SIXTEEN PEOPLE, INCLUDING FOUR NEW YORK CITY POLICE OFFICERS, CHARGED WITH BRIBERY, GRAND LARCENY, AND OTHER OFFENSES IN SCAMS TO DEFRAUD AUTOMOBILE INSURANCE PROVIDERS

Bronx District Attorney Robert T. Johnson and New York City Police Commissioner Raymond W. Kelly announced today that sixteen people, including four current and one former New York City Police Officers, have been charged with grand larceny and other offenses in the theft of nearly a quarter of a million dollars from seven insurance companies. Of the total amount paid by the insurance companies, over $185,000 was for claims submitted by medical facilities where "victims of alleged automobile collisions" were examined and treated.

The sixteen defendants were charged with multiple counts of Grand larceny in the 2nd and 3rd degrees, Attempted Grand larceny in the 3rd degree, Insurance Fraud in the 2nd and 3rd degrees, Attempted Insurance Fraud in the 3rd degree, Bribery in the 3rd degree, Bribe Receiving in the 3rd degree, Falsifying Business Records in the 1st degree, Offering a False Instrument for Filing in the 1st degree, Forgery in the 2nd degree, Attempted Offering a False Instrument for Filing in the 1st degree, Attempted Falsifying Business Records in the 1st degree and Official Misconduct.

The grand jury, in seven separate indictments, charged the defendants with a total of eighty two counts of criminal conduct, following a two year joint investigation initiated in August 2001, by the Bronx District Attorney's Office and the NYPD Internal Affairs Bureau.

District Attorney Johnson said: "These police officers and their former colleague, in addition to ruining their own careers, have attempted to sully the reputations of the overwhelming majority of our NYPD officers who protect and serve our communities with integrity and commitment. We in law enforcement will not permit the good names of the many to be tarnished by the greed of a few. These are not merely victimless, paper-generated crimes. Millions of innocent consumers suffer economically by having to pay higher insurance premiums to cover these payouts on fraudulent claims.

Commissioner Kelly said: AI want to commend the Internal Affairs Bureau and the Bronx District Attorney's Office for bringing this case to a successful conclusion. When the Department learned of these allegations we launched an aggressive investigation that resulted in today's indictments. The police officers involved in this insurance fraud broke the law and betrayed the Police Department. These arrests should send a clear message that the New York City Police Department will be relentless in investigating any allegation of criminal activity.

New York State Superintendent of Insurance Gregory V. Serio said: "These arrests make it clear that no one is above the law - if you commit insurance fraud you will be arrested and prosecuted to the fullest extent of the law. The sixteen people arrested today, including four police officers, allegedly perpetrated no-fault insurance fraud and stole money from the auto insurance system causing rates to increase for honest New Yorkers."

It is alleged that the defendants caused insurance companies to pay claims totaling $229,785.49 for medical treatment, bodily injury and property damage based on accident reports of automobile collisions that never happened, and medical procedures that never occurred. The defendants have also been charged in connection with claims involving an additional $130, 633.38 in billing that the insurance companies did not pay. The claims were filed with Allstate Insurance Co., State Farm Insurance Co., Metropolitan Group Property & Casualty Co., One Beacon Insurance Co., Prudential Property & Casualty Insurance Co., Travelers Property Casualty, and Kemper Auto & Home Group Insurance Co.

The investigation uncovered evidence that Efrain Colon and Henry Mendez, partners in a Bronx barbershop business at 1291 Bronx River Avenue, supplied the names of the victims that appeared on the accident reports. Colon, a former NYPD officer, allegedly recruited his ex-wife P.O. Trinidad Martinez, ex-brother in law P.O. Julian Martinez, and P.O. Irvin Maldonado to generate the phony accident reports. Mendez, a former police officer in the Dominican Republic, allegedly recruited P.O. Ernesto Colon, brother of Efrain Colon, and also prepped the "accident victims" by telling them what to say when they went to various clinics for medical treatment, and what to claim when seeking compensation from the insurance companies.

It is alleged that Trinidad Martinez prepared phony accident reports on four separate occasions on August 30, 2000, September 9, 2000, September 17, 2000 and December 17, 2000.

Ernesto Colon has been charged with generating one phony accident report on March 12, 2001. Julian Martinez allegedly prepared a report on a non-existent collision on March 18, 2002 and Irvin Maldonado allegedly prepared and attempted to file a fraudulent accident report between November 1, 2002 and November 6, 2002. In two cases defendants allegedly forged the signatures of innocent, non-involved fellow police officers on the accident reports.

Three police officers, with the exception of Irvin Maldonado, allegedly were paid varying sums ranging from $250 to $1,000 for each of the seven fraudulent accident reports that were filed. Eight of the civilian "victims" named in the reports each received payments for personal injuries from the insurance companies ranging from $1,000 to $12,000. submitted by the clinics where the alleged "victims" were examined and treated.

(See attached charts for a list of all the defendants and the specific charges against each of them).

District Attorney Johnson and Commissioner Kelly thanked NYPD Internal Affairs Bureau Chief Charles Campisi, Deputy Inspector Robert Sharpe, Captain Al Pignataro, and the IAB Detectives from Group 22, New York State Superintendent of Insurance Gregory V. Serio, Allstate Insurance Co., State Farm Insurance Co., Metropolitan Group Property & Casualty Co., One Beacon Insurance Co., Prudential Property & Casualty Insurance Co., Travelers Property Casualty, Kemper Auto & Home Group Insurance Co., Chief of Investigations Assistant District Attorney Stephen Bookin, Chief of Rackets, Assistant District Attorney Thomas Leahy, Senior Trial Assistant Larry Hartstein, and Chief Financial Investigator, Bronx District Attorney's Office, Julio Santiago, for the hard work that made the prosecution of this case possible.