Nine convicted in phony car crash scheme

New York State Attorney General Eric T. Schneiderman announced the convictions of nine people for insurance fraud on Nov. 18, for their roles in staging four car crashes in Nassau and Suffolk counties from 2010 to 2011.

The defendants, including ringleader Guilberto Jean, pleaded guilty to participating in a series of staged accidents in which rented U-Haul or Penske trucks were intentionally crashed into cars loaded with people, who were then directed to be treated for fake injuries at medical clinics in Freeport and Valley Stream. As a result of the fake accidents and falsely reported injuries, the defendants submitted fraudulent insurance claims totaling more than $150,000.

“Insurance fraud costs all New Yorkers by distorting the marketplace and increasing premiums,” Schneiderman said in a news release. “Anyone who thinks they will be able to get away with these types of fraudulent practices should think twice. As today’s convictions demonstrate, if you attempt to exploit the insurance system for personal gain, you will be punished.”

The four accidents were staged in order to fraudulently bill insurance carriers and collect illegal payouts from Oct. 2010 to June 2011. In New York State, a person injured in a motor vehicle accident is automatically covered by the Comprehensive Motor Vehicle Insurance Reparations Act, commonly referred to as the “no-fault” law. Insurance carriers are required to provide reimbursement for a wide range of medical and health services for injuries related to car accidents — up to $50,000 per person. In addition to medical coverage, a victim in a motor vehicle accident may be eligible to recover money from an insurance carrier for a bodily injury lawsuit stemming from injuries resulting from the accident.

According to court filings and admissions made by defendants at the time of plea, the defendants rented U-Haul or Penske trucks and then intentionally drove them into cars operated by other participants. The accidents were organized by Jean, who recruited the U-Haul and Penske drivers and the occupants of the second vehicle with promises of cash payments or lucrative personal injury settlements. After they staged the accidents, the defendants lied to the responding police officers and pretended that the accident had been real.

After the crashes, the occupants of the cars struck by the U-Haul and Penske trucks were directed by Jean to seek treatment at Freeport Medical, P.C., at 50 S. Main St. in Freeport or ZSA Medical Care, P.C., at 71 S. Central Ave. in Valley Stream. At the clinics, the defendants filled out insurance forms that included false information about the accident and the defendants’ purported soft tissue injuries. Based on the fraudulent claims of injury, Freeport, ZSA and their associated providers billed insurance carriers more than $30,000 for each accident, totaling more than $150,000.

The prosecution of the staged accidents concluded on Nov. 18 with the conviction of defendant Troy Russell, the driver of rental trucks in two of the crashes. Russell pleaded guilty to one count of grand larceny in the fourth degree and two counts of insurance fraud in the fourth degree and was sentenced by Justice William C. Donnino in Nassau County Court to up to 3 years in prison and $7,500 restitution.

In May 2016, ringleader Jean was convicted of three counts of insurance fraud in the third degree and three counts of grand larceny in the third degree. Jean was sentenced to 6 months in jail, 5 years’ probation, $28,000 in restitution, and 300 hours of community service.

In addition to Jean and Russell, seven other participants in the staged accident ring pleaded guilty to criminal charges.