NEW YORK—Four men allegedly involved in a massive fraud scheme involving commercial car insurance and taxi licenses have been arrested, Attorney General Eric T. Schneiderman announced Thursday.
The four defendants allegedly set up a system over five years for obtaining livery car insurance through shell companies with forged insurance documents. They made insurance carriers and government agencies believe the companies were legitimate, when they didn’t exist, the indictment stated.
After getting “thousands of dollars in commercial car insurance policies from multiple insurance carriers,” the fraud included defendants obtaining dozens of licenses from the city’s Taxi and Limousine Commission and vehicle registrations from the state’s Department of Motor Vehicles, according to the indictment.
“We have shut down this complex insurance fraud ring, and now these defendants will face the justice they deserve,” Schneiderman said in a release, whose office underwent a long-term investigation with the Department of Financial Services.
“Auto insurance fraud leads to inflated insurance rates passed along to hard-working New Yorkers,” Schneiderman said.
The four men are charged with 100 counts in the indictment, including grand larceny, identity theft, and falsifying business records.
Insurance and Taxi Fraud Ring Shut Down
Four men allegedly involved in a massive fraud scheme involving commercial car insurance and taxi licenses have been arrested, Attorney General Eric T. Schneiderman announced Thursday.
6/21/2012
Updated: 7/16/2012
