Jail time for Baldwin man in fraudulent auto insurance scam

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A Baldwin man was sentenced to 16 months to four years in prison on Nov. 19 for defrauding clients and insurance companies by submitting hundreds of fraudulent auto insurance policies, according to New York Attorney General Eric Schneiderman.

Darren Downes, 33, was convicted of fraud and identity theft after he pleaded guilty on July 1 in Nassau County Court to first-degree scheme to defraud, a Class E felony, first-degree identity theft, a Class D felony, and third-degree grand larceny, a Class D felony.

According to Schneiderman, Downes admitted to charging customers hundreds of dollars each to submit policy applications on their behalf to auto-insurance companies like Progressive and GEICO, promising to get them a better policy than they could get on their own. He then falsified customer information, using stolen social security numbers, incorrect zip codes and fictitious professional and educational backgrounds to obtain discounted policies. When insurance companies discovered the false information, Downes’ unsuspecting customers found their policies cancelled or were forced to pay significantly higher premiums. Downes fraudulently obtained approximately $75,000 in policy application fees from customers.

In addition to prison time, Downes was also given an $85,000 fine.

“All New Yorkers pay a price for insurance fraud, which drives up premiums across the board,” Schneiderman said. “This sentence sends a clear message: this office will prosecute anyone who breaks the law to take advantage of unsuspecting customers for personal profit.”