley filed a claim for damage to his vehicle from what he reportedly stated was caused by a hit - and - run driver. Bentley reportedly advised Erie that he had obtained two separate repair estimates from a body shop. An Erie representative subsequently interviewed a body shop employee who recalled that the vehicle was brought to the shop by the excluded driver, who requested two estimates. According to the complaint, the excluded driver told the shop employee that the vehicle’s front and rear ends were damaged in two separate accidents that occurred weeks apart. Erie contacted Bentley, who stated that he took the car to the body shop and maintained that the front and rear damage occurred during a single accident. According to the complaint, Bentley admitted to in- vestigators that the excluded driver had been operating the vehicle on February 19 th when the front - end damage occurred and that the rest of the damage occurred in March when the car was struck while parked outside of his house. [OTN: U6802073] Fraud Stories (Continued) Fraud Stories (Continued) On February 21, 2019, Office of Attorney General special agents arrested 25 - year - old Tyler L. Collins of Lake Milton, OH and charged him with Insurance Fraud and Attempted Theft by Deception. According to the criminal complaint, Collins added a 2015 Kia Optima to his Progressive Insurance vehicle policy at 6:48 AM on August 14, 2018. Later that day, Collins contacted Progressive to report that his Kia was involved in an accident which occurred approximately 10 minutes after he purchased the coverage. However, the complaint further states that the Cranberry Township Police Department crash report shows the accident occurred about 20 minutes before Collins added the Kia to his policy. Progressive denied the claim. [OTN: U6805455] On February 21, 2019, Office of Attorney General special agents arrested 37 - year - old Marie D. Rodriguez of Pittsburgh, PA and charged her with Insurance Fraud, Theft by Deception, Forgery and Tampering with R

8 ec- ords or Identification. According to
ec- ords or Identification. According to the criminal complaint, on February 25, 2018, Rodriquez’s vehicle was parked at the side of the road when it was side - swiped by a semi - truck. The complaint further stated that Rodriquez was admitted to a hospital in Erie, where she was treated for a concussion and a neck injury which resulted from the crash. After she was released from the hospital, Rodriquez filed an accident claim with Pro- gressive Insurance . According to the complaint, Rodriguez claimed that the injuries she incurred from the accident caused her to miss work. In support of her claim for lost wages, Rodriguez allegedly provided the insurer with a copy of a purported pay stub from an alleged employer in Pittsburgh, indicating that she had earned $6,500 during the month of January 2018. Rodriquez reportedly informed Progressive that she would not be able to return to work until May 2018. According to the complaint, Progressive issued a check to Ro- driguez in the amount of $4,000 for wages she claimed she lost between February 25, 2018 and April 24, 2018. However, the complaint states that investigators determined that Rodriquez had never worked for the alleged employer and that the earning statement she provided to Progressive was fraudulent. [OTN: G8311085] On February 25, 2019, Office of Attorney General special agents arrested 22 - year - old Wesley D. Martz of Greensburg, PA and charged him with Insurance Fraud and Attempted Theft by Deception. According to the criminal complaint, Martz owned a motorcycle which was heavily damaged when water flooded his residence during the morning of September 10, 2018. The complaint stated that Martz purchased insurance coverage for the bike from Progressive Insurance at approximately 4:00 PM that same day. Martz allegedly contacted the insurer about an hour later and stated that he had discovered the loss after purchasing the policy. Howev- er, investigators examined digital photos of the damaged bike which Martz had submitted to Progressive and determined that the photos were taken before Martz insured the motorcycle. According to the complaint, Martz admitted to investigators that he misrepresented the time of the loss in an effort to get Progressive to cover the damaged bike. [OTN: U6817646] On February 26, 2019, detectives of the Philadelphia District Attorney’s Insurance Fraud Unit arrested 43 - year - old Jasmine Reyes of Philadelphia, PA and charged her with Insurance Fraud and Forgery. According to the criminal complaint, it is alleged that Reyes registered a vehicle by using a bogus Nationwide Insurance financial responsibility identification card. [OTN: U1558944] On February 26, 2019, Office of Attorney General special agents arrested 48 - year - old Rico Collins of Blairsville, PA and charged him with Insurance Fraud, Attempted Theft by Deception, Forgery and Tamper- ing with Records or Identification. According to the criminal complaint, on August 6, 2016, Collins called Nationwide Insurance and filed a claim for property he claimed was stolen from his apartment. Collins alleg- edly reported that

