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Taxi Service Charged With NJ Commercial Auto Insurance Fraud

 NJ Commercial Auto Insurance Fraud

NJ Commercial Auto Insurance Fraud

Post Date August, 5  2012 –  An owner of a taxi and limousine service based in Newton, New Jersey was indicted for falsely registering and insuring his service vehicles in New Jersey to obtain lower NJ Commercial Auto insurance premiums. The New Jersey Attorney General,  identified the accused as Moustapha Lo, owner of Safe & Fare Transportation, a resident of Brooklyn, New York.  He was charged for second-degree NJ Commercial Auto Insurance Fraud, three counts of third-degree theft by failure to make required disposition of property received, and three counts of third-degree theft by deception. Newton Limo, Taxi Service Accused of Insurance Fraud Lo was also identified as the owner of Allo Taxi Limited Liability Co., a company that is also based in Newton.

 NJ Commercial Auto Insurance Fraud

According to the New Jersey Office of the Attorney General, between October 2007 and January 2008, Lo allegedly declared misleading statements in applying for NJ commercial auto insurance policies. He was said to have claimed that the vehicles under his New Jersey companies were garaged and being operated in Newton and the Sussex County. However, the prosecutors found out that the said vehicles were garaged and operated in New York City. Aside from this, Lo was also alleged of obtaining premium money from two customers by making a false impression that the said premiums received by his company were forwarded to another insurance company. There is one thing you should keep in mind when thinking about non-disclosing or fibbing on an NJ Commercial auto insurance application.  If you don’t get caught at the time of application, you are going to get caught at the time of a claim.

Lo is also accused of letting three NJ Commercial auto insurance policies to lapse for non-payment of premiums, and keeping the money for himself.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
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