Accused of submitting fraudulent insurance information to get lower auto insurance rates, a New York City businessman was arrested and arraigned on August 10.

The businessman, Scott Sanders, an operator of fleets of commercial vehicles is being accused of defrauding insurance companies of at least $10 million since 2003 through 2012.

Preet Bharara, US Attorney for the Southern District of New York said that Sanders, a resident of Saddle River, New Jersey, fraudulently claimed to insurance companies that the commercial vehicles he owned are being operated and garaged outside New York City. Due to this claim, insurers have issued policies for Sanders’ vehicles with lower premiums which could have not been if the location of the vehicles operating and garaging have been provided correctly.

Based on authorities’ calculations, Sanders was able to defraud insurance companies of more than $10 million in premiums.

Currently, Sanders is being charged with one count of conspiracy to commit wire and mail fraud, five counts of mail fraud, and one count of aggravated identity theft. Each count of mail fraud charge carries a maximum penalty of 20 years while the aggravated identity theft carries a mandatory minimum and consecutive sentence of two years imprisonment.

Since 2003, it has been mandatory in the state of New York to require commercial vehicles to carry commercial auto liability and physical damage insurance coverage. Typically, premiums for such coverage are being based, in part, on the location of the vehicles’ operation and garage. Vehicles principally operated and garaged within New York City are usually being charged with substantially higher premiums.