9 he had been out of town for three weeks
he had been out of town for three weeks, then returned home and discovered the theft. According to the complaint, Collins submitted a Sworn Statement in Proof of Loss to Nationwide, which indicated that the thief took jewelry, cash, electronics, CDs, DVDs, a complete R & B record collection and Know the Risks, Know the Penalties Page 7 other items, valued at more than $25,000. Nationwide paid Collins $11,209.75 based upon the claimed amount minus depreciation. When the insurer informed Collins that he would have to submit proof that he purchased the items to be eligible for any additional claim payments, Collins reportedly provided copies of receipts; however, when Nationwide contacted the stores indicated by the receipts, they found that two of the receipts had been fabricated. The insurer denied further payments on the claim. [OTN: U6768381] On February 28, 2019, Office of Attorney General special agents arrested 23 - year - old Sabrina M. Yovich of Waterford, PA and charged her with Insurance Fraud and Attempted Theft by Deception. According to the criminal complaint, on October 3, 2018, Yovich was operating her uninsured vehicle when it collided with two stopped vehicles. While she was at the accident scene, Yovich allegedly purchased a vehicle policy from Esurance and provided the policy number to police and to the other drivers. According to the complaint, one of the drivers contacted Esurance and filed a claim against Yovich’s policy. During the claim process, Yovich allegedly provided two separate recorded statements to Esurance indicating that the accident occurred after she purchased her vehicle coverage. However, the complaint stated that one of the involved drivers provided Esurance with a cell phone screen shot which showed that the driver called 911 to report the accident before Yovich secured her policy. The Pennsylvania State Police crash report reportedly confirmed that the accident occurred prior to the policy inception. Esurance denied payment of the claim. [OTN: U6833352] On February 28, 2019, Office of Attorney General special agents arrested 43 - year - old Melissa Swartz of Read- ing, PA and charged her with Insurance Fraud and Attempted Theft by Deception. According to the criminal complaint, at 12:13 PM on May 28, 2017, Swartz went online and obtained a Safe Auto Insurance vehicle policy for her 2005 Dodge Caravan. On June 9, 2017, a claims representative from Allstate Insurance contact- ed Safe Auto and reported that one of its insured vehicles was struck and damaged by Melissa Swartz’s Dodge Caravan. According to the complaint, the Allstate insured indicated that the loss had occurred at 10:55 AM on May 28 th . A Safe Auto representative subsequently contacted Swartz and took her recorded statement. Swartz allegedly told the representative that the accident occurred around noon on May 28 th after Swartz ob- tained vehicle coverage. However, according to the complaint, the Reading Police Department’s crash report revealed that the loss occurred approximately one hour before Swartz obtained coverage. Safe Auto did not pay the claim. [

10 OTN: X2416094] On February 4, 2019, fr
OTN: X2416094] On February 4, 2019, from a Negotiated Guilty plea to Insurance Fraud, Henry W. Stewart of Gettysburg, PA was sentenced to serve three years of probation, was ordered to perform 50 hours of community service and to pay $3,070.75 in court costs. On September 17, 2018, detectives of the York County District Attorney’s Office filed a criminal complaint charging Stewart with Insurance Fraud and Attempted Theft by Deception. Accord- ing to the complaint, it had been alleged that Stewart’s vehicle sustained $1,549.66 in damage before he ob- tained an insurance policy with Permanent General Assurance Corporation of Ohio . The complaint states that when Stewart filed a claim with his insurer, he misrepresented the time the damage occurred to reflect his policy was already in place. [OTN: U0154954] On February 6, 2019, a Reynoldsville, PA man was granted ARD with 12 months of probation and was or- dered to pay a $100 civil penalty to the Insurance Fraud Prevention Trust Fund and court costs of $1,366.25. On June 21, 2018, Office of Attorney General special agents arrested the defendant and charged him with Fraud Stories (Continued) Page 8 Know the Risks, Know the Penalties The Penalties : The following dispositions of cases previously reported on were obtained via the web portal of Pennsylvania’s Unified Judicial System . Fraud Stories (Continued) Insurance Fraud and Attempted Theft by Deception. According to the criminal complaint, on July 19, 2017, a driver contacted Progressive Insurance and reported that earlier in the day his insured vehicle rear - ended a pick - up truck driven by the defendant. The defendant then reportedly went to a local body shop and obtained an estimate for damage to the truck’s rear bumper, left rear tail lamp and left bed side. On July 24 th , the de- fendant met with a Progressive adjuster and reportedly claimed that the truck’s rear cab area and window also had been damaged in the accident. However, investigators determined that the additional damage was