Old Man To Be Fined $1.4 Million For NY Insurance Fraud Stunt
Instead of going to vacation spots and enjoying his senior years, a 66-year old central New York resident will have to put a hold to that and just spend a couple of years vacationing at a federal prison after he was found guilty of trying to defraud New York auto insurance industry by staging a car accident, according to the information released by the U.S. Attorney’s Office in the Northern District of New York.
The senior man identified as Joseph Dellerba, a resident of Utica, New York, was also sentenced to pay a fine of over $1.4 million for the said crime. U.S. Attorney Richard S. Hartunian announced that Dellerba received his sentenced in Syracuse on Jan. 31, 2013. District Court Judge Norman A. Mordue handed Dellerba’s sentence which include 30 months in a federal prison and fines.
According to Hartunian, Dellerba was sentenced for his role in an attempt to defraud health care and insurance. On September last year, Dellerba admitted that in 2005 he conspired to commit health and mail fraud almost six years ago.
The conspiracy involved the defendant claiming to have been injured in an accident which was staged. Accordingly, Dellerba submitted false claims for NY no-fault benefits, personal injuries and disability claims. He was accused of seeking medical treatment for injuries that were said to be non-existent. The accident was reportedly to have transpired in Utica on March 20, 2006 wherein Dellerba claimed that he was a passenger of a van that struck a truck that was driven by his co-conspirator.
Dellerba’s medical bills were submitted and paid for by Progressive. Aside from filing for claims, the man also filed suit and was paid in the amount of $682,297.21 as settlement. His case was investigated by the state’s Insurance Fraud Bureau and the Federal Bureau of Investigation, and was prosecuted by the U.S. Attorney Edward Broton.