the result of a separate accident. According to the complaint, the defendant later admitted that his truck was in another accident that occurred after July 19 th . The complaint reflects that Progressive agreed to pay the de- fendant $2,468.16 for the damage caused by its at - fault insured. [OTN: U5984521] On February 11, 2019, Heather I. Stockton of Fairchance, PA pled Guilty to Insurance Fraud and Attempted Theft by Deception and was sentenced to serve 15 months in an Intermediate Punishment Program and was ordered to pay $300 in fines and court costs of $993.50. On March 13, 2018, Office of Attorney General special agents arrested Stockton and charged her with Insurance Fraud and Attempted Theft by Deception. According to the criminal complaint, Stockton added comprehensive and collision coverage to her Progres- sive Insurance vehicle policy on October 4, 2017. Stockton subsequently reported that her vehicle was in- volved in an accident on October 11, 2017. However, according to the complaint, investigators determined that Stockton’s vehicle was damaged

11 in an accident that occurred on Septembe
in an accident that occurred on September 29, 2017, approximately one month before Stockton obtained coverage from Progressive. [OTN: U5640390] On February 12, 2019, an Export, PA woman was granted ARD with 12 months of probation and was or- dered to pay a $100 civil penalty to the Insurance Fraud Prevention Trust Fund, $500 in restitution and court costs of $1,260.68. On November 19, 2018, Office of Attorney General special agents arrested the defendant and charged her with Insurance Fraud and Attempted Theft by Deception. According to the criminal com- plaint, on March 24, 2018, the defendant was operating an uninsured vehicle and rear - ended another car. The defendant provided the other driver with her contact information and that she was insured with Progres- sive Insurance . The other driver contacted his own insurer, State Farm, and reported the accident. State Farm subsequently contacted Progressive and advised the company of the loss, and it is alleged that when ques- tioned, the defendant misrepresented that the accident occurred after she obtained her Progressive policy. [OTN: U6417563] On February 13, 2019, from a Negotiated Guilty plea to Insurance Fraud, Lisa M. DeJohn of New Freedom, PA was sentenced to serve 12 months of probation and was ordered to pay a $75 fine and $901.75 in court costs. On October 4, 2018, Office of Attorney General special agents arrested DeJohn and charged her with two counts of Insurance Fraud and Attempted Theft by Deception. According to the criminal complaint, DeJohn’s Safe Auto vehicle policy was canceled for non - payment on September 5, 2016. On October 16, 2016 at 6:12 PM, DeJohn contacted Safe Auto to renew her policy. During the application process, a Safe Auto representative asked DeJohn if she had been in any accidents within the past five years or if her vehicle had any prior damage. DeJohn reportedly said, “No”. The complaint further stated that on October 18 th , DeJohn contacted Safe Auto again and reported that she had been involved in an auto accident in Gettysburg which occurred at 7 PM on October 16 th . DeJohn told the insurer that she and two other individuals had suffered whiplash as a result of the accident. According to the complaint, Safe Auto obtained a copy of the crash report from the Pennsylvania State Police which reportedly showed that the accident occurred at 5:18 PM, which was approximately one hour before DeJohn renewed her coverage. The complaint further stated that according to the PSP report, no injuries were reported at the scene. [OTN: U6345032] Know the Risks, Know the Penalties Page 9 On February 13, 2019, Joel M. Riddell of Hustontown, PA pled Guilty to Theft by Failure to Make Required Disposition of Funds and Forgery and was sentenced to serve two years of probation and was ordered to pay $4,000 in restitution and court costs of $840. On May 24, 2018, Office of Attorney General special agents arrested Riddell and charged him with Theft by Failure to Make Required Disposition of Funds and Forgery. According to the criminal complaint, Riddell worked as a public insurance adjuste

12 r, and that homeowners retained Riddell
r, and that homeowners retained Riddell to represent them in connection with a March 4, 2014 loss. The contract between the home- owners and Riddell reportedly entitled Riddell to receive 10% of every claim payment issued by the home- owners’ insurance company. In March 2014, Liberty Mutual Insurance Company issued a $10,000 check payable to Riddell and the homeowners. Instead of cashing the check and providing the funds less his fee to the homeowners, Riddell endorsed the check with the names/initials of the homeowners and deposited the funds into his own bank account. Riddell later sent the homeowners a check in the amount of $5,000 instead of the $9,000 they were entitled to receive. [OTN: U5840365] On February 19, 2019, a Leechburg, PA man was granted ARD with six months of probation and was or- dered to pay a $100 civil penalty to the Insurance Fraud Prevention Trust Fund and court costs of $1,323.98. On November 27, 2018, Office of Attorney General special agents arrested the defendant and charged him with Insurance Fraud and Attempted Theft by Deception. According to the criminal complaint, the defend- ant was involved in an auto accident while reportedly delivering food. The defendant's Progressive Insurance policy did not include coverage while his vehicle was being used for work, and according to the complaint, it is alleged that when the defendant filed a claim for the accident, he denied he had been working when the accident occurred. Progressive did not pay the defendant's claim. [OTN: U6517033] On February 20, 2019, George M. Yurko of North Versailles, PA pled Guilty to Insurance Fraud and At- tempted Theft by Deception and was sentenced to serve 12 months of probation and was ordered to pay $1,756.75 in court costs. On November 1, 2017, Office of Attorney General special agents arrested Yurko and charged him with Insurance Fraud and Attempted Theft by Deception. According to the criminal com- plaint, Yurko claimed that his parked 2008 Ford Mustang convertible was damaged by a school bus crossing arm that struck the drivers’ side of the Mustang on March 29, 2017. The bus company reported the claim to its insurer, Nationwide Insurance . However, the bus driver and the sole passenger reportedly maintained that the bus control arm was not extended and could not have struck the convertible. According to the complaint, a bus company representative took photographs of Yurko’s vehicle on the day of the incident and provided the pictures to Nationwide. Investigators met with Yurko, and he again blamed the bus arm for the damage to his car. However, according to the complaint, the damages pointed out by Yurko were not present in the photos provided by the bus company. Reportedly, Yurko later admitted that the damages were unrelated and occurred at a different time. Nationwide denied the claim. [OTN: G7916576] On February 21, 2019, Beverly Muldrow of Harrisburg, PA pled Guilty to Insurance Fraud and was sentenced to serve 12 months of probation and was ordered to pay a $50 fine and court costs of $1,050.25. On March 3, 2018, Office of Attorney General special agen

13 ts arrested Muldrow and charged her with
ts arrested Muldrow and charged her with two counts of Insurance Fraud and one count of Attempted Theft by Deception. According to the criminal complaint, Mul- drow’s Safe Auto policy was canceled on November 20, 2015. The policy was reinstated on January 1, 2016 when Muldrow reportedly claimed that the vehicle had no existing damage. On January 6 th , Muldrow report- ed to Safe Auto that her vehicle had been involved in a hit and run. However, according to the complaint, an investigation revealed that the damage was caused when Muldrow’s vehicle struck two parked vehicles before her policy was reinstated. [OTN: U5563526] Page 10 Fraud Stories (Continued) Know the Risks, Know the Penalties On February 28, 2019, Robert T. Berlando of Bethlehem, PA pled Guilty to Insurance Fraud and was sen- tenced to serve 12 months confinement followed by three years of probation and was ordered to perform 15 hours of community service, to pay $750 in fines and court costs totaling $2,212.48. On May 30, 2018, detec- tives of the Lehigh County District Attorney's office filed a criminal complaint charging Berlando with two counts of Insurance Fraud. According to the complaint, it had been alleged that when the defendant applied for additional coverage to his auto policy with Progressive Insurance , he failed to disclose that he was in- volved in an auto accident prior to adding collision/comprehensive coverage. Additionally, it had been al- leged that when Bernaldo filed an accident clam, he misrepresented the time of the accident to reflect that it occurred after he added additional coverage to his policy. [OTN: U5911496] Know the Risks, Know the Penalties Page 11 Fraud Stories (Continued) Page 12 National & State Anti - Fraud Events Offer New Knowledge & New Contacts April 23 — 24, 2019 — PA 2019 Insurance Fraud Conference — Hershey Lodge & Convention Center, Hershey, PA *September 8 — 11, 2019 — IASIU 2019 Seminar — Arizona Grand, Phoenix, AZ National & State Anti - Fraud Events Offer New Knowledge & New Contacts Who to Call PA INSURANCE FRAUD PREVENTION AUTHORITY 6 Kacey Court, Ste. 101 Mechanicsburg, PA 17055 Page 13 Insurance Fraud Allegheny County DA’s Office, (412) 388 - 5346 Allegheny County PD, (412) 473 - 1254 Attorney General’s Office, (717) 787 - 0272 Bucks County DA’s Office, (215)348 - 6344 Cumberland County DA’s Office, (717) 240 - 7764 Delaware County DA’s Office, (610) 891 - 4700 Erie Bureau of Police, (814) 870 - 1258 Lehigh County DA’s Office, (610) 264 - 8758 NE Insurance Fraud Task Force, (570) 963 - 5177 Philadelphia DA’s Office, (215) 686 - 8723 York County DA’s Office, (717) 771 - 9600 x 329 Arson PA State Police - Fire Marshals, (717) 346 - 4597 Phone: 717 - 691 - 1828 Fax: 717 - 697 - 1013 www.helpstopfraud.org IFPA Staff Thomas Donahue, Executive Director, tdonahue@helpstopfraud.org Joan Dockery, Associate Executive Director, jdockery@helpstopfraud.org Christine Cassel, Grants Administrator, ccassel@helpstopf